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Education

Steps to Ensure a Hassle-Free Student Visa Application Journey

You need a student visa to attend a college of your choice abroad. You can start the application process for a student visa after you have received the acceptance letter from the institute of your choice. Before you put in your application, you will have to make various arrangements. You will have to get an education loan, get your documents together, and much more. Here’s a detailed article on how to get a student visa smoothly. [B-01] The Eligibility Requirement Check the immigration section on the website of the country you are applying to for the eligibility criteria for the student visa. Excellent academic score Enough funds or an education loan Meeting the health requirements of the country Assuredly, you will return once your education is complete Tips for a Hassle-Free Visa Application Getting ready for the study trip? Your dream is about to come true. It might be an exciting and nerve-wracking experience at the same time. Here are some tips to consider if you want the process of applying for a visa to go more quickly and easily. Apply Early Apply as early as possible. Consider the average processing times as well as the date of your intended trip. You can apply for visas often up to ninety days before your intended departure date. Consider an education loan to cover extra traveling expenses. The Turnaround Time Different countries have different timelines for processing student visas. You can find their turnaround time on their websites. Remember, the visa application process might take longer than the mentioned turnaround time in peak seasons. That is why, when applying for a visa, you should always allow for some buffer time. Documents Prepare a checklist of documents for your visa application. Break it down into categories. Make sure that you have all of them at the time of submitting your application. The passport must not have expired yet. Check the validity of your passport and renew it if needed. It should be valid for the next six months. You can also opt for an education loan if you cannot afford the travel and tuition fees all at once. Documents Requirements for a Student Visa Each country has its own unique set of documents required for a student visa. Though the exact conditions may change depending on the country you are applying to, the list is universal. Here is a list of the documents you will require. Valid Passport You should know that you’ll need a valid passport to enter any country. Also, the validity criteria of different countries may vary. For some countries, your passport should be valid until the end of the academic year. For some, your passport should be valid for longer than you plan to stay in the country. Your passport should have at least two unused pages where a visa may be affixed. Remember that if you have any expired passports, you must still send copies of them as well. Photos You will need your passport-size photographs to put in the application. Keep a handful of them with you. Acceptance Letter You will need an acceptance letter from the college. It will prove that you are going for higher education in the country. The letter will validate your student visa. Approved Education Loan You should have proof of enough funds or an education loan to cover the cost of your education and living expenses while you are a student there. Many countries have mandatory minimums, while others might have looser or stricter regulations. When you are applying for student visas in any country, you must provide proof that you have the necessary amount of cash on hand. A letter of approval for an education loan will also suffice. If you haven’t taken the loan, you will need to show the account statement to prove you have enough funds to cover your life and education abroad. Fluency in Language You might also need proof that you can communicate fluently in the language that will be the main mode of instruction. If you want to attend schools in English-speaking countries, you will have to provide proof of your fluency in the English language. You will have to take the language tests, such as the TOEFL, IELTS, and/or PTE. You should score at least the minimum required marks in these tests. If you wish to take a class in a language other than English, you’ll need to provide proof of proficiency with the required tests for that language. [B-02] Conclusion It is important to start the process of applying for a visa well in advance. You will have to do a lot of work before you send in the application. You will need the money, possibly from an education loan, to get all your documents together, have a health checkup, and more. Visa applications take time, and once they reach the embassy, there’s not much you can do but wait. To know more about a hassle-free visa application, you can consult an expert from Piramal Housing. You can also check out details about education loans and other loans on our website.

