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Investment

Top 5 High Growth Stocks to Invest in 2022

A lot has happened in the housing finance industry in the last 6–9 months. The “Non-Banking Financial Company” crisis in India has brought to light the problems of the housing finance sector, particularly in terms of financing and low equity capitalisation. Which are the finest high-growth stocks to invest in the housing finance sector? You should know the most recent outlook for the housing finance sector in India, and which companies can benefit from this and take up the market share to benefit investors in India in 2022? First, let’s look at some statistics related to the Indian housing finance sector. [B-01] Statistics Related to the Indian Housing Finance Sector At the end of FY-21, India’s outstanding home loans amounted to a huge 22.4 lakh crore, 12.1% more than they were worth in FY-20. In addition, between FY-17 and FY-21, the Indian home loan market grew at a 32% CAGR. Experts think the market will grow quickly, with a CAGR of close to 22% between 2021 and 2026. And the affordable housing market could be part of what drives this growth. The central government has put out programs like the credit-linked subsidy schemes (CLSS) under the Pradhan Mantri Awas Yojana (PMAY) that have helped move towards the goal of housing for all. Last week, Anarock and PropTiger presented information about the housing market. From January to March, sales of homes in seven cities rose by 71% year over year, to 99,550 units, according to Anarock. Sales in eight major cities rose by 7% year over year, to 70,623 units, according to PropTiger. Reasons for the Popularity of Housing Stocks in the Stock Market Why buy housing-related stocks? Consider three long-term developments that should promote industrial growth: Spending More Time at Home Most of us spent much more time at home because of the COVID-19 pandemic, and many workers are likely to work at least partly from home after the pandemic ends. Therefore, after a pandemic, people will probably want to buy homes more because they will spend more time at home. More People Want to Buy Homes Some millennials have become adults without wanting or being able to buy a home. However, as this new generation ages, the number of families and the desire to own a home will increase. Any help from the national government to make paying off student loans easier should increase the demand for housing by easing the process for the youth to buy their own homes. Low Mortgage Rates Mortgage rates have gone up from all-time lows, yet they are still low compared to the past. Low rates make it easier for people who want to buy a home to do so and let them pay more for their homes. Top 5 High Growth Stocks in 2022: Stock Market Today Company NameLast Price(Rs.)Change% ChangeNet Profit(Rs. cr)HDFC2,504.851.950.0813,742.18LIC Housing Fin383.353.901.032,287.28HUDCO40.65-1.20-2.871,716.60PNB Housing Fin421.20-5.95-1.39821.92Indiabulls Hsg130.00-2.25-1.70696.11 (Data as of 10th Nov. 2022) Detailed Information About Stocks to Invest HDFC (Market Cap* – INR 4,54,969 Cr.) Housing Development Finance Corporation Limited was created to provide long-term loans to homebuyers. The company’s chief business is giving loans to corporations, individuals, developers, and cooperative societies. HDFC helps build, improve, buy, and fix houses, apartments, and commercial property in India. Shareholding Pattern Holder’s NameNo of Shares% Share HoldingNoOfShares1814469764100%Promoters00%Foreign Institutions122926011667.75%NBanksMutualFunds21243999311.71%CentralGovt24916320.14%Others381384472.1%General Public1630740018.99%Financial Institutions1690655759.32% LIC Housing Fin (Market Cap* – INR 20,864 Cr.) LIC Housing Finance Ltd. is one of India’s biggest companies that provides housing loans. The company gives long-term loans so consumers can repair, buy, build, or modify homes. The company helps professionals create or buy nursing homes, clinics, office space, diagnostic centers, and equipment. The loans can be used for either personal or business needs. Shareholding Pattern Holder’s NameNo of Shares% Share HoldingNoOfShares550063000100%Promoters24884249545.24%Foreign Institutions11370643420.67%NBanksMutualFunds7122561412.95%Others137892152.51%General Public6803422412.37%Financial Institutions344650186.27% HUDCO (Market Cap* – INR 8,378 Cr.) Housing and Urban Development Corporation, Ltd. is an organization in India that works on utility and housing infrastructure. It was started in 1970, and its headquarters are in New Delhi, India. HUDCO offers infrastructure financing services for utility, commercial, social, and industrial infrastructures. In addition, HUDCO has many financial services for projects in the information, communication, entertainment, and telecommunications (ICT) sectors. It gives loans and other financial help for rural housing, urban housing, cooperative housing, slum upgrading, repairs, and renovations, etc. It helps NGOs and private builders secure home loans, collects money for the state, public agencies, and private agencies, buys land, and collaborates with agencies that undertake the work. It offers design development, consulting, disaster mitigation, research and training, and other services. Shareholding Pattern Holder’s NameNo of Shares% Share HoldingNoOfShares2001900000100%Promoters163767747981.81%Foreign Institutions43685730.22%NBanksMutualFunds321766141.61%Others253134831.26%General Public1781943808.9%Financial Institutions1241694716.2% PNB Housing Fin (Market Cap* – INR 7,204 Cr.) PNB Housing Finance Ltd. is registered with the National Housing Bank as a housing finance company (NHB). They give loans to companies and people so that they can buy, build, repair, or improve their homes. It also gives loans for commercial space, against property, and buying residential plots. Shareholding Pattern Holder’s NameNo of Shares% Share HoldingNoOfShares168615638100%Promoters5491484032.57%Foreign Institutions00%NBanksMutualFunds32037741.9%Others9927270.59%Financial Institutions23361891.39% Indiabulls Hsg (Market Cap* – INR 5,933 Cr.) Indiabulls Housing Finance Ltd. is in the business of giving home loans. The company helps pay for building and maintenance work on apartments, houses, flats, bungalows, townships, rooms, etc. They give plot loans and loans against residential, commercial, and rental property. The company also provides financial advisory and consulting services. Shareholding Pattern Holder’s NameNo of Shares% Share HoldingNoOfShares471596630100%Promoters451948079.58%Foreign Institutions11793251525.01%NBanksMutualFunds46812380.99%Others348315177.39%General Public20377843043.21%Financial Institutions416106188.82%GDR235675055% (*Data as of 10th Nov. 2022) [B-02] Conclusion Before the ILFS and DHFL crises in the stock market, the housing finance market was steadily expanding. Since then, a lack of cash and the spread of the coronavirus have hit the sector hard. Hopefully, with the help of this blog, you got an idea of the best housing stocks to invest in during these tough times. Piramal Finance is a great financing option for everyone. Visit their website to learn more about the products and services they offer.

