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What Are the Pros and Cons of Opening Multiple Demat Accounts?

A savings account is a convenient way for you to save money. It gives you easy access to your funds and protects them from mishandling and theft. A Demat account is your electronic savings account for your shares and securities. Demat accounts have become popular, but very few know how they work. This article highlights everything you need to know about Demat accounts. We also answer the question: can I have multiple Demat accounts? But before we answer this question, let’s get into the basics. [B-01] What is a Demat Account? A demat account is an online savings account for investors and stock market traders. It holds the shares and securities that you buy from trading and investing. They are managed in an electronic format. “Demat” refers to “dematerialized,” meaning not existing in a physical form. A demat account makes trading easier for you. A Demat account holds all the investments. It includes ETFs, mutual funds, bonds, government schemes, etc. The largest benefit of a Demat account is that it gives you an overview of all your investments in one place. Demat accounts are accessible from all over the world. What are the eligibility criteria for opening a Demat account? You must be at least 18 years old. Only an Indian citizen or NRI can apply for a Demat account. You have to provide proof for both. The documentation for opening a Demat account is as follows. Identity proof Address proof Income proof Signature on a blank paper Evidence that you have a bank account Passport photograph What are the different types of demat accounts? There are three different kinds of demat accounts used in India. You cannot use all three, and each type is for a different category. Based on your location and eligibility, you can open an account. Regular Demat Accounts The most commonly used accounts are regular demat accounts. NSDL and CDSL provide these accounts to Indian citizens. These bodies deliver these services through intermediary bodies. These intermediary bodies can be stockbrokers, depository participants, etc. Repatriable Demat Accounts Repatriable accounts are ideal for NRIs who invest in the Indian stock exchange. These Demat accounts can be used for trading using foreign currencies. They function under the supervision of FEMA. NRIs need an associated non-resident external bank account to open an account. Non-Repatriable Demat Accounts These Demat accounts are for NRIs who want to transfer funds between different countries. A non-repatriable Demat Account requires an extra NRO bank account to transfer money, while a repatriable Demat account does not. A non-repatriable Demat account helps NRIs who have income sources in India and abroad and face difficulties managing their finances. It also helps them manage Indian and international bank accounts in one place. Can I open two demat accounts? Yes, you can open multiple Demat accounts to trade stocks and bonds. There is only one condition: you cannot open many accounts with the same intermediary. For example, if you have an account with ICICI Securities, you cannot open a second account with ICICI. It has to be through a different intermediary. What are the pros of having many demat accounts? You can organise your investments You might be trading on different platforms with different brokers every day. Opening many accounts allows you to organize your investments. You can use these accounts according to your goals. Opening many accounts also ensures your investment will not overlap. You receive insights from various brokers You can keep a record and gain information from several brokers with multiple Demat accounts. It will help you analyze your trading pattern. You can then decide how to approach the brokers to increase your investments. It will help you improve your trading skills. In addition, there is a high chance that the information is free of bias. You can separate your investments Suppose you invest money in both long-term investments and short-term investments. So you can open multiple accounts and keep your money separate. You can keep the amount you invest for short-term and long-term goals in different accounts. The separation will help you keep track of your investments and goals. What are the cons of having multiple demat accounts? Now that we have discussed the advantages, let us go through some of the cons of opening multiple Demat accounts. It is tricky and confusing Managing many demat accounts is not a piece of cake. It is difficult if you lack experience in trading and investing. It will further burden you with issues, such as missed investments, difficulty tracking your investment, etc. Managing many accounts is expensive By opening more than one Demat account, you have to bear the extra charges of each account. The charges include maintenance costs, transaction charges, etc. These charges are less if you have only one account for all transactions. The annual maintenance cost on a Demat account is about INR 700 to INR 1000 per account. Your account cannot be inactive If you have opened multiple Demat accounts, you also have to make sure that there are periodic transactions in each. If your account does not have a set number of transactions per quarter/year, it will be marked inactive. The process is time-consuming, and keeping track can be difficult. [B-02] Conclusion A Demat account is a very accessible and convenient way to manage your money. Trading and investing are becoming popular. Keeping everything in an electronic format is ideal because you can process the information. In India, bodies like the NSDL and the CSDL provide Demat Accounts to citizens who trade and invest. Piramal Finance can provide you with more information on stock markets, trading, investments, finance management, etc. Go to Piramal Finance to read more similar blogs.
08-11-2023
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Home Loan