08-11-2023

Home Loan

The Top 7 Important Factors That Can Influence Your Loan Against Property

Loans are financial aids that help you achieve your goals and dreams, but some factors influence them. Do you want to apply for a loan against property, but do you lack knowledge regarding it? If yes, then this article is simply the best fit for you to find out. In this article, you will come across mortgage loans, their benefits and disadvantages, and things that you should keep in mind before you apply for one. [B-01] Loan against properties: definition and features A loan against property is financial assistance you take from a bank by keeping your property as collateral. Banks sanction your loan by keeping your property as a form of security to ensure that you repay your loan on time. This property can be a piece of land that you own or a house. Until you repay the loan, banks keep this as collateral, and once you complete your repayment, you get back your property. This will be a good option for you, especially if you don’t have any other option that you keep as collateral, like your shares. So, it could be a good way to get a loan against properties. You’ll have plenty of time to repay your loan in small installments. What are some of the benefits of applying for loans against properties? Here are some of the exclusive benefits of applying for a loan against property: Appealing interest rates: Banks often charge you a low rate of interest, and often it starts at 9.50% per annum. This is an advantage of taking a mortgage loan, you are charged a low rate of interest. You can easily pay off this debt in smaller instalments at regular intervals. Quick disbursal: You get the money in your hand mostly within 3 days, which is another advantage of applying for a mortgage loan. If you own a property with a high market value, you will be approved for funds in a short period of time. Long repayment tenure: Besides having a low mortgage loan interest rate, the tenure of repayment is often long. The tenure varies by bank, but it is typically between 15 and 20 years. Transparent processing: The processing of mortgage loans is very transparent; nothing happens under the hood. There are no hidden charges or extra fees, and most importantly, there is a zero to minimal processing charge. High loan amounts: Often, you get the chance to ask for as much as 65% of the market value of the property that you used as collateral. This is a huge advantage for applying for a loan against the property because the loan amount might be huge if your property has a handsome market value. What 7 things should you keep in mind regarding loans against the property? Here are the seven things you should keep in mind before applying for a loan against any of your properties: Evaluate the right market value of your property before you apply for a loan against it Before you decide to apply for a mortgage loan, you must make sure that you know the correct market value of the property that you are going to keep as collateral. This will help you pitch it right before the banks and land a better deal. Have a look at your credit scores Your credit scores matter a lot to banks, especially because a good credit score ensures that you can pay the loan. So, try to improve your credit score and make sure it reaches the mark of 750, which is a very good number. Smartly compare the different interest rates of different lenders You can use a loan calculator to calculate different interest rates that are provided by different banks. Make sure you at least try looking for 20 banks and compare all their rates, and then choose the one that suits your requirements. Look up the documents and eligibility criteria before applying for a personal loan against property See what documents and eligibility criteria banks expect from you for a mortgage loan. Go through every bank and read their requirements, and if possible, make sure that you are fit to apply for it. Check the EMIs and the interest rates of different banks by visiting their websites This is also an important step in applying for a loan against the property because, unless you know how much you are charged and how much you are going to pay, you can’t make an informed decision. Analyse how much money you require in the form of a loan Since your property is at stake in a mortgage loan, you should consider taking the amount you need. Don’t think of taking a huge amount just because your property is worth a lot. The reason is that it might get tough while paying your monthly interest. See if there are any extra charges or fees for applying for a loan against property Sometimes banks might not inform you but might have extra charges like statutory charges, prepayment charges, stamp duty, consultation charges, etc. Make sure you talk it out with your bank before applying for a mortgage loan. [B-02] Conclusion The interest rate for loans against property ranges from 8.0 percent per annum to 15 percent per annum. There are even banks that go below 8.0 percent, especially if you have a good property evaluation and a decent credit score. Make sure you use a loan calculator to spin different interest rates and see what outcomes suit you the best. If you prefer reading such articles and blogs, you should visit Piramal Finance, as they have highly engaging services and content regarding personal loans, financial services, investment ideas, consultations, calculator services, etc.