08-11-2023

Tax

Everything You Should Know About Income Tax

You are not allowed to take your full salary when you start earning money at any kind of job. Instead, you receive your salary minus any taxes paid to the government. You still have your “net” salary. The term “income tax” refers to this payment paid to the government. You’ve probably heard this phrase before in a few financial discussions. But did you know that you can quickly reduce your tax payments with the right information? So, if you’re also interested in learning more about income tax and income tax filing, keep reading. [B-01] Types of taxes collected by the government Every government uses two different approaches to collecting taxes from the common people. They are: Indirect tax: it is placed on producers first before being gradually transferred to the customer through a network of intermediaries. It is imposed on products and services, not on specific purchasers. It is gathered by the seller or producer. Examples include value-added taxes and sales taxes (VATs). Direct tax: A tax that is paid upfront by the organization or individual that has been charged for it. Examples include taxes on assets, real estate, and income that are all paid by the individual taxpayer directly to the government. About income tax Income tax is part of your income. You pay this to the government for the money you produce. These tax payments provide the government with the money it needs to carry out its day-to-day functions. Many individuals consider filing taxes with the income tax department to be a rather difficult chore. And if you are paying taxes for the first time, then it could even feel impossible to you. So if you are a first-time taxpayer, we have included the key terms to help you quickly understand the fundamentals of income tax. Financial year vs. assessment year For income tax filing, it is important to know the difference between the financial year and the assessment year. Financial year – Also known as the previous year, is a 12-month period that runs from April through March of the following year. For instance, suppose you begin to make money in November 2022. Although your first tax year would run from April 2022 to March 2023, you would be subject to tax on any income earned from November 2022 through March 2023. Assessment Year – It is the year that follows the financial year. Simply put, it is the year in which you will submit your prior-year return. Therefore, according to the above example, your financial year is 2022–2023. The assessment year in this situation would be after March 31, 2023. This is because you will be filing your income tax return anywhere between April and September 2023. Sources of income that fall under the purview of Income Tax Salary income – The government’s most evident source of income tax is your monthly wage. This is true since it is considered to be your main source of income for tax purposes. Income from business – Next is income from business and profession. This is the pay you receive for operating your firm or carrying out your line of work. You must pay taxes on your company profits. The costs might be subtracted from the taxable amount. Income from capital gains – Capital gains tax is another type of tax. When you get a profit or gain from selling a capital asset, you must pay this tax. Apartments or flats, stocks, real estate, mutual funds, gold, and other items are examples of assets in this situation. Income from house property – The second line is your rental property revenue. Income from house property is any sort of rental income that results from a piece of real estate, such as a home, business, or building. This income is also taxed. Income from other sources – Finally, revenue from other sources refers to all other income that does not fit into one of the above categories. These include any dividends received, interest on bonds and deposits, winnings from lotteries, monetary gifts, etc. that are subject to taxation under this category. Tax deductions on income tax The idea of a deduction is to lower taxable income. We spend our money on several things. There is no tax break for purchasing luxuries, but there are several tax regulations that lower your tax burden. These encourage the practice of saving money. This is accomplished by deducting specific expenses from your income. This lowers your overall income and your income tax. It may be computed as follows: Taxable Income = Gross Income (Sum of All Income) – Deductions Therefore, if your deduction is higher, your tax burden will be smaller. Under Section 80 (Sections 80C to 80U) of the Income Tax Act, an individual is entitled to several deductions. These deductions are as follows: 80C – Investments 80CCC – Insurance Premium 80CCD – Pension Contribution 80E – Interest on Education Loan 80EE – Interest on Home Loan 80D – Medical Insurance 80DD – Disabled Dependant 80DDB – Medical Expenditure 80U – Physical Disability 80G – Donations 80GG – House Rent Paid 80GGB – Company Contribution 80GGC – Contribution to Political Parties 80RRB – Royalty of a Patent 80TTA – Interest on Savings Account 80TTB – Interest Income Finally, determining the tax amount to be paid Determining the appropriate tax payment amount is still unclear, even after accounting for all permitted deductions. Tax slabs come into play in this situation. Income tax slabs are different income categories and the associated tax rates. It helps to charge people according to their income. Your ultimate income determines which tax bracket you are in. And you must pay taxes in accordance with that bracket. The different tax slabs in India are as follows: Rs 3.00 lakh – Rs 5.00 lakh 5% Rs 5.00 lakh – Rs 7.5 lakh 10% Rs 7.50 lakh – Rs 10.00 lakh 15% Rs 10.00 lakh – Rs 12.50 lakh 20% [B-02] Now that you are well versed in income tax and the various terms related to it, start your Income Tax Return filing journey today! Visit Piramal Finance now!