08-11-2023

Other

How to Craft Effective Company Goals

First, you must acquire the skill of setting objectives before you can achieve a goal. This can sometimes be done through business loans as well. Not even you could deny its obviousness, could you? However, here is where many businesses get stuck. You can waste time and energy if your goals aren’t carefully thought out. It’s better to take a breath and be ready for your goals than to dive headfirst into them and risk failing. Clearly defined: Goals without clear direction are useless. Please don’t be stingy with the specifics; we need them all. Consider the goal of “increasing visitors to my website” as an example of a broad objective. One example of a well-defined goal is “driving traffic to acquire 500 new visitors each month.” [B-01] Measurable: Goals are more likely to be achieved if you include measurable milestones. A quantifiable goal may be, “I want to grow my website traffic by 10% every week; thus, I need to produce two blog articles per week.” You have to keep track of your business loans as well as other expenses. See to it that your goal is realistic: While it’s wonderful to set lofty goals, the actual accomplishment of those goals will keep you moving forward. Stay motivated and keep moving toward your long-term goals. Running a business necessitates the use of business loans, which can assist you in reaching your objectives. It’s important to break them down into smaller, more manageable chunks. Relevant: If you want to succeed, you need to set a goal that fits in with the bigger picture of your company’s plan. Take, for instance, the case where it has been decided that the website in question has to be redesigned. The time, money, and effort needed to create a website from scratch may not be worth it in your company’s grand scheme of things. There’s always room for improvement on your current website. Time-based: Time constraints and deadlines should play a role in your strategy. Working backwards from a deadline may reveal how much time and effort you must devote to a project on a daily basis. Learn how to manage your time effectively Once you’ve determined what needs to be done to achieve your goal, it’s time to get to work. One can only expect to accomplish goals by first engaging in some form of planning. If you are going to start a business, you can get help from a business loan. Remember that our goal is to lessen your burden and time spent on pointless tasks. Effective time management is crucial to achieving our goals promptly. In your role as CEO or founder, you have a lot of freedom and independence, which can be both a blessing and a curse. On the one hand, you’re free to choose your priorities and make your own choices. You, on the other hand, are solely liable for maintaining your path. Effective time management is the antidote to aimlessness A Google search for “time management” might give you the wrong impression because this is a trendy topic that many companies deal with; business loans may help you deal with new start-up expenses. Focus and prioritization are more important than ever, thanks to the proliferation of technological distractions. A sense of duty and backing Taking responsibility for one’s actions is crucial to the success of any business. As a result, it’s crucial to include other people in the objective-setting procedure. Sharing your plans with others is critical; business loans may assist you in regaining control of your company, whether it’s your team or the world. You may have “skin in the game” without feeling exposed by publicly proclaiming your goals when you have a partner for accountability. Sharing your goal with others is meant to make them feel like they’re losing something. Keeping your goals to yourself is a foolproof way to avoid taking ownership of your actions. When people find out what you’re up to, you’ll feel driven to follow through so that you don’t get a bad rap. Acknowledging that you didn’t try to improve when questioned about your development is one of life’s most painful experiences. Keeping tabs and evaluating Once you’ve settled on certain goals, how will you know if you’re progressing toward them? After you’ve set some objectives, decide how to measure your success. You need to ensure efficient and fruitful output. You need to keep tabs on your development to know how far forward you are. This knowledge will be necessary for the future if you wish to repeat your success. It will take a long time to accomplish your goals. More than achieving a goal and then taking a break is required. Establish and stick to your organisation’s aims Once you understand how to create a goal, you must pick one and work toward it. It’s typical to have too many plans and end up accomplishing little. An increase in success is shown when one concentrates hard. Many things in your company might use some work, but you should focus on the most critical objectives: Make a note of everything about the business that needs fixing. Make a list with the items in order of importance. Pick your top two or three priorities and make progress on them before moving on to the others. When you’ve settled on a goal (or set of goals), it’s time to dedicate yourself fully to their realization. This could be self-evident. Dogged determination is essential if we are to achieve our goals, right? Only sometimes, new and interesting objectives easier to commit to, including business loans. However, the day-to-day grind of working toward your goal is less glamorous than it seems. Maintaining Focus on one’s goals necessitates sticking with it even when it’s no longer enjoyable. It calls for turning up even if one is not in the mood. It calls for keeping at it even when the result seems pointless. If you want to achieve anything, you must be willing to stick with it, no matter how difficult it becomes. Dedication is a quality that is essential for achievement in many fields outside of business financing. [B-02] Conclusion While each organization’s goals may differ, they will benefit from a consistent structure. Goals with no clear framework are unlikely to be achieved. Before quickly hurling forth goals that you believe will shift the needle, pause and develop a plan. Your goals need to be stated, committed to, and tracked to be achieved. Tools for managing time and holding yourself accountable to others will help you immensely in your quest. Be honest with yourself and your organization while setting goals. It’s okay for competitors’ goals to align with your own. More success may be achieved in the long run if you focus on the things that drive you. Visit Piramal Finance to learn more!

08-11-2023

Other

The Top 5 Gold ETFs You Should Invest in 2022

Managing finance effectively is all about making smart investment choices. The stock market, mutual funds, cryptocurrency, gold ETFs, etc. are the buzzwords of the twenty-first century. You might want to invest in gold ETFs but fear whether it is a good deal or a risky business. Don’t worry; this article will help you sift through everything and weigh the pros and cons of gold ETFs. In this article, you will learn about gold ETFs, the benefits of investing in them, and the 5 best gold ETFs in India where you should preferably invest. [B-01] What are Gold ETFs and why should you think about investing in them? Buying gold physically might not seem right for many people just because of the fear of crashing the gold market. And the prices might go down in the future, which increases the risk of losing the viability of the commodity. However, to be in the business without even investing in it might sound crazy, but it is possible. And the best possible way to accomplish that is to buy gold ETFs. Gold ETFs, or Exchange Traded Funds, are a type of investment where you buy a commodity exchange-traded fund as a substitute for gold without even buying gold. The underlying asset is always gold, it is just another way to be present in the gold investment without purchasing it. To invest in a gold ETF, you must have a Demat account in your name, and you can use this account to invest through online platforms. Here, one unit of gold ETF is equivalent to one gram of physical gold, which you can trade through the National Stock Exchange (NSE) or Bombay Stock Exchange (BSE). What are some of the exclusive benefits of investing in Gold ETFs? Here are some of the benefits of investing in gold ETFs: Purity as a major factor: Investing in gold ETFs is a profitable business because of the purity factor. Since one unit of gold ETF is equivalent to one gram of pure gold, you always have the advantage of knowing the value of pure gold. No problems with storage: Because there is no longer a storage issue, investing in gold ETFs can be a great investment. It is because you are buying a substitute for gold online in dematerialized form rather than actual gold. You don’t need a gold locker or to worry about where you keep the gold, ETFs help you curb the fear of theft. No making charges: In any case, everyone mostly buys gold in the form of jewelry, which costs almost 10% to 15% of the amount of the actual gold. However, because there are no such fees, purchasing ETFs may be a better investment. Trading is easy: With gold ETFs, you can buy or sell them online through online trading according to your convenience. But if you have physical gold, it would be difficult for you to sell or trade it. Most often, you won’t get the right price and will have to settle for a lesser price. No tax: If you buy physical gold, you have to pay VAT (Value Added Tax), sales tax, etc., which adds extra cost to the commodity. But, if you are buying ETFs, you don’t need to pay any of the above taxes. What are the top 5 gold ETFs where you should invest your money? Here are the top 5 gold ETFs where you should invest your money in 2022: HDFC Gold ETF: HDFC gold ETF is one of the best ETFs because of the returns it provides in the form of interest concerning tracking errors. The monthly return is about 13.5%, which happens to be a decent number. Similarly, for three months, the interest goes up to 15.4 percent but eventually comes down as the months go by. SBI Gold ETF: This is the second most chosen option for investing in gold ETFs, as this is a dependable source. The interest rate for the first month is about 13.5 percent, which increases to 15.5 percent in three months. By the time it hits 6 months, the interest rate remains at 15 percent but goes down to 7 percent by the time it’s been five years. Axis Gold ETF: This is also a very popular option where you can invest in your gold ETF, which registered itself in December 2015. In the first month, the interest rate is 13.4%, which then goes up to 15.4% in the first three months and 14.% in the first six months. But at the end of five years, the interest rate goes down to 6.7%. ICICI Prudential Gold ETF: At the end of 2015, ICICI registered itself in the gold ETF business, and since then it has been praised by investors. For the first month, the return is about 13.5%, which then goes up to 15.4% in the first three months and 14.6% in the next six months. At the end of 5 years, the interest rate goes down to 6.8%. IDBI Gold ETF: In the first month, the IDBI gold ETF gives you 13.5% and 15.4% in the first and third months, respectively. But as we eventually move forward to two years, the interest rate goes down to 1.1%, which is a massive decline. [B-02] Conclusion So, it is crystal clear that investing in gold ETF is a profitable short-term investment that has promising returns. You should weigh the pros and cons before investing in it, as there are some market-related risks associated with it. To choose which ETF best serves your interests, visit their website and see what they offer. Looking forward to reading such blogs and articles on all other investment schemes, loans, and finance-related topics? Then make sure you visit Piramal Finance, as they have amazing content on these topics.