08-11-2023

Business Loan

Tips to Get a Fast Secured Business Loan Online

If you need a fast, secured business loan, then it is a great idea to look for the best option. It can be hard to get your hands on a good business loan, and this is why we have come up with this article, where we will provide some tips to help you find the right lender for your needs. [B-01] Secure Personal loan A secured personal loan is also known as a personal loan without security (collateral). If you’re trying to get a secured loan, you must know how much money the lender will lend you and what kind of collateral they want from you. The lender will give you the money and then take your property as collateral until they receive their payment back from the borrower. This means that when taking out this type of loan, there is only one party involved, which makes it easier for both parties involved, including verifying identity documents such as a passport or driver’s license, etc., faster processing times compared with traditional methods used before this invention came into existence today; even better customer service experiences, including online chat support with 24/7 availability anytime, anywhere, at any time. Tips to Get Fast Secured Business Loan Online? When it comes to getting a business loan, there are many things that you need to consider. Some of these include: Look for a business loan based on your need for money and not just on your credit score. If the lender does not understand your business and how it functions, then they will not be able to offer you the best solution for making sure that you can get back on track with paying back the debt in time. Find a lender who offers flexible repayment options so that if there are any delays in payments or if something happens with your company (such as an unexpected expense), then they can work with them as well and help them find other solutions too instead of just throwing them out into default right away. Look for a lender who offers competitive rates and fees to get the best possible solution for what you need. If they offer you a lower interest rate, this will reduce how much money you end up paying back over time. Look for a lender with a good reputation so that you know they will be able to get the job done right. Look at their reviews and see what other people have said about them. If they have many bad reviews, this may indicate that they do not provide good service or quality solutions! Ensure that you have a strong credit score It is important to have a good credit score. We often hear that having a good credit score can get you cheaper loans and better rates on insurance. It also means that you are more likely to be approved for new lines of credit or loans. Poor credit will mean you pay higher interest rates on your existing debts and find it more difficult to get approved for new loans or lines of credit. Know about your business and loan requirements in advance Know about your business and loan requirements in advance. Know the time frame for repayment, interest rates, and collateral requirements. Make sure the lender is reputable, and check their rates and terms before you apply. You can also ask friends or colleagues for recommendations. Finally, read the fine print of your contract before signing anything. And remember that it’s a good idea to have a plan B in place so you can get the money you need if your first loan application is denied. Things to consider before applying for a secured business loan online Before applying for a secured business loan online, you should consider the following factors: The amount of the loan you need: This is one of the most important aspects of your application because it will determine how much money you can afford to borrow. Look for one that suits your business needs and does not exceed them. For example, if you have a small restaurant with only two tables, then an unsecured loan might be too big for your budget; therefore, it would be better if taken out through an instalment plan rather than as a lump sum payment upfront (which is usually more expensive). The type of business: whether it’s manufacturing or retailing, etc. The purpose of the loan: whether you need it for working capital or other reasons. The reputation of the lender: how trustworthy is the company you apply to? Reputable lenders usually have more experience in this field and offer better customer service; therefore, they are likely to offer lower interest rates as well. [B-02] Conclusion In conclusion, you have learned that to get a secured business loan online, it is important to have a good credit score and prove that you can pay back the money in time. You should also ensure that you can get an approval letter from your bank or financial institution before applying for this type of loan. If you are interested in getting a secured business loan online, you should consider applying to a bank or financial institution with a good reputation. You should also ensure that the lender can provide you with all the information about their rates and fees before agreeing to any type of agreement. You should also ensure that you can get a loan application form and an approval letter from your bank or financial institution before applying for this type of loan. If you are interested in getting a secured business loan online, you should consider applying to a bank or financial institution with a good reputation. You should also ensure that the lender can provide you with all the information about their rates and fees before agreeing to any type of agreement. To learn more about secure business loans, visit Piramal Finance.

08-11-2023

How To?

How Do Sovereign Gold Bonds Score Over Physical Gold?