08-11-2023

Personal Loan

Things to Consider While Choosing a Personal Loan Lender

Are you looking for ways to choose the best loan lender for your personal loan plans? Do you want to know what kind of loan lenders are the best? Then stick with this article, where we will talk about personal loans, personal loan lenders, different types of loan lenders, and who would be the best lender for you. [B-01] What is a personal loan, and what are some of its exclusive features? A personal loan is a type of loan that requires you to borrow money from any lender with the promise that you will repay the money at a fixed interest rate. This loan is often taken by those who want it. You will be given a specific time frame in which to complete your instalments. Personal loan lenders often give you the benefit to repay in the form of instalments. Personal loans are mostly unsecured in nature and do not require you to provide any collateral or security amounts to avail of the loan. According to recent numbers, more than 78% of the total credit requests in the country fall into this category. What are some of the exclusive benefits of applying for a personal loan? Here are some of the exclusive benefits of applying for a personal loan in India: The approval period is fast: When you apply for a personal loan you are approved for the loan within one to two days. Your loan gets approved very quickly, and as soon as that happens, your money gets disbursed within a few hours. No collateral: When you apply for a personal loan, the lenders don’t ask you for any type of collateral or security deposit. This is a significant benefit if you do not have collateral to show the banks. Flexibility is high: You have optimum flexibility in choosing the type of loan you want, the decent loan amount, and the period you require to repay your debt. Zero to minimal processing fee: There is not too much of a processing fee; rather, most banks don’t charge you anything. The loan amount is high: Your loan amount can go as high as Rs. 30 lakh, which is a huge number if seen from the perspective of a personal loan. Some banks will even be willing to lend you more than that if you have a very good credit history. Low rate of interest: The rate of interest on personal loans is quite low in comparison to other types of loans. Banks charge you a very low interest rate if you have a clean credit history, a good track record at repaying debts, and a good credit score. What sources are the best for getting a personal loan and why? Speaking of sources, there are only two from which you must choose to apply for your personal loan. They are the banks and private financiers, with the banks being the most preferable choice. Banks: Banks are the most preferred choice as a source for getting a personal loan and that is because of the rate of interest they charge on the loan amount you borrow. Banks charge you a very low rate of interest and give you a reasonable amount of time to repay your loans. You can easily repay the borrowed funds in small installments. There are hundreds of banks in India that act as personal loan lenders, with tempting offers on your loans every now and then. Because there are so many options and you have the option to select the best one for you, it is easier to choose banks over other options available in the market. Private Financiers: Private financiers could also be a preferable option for applying for a personal loan. Many private personal loan companies are there only to provide you with a loan amount. However, the problem with private companies is that they charge you a higher interest rate than banks. This is not the only major setback you would be facing by going to private financiers. You also might not be given a decent amount of time to repay, which might cause you difficulties in repaying your loan. Sometimes, many private financiers also have hidden interests and extra charges that are not present in banks, which is why banks are preferred. However, some private financiers can be generous and should be relied on for a personal loan. Make sure you check the ratings of the company before taking a loan from them to ensure that everything is fine. What are some of the leading personal loan lenders in India in 2022? There are some top leading personal loan lenders in 2022, but this list is based on statistics. You should do your own research before making an informed decision about a personal loan. HDFC banks: HDFC banks have a better rate of interest as compared to other banks and personal loan lenders in the market this year. Their interest rate starts at 10.50% per annum, with a tenure of about 6 years to repay that debt. ICICI banks: ICICI banks are also a genuine option to look into for a personal loan and they charge an interest rate of 10.50% per annum. The time of repayment is also between the range of 1 and 6 years. SBI banks: SBI banks have been an age-old option for applying for a personal loan because of their trust and the connection they have built with their customers over time. Their interest rate starts at 10.60% per year for a period of about 5 years. [B-02] Wrapping it up Most banks in India charge an interest rate in the range of 10.50% per annum to 35% per annum, depending on individual credentials and other terms and conditions. These personal loan lenders see the credit history of the individual, the credit score, and the track record with debts. If you love reading this type of content, you must visit Piramal Finance. They have highly engaging content on personal finance, various investment schemes, many insurance policies, loans, etc.

08-11-2023

Home Loan

What is Better Between a Gold Loan and a Property Loan?

People are now more welcoming to loans than ever. Loans are no longer seen as the last option for getting cash. Instead, they are seen as a way to manage money. People are happy to take out loans with low-interest rates and pay them back in easy installments because it helps them keep their savings. Gold loans and Loans Against Property (LAPs) are two examples of collateral loans. They don’t require selling valuables as a means to cover monthly payments. Both loans have low-interest rates, and you can use them for anything you want. Also, compared to other loans, there aren’t as many rules. The question here is whether a property loan or a gold loan would be better. [B-01] Difference Between a Gold Loan and a Property Loan When people are in financial trouble, they often get personal loans. These loans are made to help you out of a sudden money jam. The high-interest rate, however, makes it hard on the pocket. And what if you don’t qualify for a personal loan? Or what if the amount of money you need is much more than what you can get with a personal loan? In this case, you might consider using the money you’ve saved to get out of your tight financial situation. But it might not always be a good idea to sell assets like mutual funds and fixed deposits. Here is a quick look at how a gold loan differs from a loan against property. Collateral Money lenders will keep the collateral you provide as protection for the loan. It will be called security. You can make monthly payments until you have paid the debt in full. This can be done in the form of EMIs. If you can’t repay the loan for any reason, your lender will use the pledged collateral to get back the amount you still owe. Since both a loan against property and a gold loan are secured loans, you will need to put up an asset as collateral to get them. You must put up gold jewelry or coins as collateral for a gold loan. For LAP, on the other hand, you have to put your commercial or residential property up as collateral. Criteria for Eligibility To get a loan, you must first be eligible for one. When someone wants a gold loan, the lender doesn’t care much about their job, credit score, etc. This, in turn, helps all possible borrowers, especially when they need money quickly, because it is more likely that their loan applications will be approved. Most gold loan companies will give money to anyone between the ages of 18 and 75. This is so long as the gold jewelry or coins put up as collateral meet their requirements. On the other hand, the requirements for getting a LAP are stricter than those for getting a gold loan. All lenders examine age, income, property worth, previous liabilities, business stability or continuity, and credit history before approving a loan application. The Time it Takes to Get a Loan Loan processing time is the amount of time it takes to get the loan. This is important when someone needs money quickly. Most of the time, gold loans are easy to process and get approved. Also, you can get the money quickly, which makes it a great way to deal with a financial emergency. Getting a gold loan is easy, and the loan is processed immediately. After the paperwork is turned in, the loan amount is usually processed in 30 minutes. On the other hand, a loan against property takes longer to process than a gold loan because the lender needs time to check the property documents. Repayment Tenure When deciding which loan to get, the length of time you have to pay it back is very important. The longer the borrower has to pay back the loan, the lower the EMIs are, and vice versa. But a longer term makes the loan more expensive in the long run. Most gold loans have short payment terms. They can be repaid in as little as a year or between two and three years. However, a loan against property has a 10- to 20-year repayment term. Paperwork Requirements Borrowers and lenders can save time and effort by using a gold loan application procedure to streamline the application and approval processes. Lenders only need a few documents before giving out the loan. Gold loans don’t usually require as much paperwork as property loans secured by real estate, but a lender may still want proof of employment, identification, and domicile. [B-02] Conclusion Whether you should get a gold loan or a loan against your property depends on what you need. Gold is a valuable thing that most people own. It moves around a lot and is worth a lot on the market. Since you only have a short time to pay back a gold loan, it would be best to borrow a small amount. LAP doesn’t have a high interest rate and gives you a long payback time. So, it’s the best option if you need to borrow a lot of money. A gold loan should be your initial choice in a financial emergency. This is because it is easy to get and requires little paperwork. To learn more about gold loans and property loans, check out Piramal Finance, and the products and services they offer.

08-11-2023

Personal Loan

Things to Know About Loans Against Shares and Securities

Finding a way to abandon your stock and sell it anyway? Then why not invest in them rather than just selling them for pennies? Yes, we are talking about loans against shares which you should think about giving a shot. In this article, we are going to discuss getting a loan against securities, the benefits of having one, the eligibility criteria, and how to apply for this loan online. [B-01] What is a loan against securities, and why is it taken? So, a loan against securities is a type of loan in which you borrow money from the lender by using your shares, mutual funds, or other insurance policies as collateral. The amount of money that the banks let you borrow depends on the value of your shares. You can still withdraw that money from the account and use it to pay your debt to the banks. Assume you have 5 lakh rupees in shares that you used as collateral for your loan. Now, if you withdraw 1 lakh rupees from your shares, you only have to pay the interest on 1 lakh, not on the entire amount. It can be a very good initiative for you if you are looking for an emergency fund but have nothing except your shares, which you want to dispose of anyway. As a result, taking out a loan against shares allows you to invest the loan amount in the venture of your choice while also paying your installments. What are some of the benefits of taking a loan against securities? Quick disbursal: If you apply for a loan against shares, you can get a quick disbursal of money within one to two days. Especially, if you apply through net banking, you can even reduce the disbursal time to half. Interest only on the used amount: This means you only pay interest for the money you withdraw out of the total value of the shares. In your shares, if you have 2 lakh rupees and you withdraw 30 thousand rupees, then you have to pay the interest for just those 30 thousand rupees. Low-interest rate: The loans you take against your shares are often charged at a low rate of interest. Banks see your shares as good collateral and charge you low-interest rates. If you are good at negotiating, then the interest rate might even get lower. Zero to minimal processing charges: Banks often don’t charge you processing fees, and even if they do for the loan you take against your security, it is almost negligible or so little that it won’t hurt your pocket. Flexible loan limits: Different banks have different loan limits, but the best thing is that they give you flexible options for a loan against shares. You can tailor your loan amount according to your requirements. Most often, you can apply for a loan in the range of 1 lakh rupees to 20 lakhs, which varies from bank to bank and depends on your credentials. No documentation requirement: This is another advantage of taking out a loan against securities, unlike other types of loans. You don’t have to show any of your documents while applying for a loan, which is against your security. In some cases, banks might ask for your legal documents to ensure certain things, but it isn’t a general phenomenon. No penalties for prepayment: Unlike in other types of loans where you have prepayment penalties, you are not penalized for taking a loan against securities. If you have your installment ready before the proposed date, you can simply go and pay without worrying about any charges. Important things to keep in mind about loans against shares and securities include: The time is always not flexible: Though these types of loans seem appealing, there is always a setback to tenure. Some banks provide a maximum of 3 years to repay the loan amount. These types of loans are short-term in nature, and you have to think about this before you apply for them. Make yourself aware of other types of extra charges: Though there are zero to minimal processing fees, there could be other types of fees that you are not aware of. So, while applying for a loan against shares, make sure you ask about fees for stamp duty on the loan amount, pledge creation charges, etc. 3. Not everyone who has shares goes on the list: Not everyone who has shares and securities is sanctioned by the banks; rather, banks allow those who have shares that are potentially doing well in the market. Banks often prefer the top 100 companies that are doing well in stocks, mutual funds, etc. for loans against shares. For individuals, the rules are not that strict, and the eligibility is pretty decent. What is the eligibility to get loans against shares and securities? There are very few requirements to be eligible to apply for a loan against securities. First, you should be an Indian resident who has reached at least 18 years of age. And second, you must have a minimum security value, which differs from bank to bank. An amount of about Rs. 4 lakh is considered the benchmark for applying for a loan against shares. [B-02] Conclusion If you just want to get rid of your shares and sell them for a lower price for an emergency, you should rather use that money as collateral to get a loan against shares. That will help you to cover your expenses, and at the same time, you can easily repay through instalments. If you want to know more about loans, different investment schemes, and finance, you should consider visiting the official page of Piramal Finance. They have decent services and highly engaging content on these topics on their website.