Gold is a valuable asset. It adds value to a portfolio. It also helps to diversify it. Economic experts suggest that at least 10%–20% of a portfolio’s assets should be invested in gold. The primary reason is that gold is a good guard against inflation and currency risk. Buying gold coins, gold bars, or even sovereign gold bonds and gold ETFs (exchange-traded funds) are all ways to invest in gold. This article discusses how sovereign gold bonds compare to actual gold. [B-01] What Exactly Are Sovereign Gold Bonds? Sovereign gold bonds are government securities issued by the RBI on the government’s behalf. They are priced in gold, with one gram of gold being one unit. These bank loans pay a set rate of return on investment. Also, they may be sold in the secondary market to profit from capital gains. Individuals and HUF (Hindu United Family) may invest as little as one gram and as much as four kilograms in these bonds. Yet, the maximum restriction for trusts and companies is 20 kg, as the government regularly determines. The sovereign gold bond scheme might be held separately or jointly. The limit also applies to the first bidder in the event of a joint application. SGBs may be applied for at the banks, scheduled private and foreign banks, Stock Holding Corporation of India Ltd. (SHCIL), authorized stock exchanges, and specified post offices. These bonds can also be purchased online through the websites of well-known financial institutions. Sovereign gold bonds are kept on certificates. As a result, there is no chance of theft or extra storage costs. Perks of Investing in SGB Versus Actual Gold Storage Fees Physical gold buyers must spend money on things like renting lockers and buying insurance. This is to keep their gold secure and recoup losses from theft, burglary, or other incidents. In the case of SGB, however, the gold is stored securely in the custody of the Government of India. No fees are charged to the investors. SGBs Provide Better Returns Real gold is accessible at current market values. But SGBs pay the value of gold plus interest. SGBs receive a basic interest rate of 2.5 percent per year. This is paid semi-annually. The interest is taxable in the hands of the buyers. Also, when you sell real gold, the dealer normally deducts the production fee. This does not apply to the sovereign gold bond scheme. Making costs may vary from 5% to 10%, based on where you acquire your actual gold and in what form. Jewelry, for example, has a greater price than bars of gold or coins. Goods and Services Tax (GST) In the case of investing in jewelry, investors must pay GST and making costs. But there is no GST in the case of investing in sovereign gold bonds. There is no problem with storage or theft. Storage is one of the key obstacles that limit investments in real gold. You must either keep actual gold in your house or in an official locker supplied by banks. Also, actual gold is more vulnerable to theft or loss. When purchasing gold in SGBs, you won’t have to worry about such concerns since the RBI is in charge of storage. Also, when you redeem the bonds, you get cash. Gold Purity Is Guaranteed You don’t have to worry about gold’s purity. This is because the RBI issues SGBs on the government’s behalf. It has often been noticed that when selling real gold purchased from a jeweler or store, the purity of the metal is becoming an issue. Few jewelers and dealers guarantee the purity and grade of gold when they sell it. Guaranteed interest Unlike when storing actual gold, SGB buyers do not need to pay any money to secure the safety of their gold. They also get a fixed interest rate of 2.5 percent per year, paid on a semi-annual basis. Capital Gains Tax Unlike real gold, where buyers must pay capital gains tax on the sale of gold or gold jewelry, SGB investors do not have to pay any tax on maturity gains. Who can Purchase SGB? Sovereign gold bond investments are available to Indians, including Hindu Undivided Families (HUFs), individuals, institutions, charities, and trusts. The founder of a Sovereign Gold Bond is also permitted. Real gold lacks well-defined ownership papers. So purchasing SGBs jointly is more appealing than buying actual gold. Where Can You Purchase SGB? Sovereign gold bond investments are as easy to obtain and purchase as physical gold. This is because their form is available from issuing bank offices, National Stock Exchange of India Ltd., and Bombay Stock Exchange Ltd. designated post offices directly or through agents. The form is also accessible on the RBI’s website, as well as on the web page of the issuing bank. The bond may also be donated or transferred to someone who meets the qualifying conditions mentioned above. SGB payments may be made in cash (up to Rs. 20,000), cheques, demand drafts, or electronic funds transfers. How Do You Redeem SGB? The investor is notified one month before the bond’s maturity date, and the sovereign gold bonds may be redeemed. The redemption amount will be given to you in INR. The India Bullion & Jewelers Association Limited has declared that the redemption price would be based on the simple average of the closing price of gold of “999 purity” over the previous three working days. The interest and redemption amount will be deposited into your bank account. (This is the account you provided at the time you bought the bond.) If the investor’s bank account or contact details have changed, the investor should notify the bank, SHCIL, or post office ahead of time. [B-02] Conclusion Gold is the most viewed asset, with both social and emotional worth. It has long been a popular asset in India. Buying gold has shifted radically as the times have changed. Buying gold coins and gold items is not the only choice. The Indian government has issued digital gold certificates or mutual funds that may be stored in a demat account. Buying sovereign gold bonds reduces the need to worry about theft, storage costs, or even gold purity. Sovereign gold bonds have a five-year lock-in period and mature after eight years. As a result, before investing, one must analyze both options in terms of liquidity, and storage, among other things. Also, compared to other assets, gold is more stable amid market instability. It serves as a buffer against this risk. It stabilizes the value of a buyer’s portfolio. To learn more about sovereign gold bond investment, visit Piramal Finance for related blogs and to explore their products and services.

08-11-2023

Guide

Impact of the Budget on Share Markets

Every year, the government of India plans the budget. A budget is a report that has a lot of information about how much money the government has and how much money it will spend. This extensive report has a comprehensive analysis of the revenue and expenditure between April 1 and March 31 of a given year. This budget report is key to figuring out how the economy works. It helps us figure out things like how much to charge people for loans, how much the stock market is worth, and how much money the government should give to different groups. Why should you be concerned about the union budget and its impacts? As a taxpayer and a potential investor, every decision laid out in the budget report changes your financial situation. Read on to understand more about the union budget and its impact on the Indian stock market. [B-01] Why is the Union Budget Important? The central government prepares the union budget to help sustain and grow the country’s economy. The budget ensures Financial resources are all effectively allocated Reduction of poverty and unemployment in the country Equality in income and the wealth of the nation Clarity and allocation of tax structures and commodity prices What Does the Union Budget Report Contain? The union budget details every estimation and proposed expenditure for the Indian economy during a given fiscal year. It is divided into two parts: The capital budget is the budget for the government. It has a lot of information that tells you how much the government has to pay and how much they have to get. It also tells you how the government will pay for things like developing and maintaining buildings, offices, schools, hospitals, etc. It also tells you about loans and money the government has. The revenue budget tells you how much money the government has and how much it spends. The revenue budget helps with estimations for the new year. How Does the Union Budget Affect the Economy? If we take a look at different aspects determined by the budget, we can categorize them as follows: Planning of year-long government activities: This includes the progress of things like the building of roads, the maintenance of facilities, and the completion of ongoing projects. Structuring financial operations: These include creating estimations and making decisions involving the public’s finances like taxes, borrowing, expenditures, etc. Creating an economic policy: These measures focus on building rules and creating grants to help sustain the economy, decrease pay disparity, and provide equal opportunity for every citizen. How Does the Union Budget Impact the Share Market Today? If you look at the stock market today, every change is the result of the government’s financial decisions. When the government spends more money than it has, it’s like a family that spends more money than it makes. The gravity of the deficit changes how much money India has. When India has less money, it changes how much interest people have to pay for a loan or how much a company has to pay for a stock. What Key Factors of the Union Budget Impact the Indian Stock Market? Stock movement: When there are changes in the budget, it affects the stock market. For example, when interest rates increase, every industry’s cost of capital also rises. Now, profitability will decrease, lowering stock values. When there is negative stock market news, more people try to pull out of stocks to save their invested money. This further reduces share market prices. Income tax exemptions: People invest in the stock market based on their tax brackets and the amount of money they have left to invest. For example, if the union budget increases the tax exemption, it will increase profits in the stock market. Sector policies: When the government provides grants to help any sector—for example, by adding import or duty exemptions, stock prices of industries like textiles will increase. In the event that the taxes on cryptocurrency increase, it will negatively impact the share prices of that sector as fewer people will continue to invest in the stocks. Changes in corporate tax rates: When the tax rates change, they can affect the stock market. For example, if the tax rates change so that people have to pay more taxes, they will sell their stocks. This will cause the stock prices to go down. How Do you Choose the Right Stocks in the Share Market Today? The most important thing to do when you want to invest in the stock market is to find good companies to invest in. You can do this by reading the business news and finding out which companies are doing well. Also, you can find out about the government budget, which will tell you how the government feels about each sector. When the government changes policies in a sector, the stock price will change too. Financial analysts make predictions about how the stock market will perform. They make their predictions based on how they think the economy will do in the future. These predictions affect how people trade stocks on the stock market. So how can you succeed in investing in the share market? Outline your goal for investing – Before you invest your money, you should decide what you want to do with it. Are you investing for a short-term goal, like buying a car, or are you investing for a long-term goal, like saving for retirement? Decide how you want to build your portfolio – This will depend on how much risk you would like to take with your investments. Will it be in safe options like large-cap and value stocks? Or would you want to grow your stocks faster and invest in riskier shares like mid and small-cap stock options? Choose industries that you would like to explore – It is always better to choose to invest in industries you have some knowledge of, as it will drive you to learn trends and explore ways to move stocks. Shortlist your stocks based on share market news and ongoing trends – You can study the performance of different companies, growth rates, return percentages, etc. [B-02] Conclusion Budgeting is key to estimating various aspects of our economy. Every decision laid out in the budget report changes your finances. The union budget affects the Indian stock market in many ways. The gravity of the deficit impacts how much money India has and changes interest rates and stock prices. Analysts predict how the share market will perform based on the decisions made for the fiscal year. Decide how much risk you want to take with your investments before diving into the stock market. Shortlist your stocks based on share market news and ongoing trends. Need help with getting an instant CIBIL report and choosing the right financial options? Explore our service suite on the Piramal Finance website.