08-11-2023

Other

What is APR? Understanding How APR is Calculated

Financial firms will charge you an APR when you borrow or invest money. It’s the interest that a lender charges on a loan over a year. The Annual Percentage Rate is shown as a percentage of the amount borrowed, and the borrower must pay both the principal amount and the APR. The APR is a way to figure out how much a loan will cost you over a year. It shows the loan’s annual interest rate, processing fees, penalties, and other costs. [B-01] What is APR or Annual Percentage Rate? The annual percentage rate (APR) is the amount of interest added to a loan or investment every year. It is shown as a percentage of the loan amount, expressing the total yearly cost of borrowing money. This includes any fees or extra transaction costs without considering the yearly compounding of interest. The APR gives you a single number to compare different loans, credit cards, or investments. Importance of Annual Percentage Rate One of the most important things to look at when getting a loan is the interest rate. Because of this, you will be drawn to the banks with the best APR. Before you take out a loan from a bank, you should carefully consider all of the fees, even if they seem minor. APR makes it easy to see how much a loan costs. Its primary goal is to assist you in comparing loans better. But it’s important to remember that APR doesn’t consider compounding and doesn’t work for loans with changing interest rates. So, knowing the annual percentage rate (APR) allows you to evaluate loans beyond the total cost. How Does APR Work? The APR is an excellent way to determine how much a loan will cost. Let’s say you have taken a loan of $25,000 with an APR of 5% for five years. That means you will have to pay $470 every month. This payment goes towards both your principal and interest. As the months go by, the monthly amount remains the same, but the percentage breakdown that goes towards the principal and interest changes. You will begin paying less interest. In this case, you will pay $3,306.88 in interest in total. How to Calculate APR? The annual percentage rate varies from bank to bank. You can use the APR calculator to figure out the annual percentage rate that the bank charges for a loan. If you don’t have a calculator, you can use a simple formula to figure it out by hand. Steps for Computing APR The two most important parts of the APR are the loan fees and the compound interest rate over the year. Based on these factors and the terms of the loan, you can easily calculate the APR using these simple steps: Find the rate of interest. Add administrative fees to it. Divide it by the principal amount. Divide it by the total number of days in the term of the loan. Multiply the amount by 365. To convert it into a percentage, multiply it by 100. The Formula You can calculate the APR of a loan using this basic formula APR= [{(Fees + Interest)/ Principal}/ n]365*100 Where: Interest = Total interest paid over the duration Principal = Loan amount n = Number of days in the loan term The Best Way to Reduce Your Current Loan’s APR People who already have loans may want to bring down their APR. If it is high, the monthly interest payments will be high. Since APR is the loan’s interest rate, lowering it could make EMI payments less each month. Here are some ways to bring down your APR: Improve credit The APR of your loan is based on your credit history. Check your credit report before you talk to a lender. If you have bad credit, it’s unlikely that you’ll get a lower APR. Loans with high interest rates go to people who are a risk. So, to lower your APR, you should raise your credit score. Pay Promptly Borrowers must show that they are good at paying back loans and managing their credit if they want a lower APR. Banks only give lower rates and fees to people who pay their bills on time. It shows a customer’s creditworthiness. You must be a responsible borrower who makes timely payments to get a lower APR. Once you prove you can be trusted, the bank might lower your APR. Discuss with the Lender If you don’t have a good credit score but still want to lower your APR, talk to the lender and tell them why it’s crucial. If you pay your EMIs and other bills on time, the lender may lower your APR. The lender may agree to your request if you are honest about being sick, losing your job, or hurting your finances. Transfer loans If your bank or lender doesn’t offer a lower annual interest rate, you can move your money to a different bank that does. With this choice, you can switch your loan to a bank with a low-interest rate. Some banks charge fees for transferring balances, while others don’t. The APR will go down when you switch to a bank with a lower interest rate. [B-02] Conclusion APR is an important number to keep in mind when choosing a loan. It gives you a clear idea of how much the loan will cost, so you can plan how you will pay it back. It is also very helpful when comparing loans since the APR lets you choose the loan that will cost you the least. So, make sure you figure out the APR of the loan so you can pick the best one. 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