08-11-2023

Personal Loan

Top 10 Benefits Of Loan Against Property For Overseas Education

Education is a crucial part of life. It prepares people to take on the various challenges that life can throw at them. However, education costs have skyrocketed in recent years. When it comes to studying abroad, the cost goes up further. In most cases, you might not have enough money to pay for the entire cost. But you cannot let money stand in the way of you or your child pursuing higher education overseas. This is where the option of a loan against property for education abroad comes to your rescue. As real estate prices have also gone up in the last few years, you can put your property to use and get the money you need for overseas education. Many banks and NBFCs offer this loan based on the value of the property against loan. Read on to learn more about this loan against property and its benefits for education abroad. [B-01] What is a loan against property? A loan against property, also known as a LAP, is a secured loan offered by many banks and NBFCs. Herein, you must offer the property in the form of security. The amount that you can get as LAP will depend on the value of the property against loan. As these are secured loans, the loan against property interest rates are much lower when compared with other loans. The maximum amount you can get as LAP varies between lenders and ranges from 60% to 70%. The tenure in the case of a loan against property can go as high as 18 to 20 years. Hence, you will have to pay low EMIs as the loan against property interest rates are low and the loan tenure you can get is very high. Once the money is in your account, you can use it as per your choice and one of the well-known uses of LAP is to finance abroad education. Why loan against property for an education loan? Instead of using a LAP, why not get an education loan to pay for your overseas education? Well, the benefits that you can get from using a loan against property to pay for education at a foreign university are as follows: High Loan Amount: There is, in fact, no upper tab that can limit the amount you can get under LAP. Most lenders offer up to 70% of the property’s value as a loan against it. So, you can get crores of rupees with this option to pursue education at the best colleges abroad. This money is adequate to pay not only for college fees but also for living and other expenses. Low Interest Rates: – Loan against property interest rates are very low compared to an education loan, which is a form of a personal loan. As LAP is a secure loan, there is less risk for the lenders, so they offer low interest rates on it. Low interest rates will help keep your EMIs low, making it easy to repay the loan. Continue to Use Property: When you go for a loan against property to pay for foreign college fees and other expenses, you do not have to give up the property. If you live in that property, you can continue to do so as there is no effect on your ownership. This is a great option to meet all your urgent needs and still be the asset owner. Long Loan Tenure: The maximum tenure to repay a LAP is much longer than an education loan. You have between 18 and 20 years to pay off the loan. This feature helps keep the EMIs low and makes it easy for you to pay the EMIs on time. You can select a tenure that gives you an EMI, which will help you pay off the loan on time. Less Processing Fee: As it is a secured loan, there are some charges that the lenders will levy to verify the property and check the legal title. But other than that, the processing fee and other expenses are less than education loans. Hence, you can save a lot of money for other purposes. Quick Process: Most lenders complete the loan process for a LAP in a short time. This has been made possible with the help of the latest technology, where most of the steps are completed online. You need to submit some basic documents to start the process, and then offer the papers when asked for. Lenders typically take up to two weeks to complete this process. Top-Up Facility: Another benefit of a LAP is that you might not need another loan once you take it. This high-value loan can take care of most of your needs. You can get a top-up loan from the lender if you need more money. You must have paid all your EMIs on time to get this facility. The maximum amount of a top-up loan cannot exceed the original loan value. Property Use: If the property is lying idle, then taking out a loan against the property is a good option to put it to use. You can get a high-value loan to pay for abroad education costs and will still be the owner of the asset till you pay your EMIs on time. Lenders only mark a lien and create a charge on the property, but it is only symbolic; the physical possession will be with you. Waiver of Foreclosure: Many lenders allow foreclosure of a loan against property. Herein, you can repay the entire loan and need not pay any charges. This feature is available after a certain number of EMIs have been paid. So, when you have spare funds, you can pay off the amount. Balance Transfer: As the loan tenure is quite long, you can look for better offers from other lenders. You can opt for a LAP balance transfer if you get a better offer. In such cases, new lenders offer better terms and interest rates, making the loan more affordable. [B-02] A LAP is a good choice if you want to pursue higher studies at a foreign college. It will help you pay all your expenses, including living costs. For the best deals and offers on loan against property, get in touch with Piramal Finance. They provide high-value loans at low interest rates. You can also read their blogs and articles to get a better handle on your finances.

08-11-2023

Business Loan

What Are the Pros and Cons of a Small Business Loan?

Small business loans come in handy when a business is in urgent need of cash. These urgent needs include buying new tools, investing in new projects, etc. When you don’t have ready cash, a business loan can help. Every coin has two sides. Similarly, business loans have their own set of risks. These risks should be carefully studied before applying for a loan. You might lose an asset pledged as security. Your credit score might also be impacted if you default on your payments. Read on to determine whether a business loan will be a good step for your firm. [B-01] What is a Business Loan? A business loan refers to the sum of money borrowed for growing or expanding the firm. The business loan has a single rate of interest and fixed payment terms. EMIs are deducted from your firm’s bank account. Loans for small businesses are money borrowed from a lender, such as a bank or an NBFC. It is a famous method of getting a business loan. There are fewer fees and low-interest rates available for small business loans. It has more flexible terms than other types of loans. If you need a loan like that, you can apply at a bank/NBFC. You can also rely on local lenders, such as credit unions. Pros of Small Business Loans There are many benefits to taking out a small business loan. Here are a few to consider: Assist in Business Growth A business loan can help you grow your company by providing financial support. You don’t need to wait for your business to start reaping profits. With the help of business loans, you can put your dreams on paper and work on them. Keep Your Equity Intact A small business loan allows you to get cash without taking on any investors. It enables you to control your business entirely and retain all the profits as your company grows. Once you have the backing of an investor, he will be entitled to a portion of the profits as well. It will be continued until the business operates. A business loan is a liability until you pay it off. Ready Cash Assistance There can be a shortage of cash in any business. When a business grows, it employs more people and buys new machines. In such times, business loans are quite helpful. You can apply for a loan and use it for operations. Repayment can be made as per the term agreed upon. There is no limitation on usage. No Restrictions on Use If you apply for a loan from a local lender or bank, there is no limitation on usage. Whereas, if you ask for help from an investor, the investor will keep tabs on you. Investors may also restrict the use of the money. Unless the loan is for the firm’s machinery or real estate, you can use the business loan for whatever purpose you see fit. Preferred Over Other Options Always weigh your options before taking a loan. A business loan can be a good option when compared to others. If your business has a market standing of more than five years, then opt for a business loan. OD facility, a firm’s credit card, and a personal loan can incur extra pressure on the pocket. Cons of Small Business Loans Every aspect of business has positives and negatives. You must study both of them before applying for a loan. The downsides of small business loans are as follows: Long Process of Loan Application Lenders are giving a lump sum loan; they will require full-fledged paperwork. It results in a lengthy application process. While filling out the form, you will need to provide three to five years of tax details, books of accounts, and the mission and vision of the business. Default Payment Penalty Banks/NBFCs ask for security to ensure the loan amount is secure. If, in any case, you fail to repay, then the security is used. Any asset used as security you might lose if unable to pay. Start-ups or new firms may have to use personal assets. These can be their homes, land, etc., which applicants might lose if they default on the payment. Good Credit Score The central point noted by all lenders is a good credit score. For business loans, both business and individual, the score is seen. A good credit score determines the rate of interest. Usually, banks offer lower rates of interest than other lenders. It is also not easy to qualify for that minimum level. Your bad credit rating can put a burden on your pocket while you’re repaying. Strict Payment Terms Unlike personal loans, payment terms aren’t relaxed for business loans. Loan amount, regular EMIs, and tenure are all prefixed. You have to be very careful before applying for such loans. Moreover, if your firm’s earnings are not stable, then EMIs can become a burden on your firm’s account. Priority to Well-known Firms Lenders prefer to give business loans to companies that have longer repayment terms than start-ups. Give priority to well-established companies. If you are a new firm or startup, you will have a meager credit score. Banks and NBFCs hesitate to give loans to such firms. A good credit score is a major factor for any lender or bank. It makes your pathway to loan approval easy. New or infant firms find it challenging to get their loan approved. [B-02] Wrapping Up As can be seen, there are both advantages and drawbacks to taking out a business loan, as with anything in life. However, if you’re wise, the right loan can give your business an edge and open up opportunities that otherwise wouldn’t be available. It is critical to keep track of cash inflows and outflows. It helps you qualify for a small business loan if needed. When you have proper books of accounts, it shows the bank that you can manage your money well. It will further increase the chances of business loan approval. For more information about this small business loan, refer to Piramal Finance and explore their services.

08-11-2023

Cards

Tips to Follow When Using Your Credit Card During Festival Season

Having a credit card is very vital to making online and offline payments for purchases. You can use a credit card to buy something when you do not have enough money in your account or cash in your pocket. Most credit cards offer you up to 45–50 days to pay the due amount without any interest. You can easily pay your bills on time using any of these options. When the festive season arrives, it is time to give your loved ones all they desire. If you are short on money, you can make an online credit card payment for anything you want. But it is very easy to spend more than you can afford during festivals, and then you will end up in debt. Hence, you must use your credit card carefully. Read on to learn about some great tips that will help you use your credit card best during the festival season. [B-01] Tips for using a credit card during the festive season There are so many things to take care of during the festive times that you might need money urgently. Hence, you will prefer to use online credit card payment to pay for the goods or services you need. While there is no harm, it is better to follow the tips below to avoid a circular debt. Look for Deals: When the festive season is around, many vendors offer great deals and discounts on online credit card payment. This can include instant discounts or cashbacks. So, look around and find the vendor who offers you the best deals. This way, you will save a lot of money on your purchase and get up to 45 to 50 days to repay the money. Opt for EMIs: Many vendors offer to let you pay for your purchases through EMIs during the festive season. So, when you opt for online credit card payment for your purchase, make sure to opt for EMIs. Many platforms also offer zero-interest EMIs, which means you can buy your favorite products and have anywhere from 3 to 36 months to repay the money. Decide a Limit: It is easy for anyone to build up credit card debt during the holiday season. Hence, it would help if you were very careful when using a credit card during festivals. The best way is to define a fixed budget for the season and make sure you stick to it. Otherwise, you will be forced to repay a high-interest credit card debt. Pay the Entire Bill: – As stated above, many credit cards offer you between 45 and 50 days to repay the money. If you pay the entire bill within this period, you do not need to pay any interest. Else, you will have to bear a very high interest cost on your purchase. So, always try to pay your credit card bill on time. Maximize Reward Points: If you have multiple credit cards, you can make the most of the reward points. Different credit card issuers offer more reward points on some purchases. So, if you plan carefully and use the right credit card for the right purchase, you can accrue many reward points to redeem on your future purchases. Use Reward Points: Most credit card companies run their own reward programs. Herein, you get reward points for various purchases you make with the credit cards. These reward points continue to accumulate over time. So, you can redeem these points to buy great stuff from the catalog of the credit card company. However, most reward points have a two-year expiration date, so make sure you use them within that time frame. Make a Careful Decision: It is vital that, when you make an online credit card payment for a purchase, you do not buy things you do not need. Credit cards have high interest rates, and if you fail to pay your bills on time, you end up with credit card debt. So, make sure you only buy things you truly need, rather than just because your credit card limit allows it. Do Not Use the Entire Limit: Your credit card limit directly impacts your credit score. So, be careful not to overspend and use the entire credit card limit.At any given time, 30% of your credit limit must be free. This rule applies to all your credit cards, and you must keep your expenses under control during this period. Use Your Debit Card: – Many online platforms also offer EMIs on debit cards. But to get this facility, you must have a high credit score and a good credit history. If you are eligible for this benefit, make sure to use it. This will control your credit card debt and ensure you do not spend more than you can afford. Moreover, if you have a balance in your account, you will be better off using your debit card for festive shopping. Do not use a credit card just because you have one. [B-02] Online credit card payment can be a wise decision during the festive season. But you must follow the tips shared above to better manage your expenses during this time. You must know your finances better and make decisions based on your real financial position. To better understand your finances, you must visit Piramal Finance. They have many blogs and articles to help you learn about good credit card habits. Piramal Finance also offers great deals on personal loans, which you can use for your festival spending. High-value loans, low-interest rates, and long repayment periods make them a good choice for your festive needs.