Other

Things to Know While Doing Intraday Trading

Trading in the equity market is tricky, even for someone with a lot of expertise in the area. Things get even tougher when you opt for intraday trading. Here, you have to finish buying and selling stocks on the same day. Hence, intraday trading strategies will differ a lot from interday trading. Your focus while picking ‘intraday stocks for today‘ is to make a quick profit and not hold on to the position. Whereas, with interday trading, you are in it for the long haul and invest your money in a stock for extended periods. Hence, the risk present in intraday trading is much higher than in interday trading. But if you are up for the task, there are chances you can make a lot of money with some unique intraday trading strategies. Read on to learn about the key aspects of intraday trading before you select suitable ‘intraday stocks for today.‘ [B-01] Things to Know While Doing Intraday Trading Before you start creating your intraday trading strategies to select the best intraday stocks for today, there are some key things that you must learn about this strategy: Demat Account You must have a demat account if you want to engage in this type of trading. This will enable you to execute the deals as quickly as you desire, and you’ll benefit from sudden changes in stock prices. On the other hand, if you depend on a dealer, it might take some time to complete the trade. You might then end up losing money with your intraday trading strategies. Be Wise Do not jump into the equity market just because everybody else is doing it. When you invest money in equity, there is always a risk. This risk increases when you buy and sell on the same day. There is always the possibility that you will suffer losses as a result of unexpected events that occur that day. So, it is wise to invest only the money you can spare. It will ensure that your family’s security is not put at risk. You can increase the amount as you gain experience and pick the best intraday stocks for today. Prepare a Strategy There is an old saying, “Failing to plan is planning to fail.” This holds true in the case of intraday trading, as the risk element is very high. If you invest your money only based on a hunch, there are chances you might lose it. Instead, do good research and look for intraday stocks for today that meet your risk profile. Have a strategy in place when you invest the money to reduce the risk and boost your chances of making a profit from the trade. Transaction Charges Most platforms charge a fee on every trade you complete using intraday trading. This would mean you will have to pay a lot of money as charges if you buy many intraday stocks for today. If you want to keep this cost under control, you need to plan your trades with a decent volume size. Make sure that instead of doing many small trades in a day, you opt for a few larger trades. You must select a platform that levies lower charges on every trade. Average Out the Cost No one in history has been able to time the market to perfection. Therefore, it will make sense if you purchase some stock every few hours instead of making one large trade at the start of the day. This will help you average out the intraday stock price for today and reduce risk. Hence, you will be better able to correct your position if the stock price takes an adverse turn. Stop Loss One mistake that most traders make is getting too greedy. Thus, they hold on to an adverse position, hoping the price will soon reverse and go in the desired direction. But this is one of the worst intraday trading strategies you can use. Here, the chances of increasing the losses are very high. Hence, you need to put a stop-loss order on every stock you buy. This will make sure that after the price goes below a certain level, the trade is completed itself. Hence, your losses are limited to a certain level. Book Profit Whenever you pick intraday stocks for today, you must ensure not to get greedy. If the price is moving in a given direction, this does not mean that it will continue doing so. It might reverse and start going in the opposite direction. This will reduce your profits and might even lead to a loss. Hence, you must book the profit once the price crosses a given level. This will help you make a decent profit on every trade that goes as per your target. [B-02] Choose Carefully When you pick intraday stocks for today, you must take due care. Do not pick a company based only on its claims or just because others are doing it. Do a lot of research on the company to see its track record. If the stock prices for this enterprise are volatile, then you must opt for it only if you are sure and have done your research. Select a stock with a good track record and a transparent approach. You need to have sound intraday trading strategies in place to reduce the risk and boost your chances of making a profit. If you need more clarification on this type of trade, you must first learn more about it. Piramal Finance has a lot of articles and blogs on intraday trading to help you learn more about it. This will give you more confidence while engaging in the equity market.

08-11-2023