08-11-2023

Home Loan

What Are The 4 Main Types Of Home Loans Available In India?

You cannot always stay in a rented house and raise your family; getting home at a particular point becomes necessary. Moreover, if you consider settling down somewhere, you will need to buy a house. However, with the price of everything rising, owning a home is a big concern. Thus, knowing about housing loans is imperative. There are indeed various types of home loans available in India. These loans are designed based on the requirements of an individual. Therefore, when you decide to borrow a chunk from a financial institution, it is wise to know the different types of housing loans. [B-01] A Brief Keynote on Housing Loans A home or housing loan is a secured loan obtained to purchase a house or property. These types of loans are usually paid through an EMI, and once you pay, the property you have purchased will transfer to your name. Loan lenders provide multiple types of flexible repayment tenures. Its purpose is to make the loan more affordable to loan applicants. You can opt for a payment tenure of 30 years to reduce the financial burden. Generally, all types of home loans are granted after thorough verification. Before seeking any home loan, it is best to analyse your budget and the monthly EMI you can afford. Hence, calculating EMIs in advance plays a crucial role. Get the loan from someone who has the shortest turnaround time. Types of Housing Loans With the need for a house skyrocketing, the demand for home loans has increased these days. Knowing about the four main types of housing loans offered by banks and other financial institutions will help you in the long run. 1. The land purchase loans Many institutions provide loans so you can get a piece of land and build your own house. In that regard, you must know that purchasing land is an individual and flexible choice. You can consider building a house on that land or holding it as a long-term investment. 2. Home purchase loans Housing loans for purchasing a home are the most common of the four kinds of loans. These loans are widely accessible and usually supplied by various financial institutions. The interest rate on home loans may vary between 9.85% and 11.25% daily. But, again, you can check with the financier before borrowing the amount. 3. Home construction loans As the name suggests, these loans are usually designed for individuals who borrow money to construct a house. These home loans cater to individuals who prefer to avoid buying a pre-built house. These loan patterns are specially designed to help you cope with the cost of the construction and building items. You also need to know that you can repay these loans within a tenure of thirty years, which makes them quite accessible. 4. Loans for home extensions You can also take a housing loan for home extensions. These loans are usually appropriate for those considering making minor home modifications. For example, a home extension loan will be the right choice if you are considering extending a balcony or redecorating the porch but are short on money. Why Consider Home Loans? If you are considering getting a home loan, it is best to know why it is a good choice. Here are a few benefits of housing loans. Easy and flexible repayments: The repayment period of home loans is longer. Hence, you will find it relatively easy to cope with the repayment of home loans. You can have tax benefits: Once you get a home loan, you will become eligible for tax benefits. That will allow you to save a lot of money. Freedom to choose the rate of interest: It is a fact that home loans, at times, come with a floating rate of interest that allows you to choose the rate of interest. This gives you the freedom to select the rate of interest that will be easy for you to repay. Enhanced capital appreciation: Home loans help you get a property that becomes a lucrative investment over time. Thus, it makes it easy for an individual to be drawn to fixed assets. Documents Required for Home Loans There are certain documents you need to have to get a housing loan. A few documents that you will need to provide are: The loan application form A few passport-size photos One or two identity proofs The residence proof Bank account statement Property details documents Original salary certificate of the borrower All these documents will be a significant deciding factor in the financial institution’s decision to grant you the loan. [B-02] Final Thoughts Now that you have a clear idea about housing loans and their benefits, you should understand your needs. Please check with Piramal Finance to clear out your doubts about home loans. You are sure to get the best home loan-related assistance from Piramal Finance. They have an outstanding team of professionals to stand by your side throughout the process. Home finance needs are best fulfilled with the help of Piramal Finance.

08-11-2023