Loan Against Property: Top 5 Mistakes You Should Avoid

A loan against property is a secured loan you can take to meet your business or personal needs. Compared to unsecured loans, it gives you a higher borrowing capacity at lower interest rates. A loan against property can be obtained against a residential or commercial property without losing its ownership. The lenders usually go easy on the borrower’s credit score while evaluating their creditworthiness. Due to this relaxed approach, borrowers often miss out on some important factors. Here is a list of five mistakes you should avoid while taking a loan against property. [B-01] Mistakes to Avoid While Taking a Loan Against Property Before you take a loan against property, you should avoid these common mistakes. Not Comparing Interest Rates Interest rates have a direct effect on your monthly finances. The higher the interest rate, the more your monthly EMIs will be. As a result, regardless of the type of loan you choose, it is best practice to compare interest rates. Look at the rates different lenders are offering. They might differ from lender to lender. One can easily find them online. Once you compare the interest rates, choose the ones that meet your requirements. Not Comparing Processing Fee Most lenders charge a processing fee between 1% and 2% of the loan amount. Since loans against property are big loans, the processing fee can be significant. So you must consider this factor before taking a loan against property. If the loan is offered at fixed interest rates, the lenders may also charge prepayment charges. However, as per the RBI guidelines, floating interest rates have no prepayment charges. Prepayment charges may cost you a hefty sum, so try to secure a loan against property with a floating interest rate. Not Opting for the Right Tenure Loan tenure plays a key role in loan repayment against property. It also affects your monthly finances, given that you will be repaying it in EMIs. Choose the right tenure so that monthly EMIs don’t become a burden and you can pay them without defaulting. Failing to make the repayments on time can have negative effects on your credit score and loan eligibility in the future. It may even attract some penalty charges. Choosing a longer tenure will reduce your EMIs, but it will increase the interest rates. And a shorter tenure will decrease the interest rate, but the EMIs will be much bigger. Shorter tenure works best when your current liabilities or fixed obligations are on the lower side. Hence, choose the tenure according to your suitability. Not Considering the Disbursal Time Disbursal time for a loan against property can take up to 2–3 weeks. It takes time for a lender to verify all the documents and evaluate the market price of the property. For people looking for instant funds, a personal loan might be a better option as it has a shorter processing time. Nonetheless, if you want a loan against property, inquire about the disbursal time with the lender before applying. Not Factoring Existing Liabilities When you apply for a loan, a lender will check if you have other existing liabilities. They will look at your debt-to-income ratio, which shouldn’t be too high. This is used to ascertain your repayment capabilities. If you have other loans when you apply for a loan against property, only borrow the amount you can repay without trouble. Your credit and repayment history will also be considered. A history of defaulting might result in getting the loan at higher interest rates or even rejection. Benefits of a Loan Against Property A loan against property can be used for many purposes. Apart from its uses, it comes with multiple benefits as well. Easy online application. Longer and more flexible tenure of up to 15 years. It lessens the burden on the borrower. Processing is transparent, as there are no hidden charges. Lower interest rates as compared to unsecured loans. Higher loan amount. No restriction on the end use of the loan. You can use it to expand your business or for other personal reasons. You do not lose ownership of the property used to secure the loan. You can stay at the property hassle-free once the repayment conditions are fulfilled. [B-02] Conclusion A loan against property is a mortgage loan that can be taken against a commercial or residential property. It comes in handy during times of financial crunch. You can even use it for business expansion and even personal needs like a marriage in the family. Some factors that a lender will check before approving the loan are a healthy credit history, your income, the value of the property in the current market, and more. Loans against property are secured loans. Hence, they offer larger borrowable amounts and lower interest rates than unsecured loans. Compare the interest rates with what other lenders are offering and opt for the tenure that suits you the best. Check the other factors we mentioned before taking a loan against property. For more finance-related blogs and other tips, visit us at Piramal Finance. Our experts over there will help you make better financial decisions.
08-11-2023
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Personal Loan

Signs to understand Personal Loan Scams

Financial fraud costs consumers a lot of money. Con artists try to get their scams into the hands of those most likely to fall for them. Beware of personal loan scams that might leave you out of pocket if you aren’t vigilant. Learn the signs of a legitimate lending firm to prevent becoming a scam victim. Some typical indicators of personal loan fraud are listed below. [B-01] Lender guarantees approval Credible personal loan companies always state clearly that they will check your credit and often pull reports from all three main credit bureaus (Equifax, TransUnion, and Experian). Criminal organizations don’t care if you have good credit or not. They look for high-risk borrowers who are most likely to miss payments and incur high costs. It would help if you stayed well away from any lender that makes the following promises or who assures clearance. No one here cares about your history. Your loan application has been approved. Which is better, having bad credit or no credit at all? Your state does not permit this lender’s kind of business. The registration of a business must be verified before any decisions can be made about its legality or the ability to detect fraudulent practices. Several trustworthy personal loan companies will consider borrowers with less-than-perfect credit. These loan providers look at more than just your credit score to decide if they will work with you. Nonetheless, these loan providers will often want documentation of your income, job history, and education level before they approve your loan application. Prepayment methods Several scams have targeted prepaid debit cards, gift cards, and other financial information. Cons usually make some excuse, like needing the data for insurance, collateral, or fees. It’s a trick to trick you. Communication methods from the lender Be wary of anyone who offers you a personal loan by unsolicited means such as phone, mail, or even door-to-door services. The debtor cannot be located Any potential lender worth considering will have a physical presence. Check the location’s viability with Google Maps, just in case. Personal loan scammers may use empty lots as “offices,” so it’s important to double-check the address they provide you. Avoid the lender if there is no trace of a physical location. Many fraudulent enterprises use anonymity to avoid detection and prosecution. The lender imposes time limits Do not give in to coercion. The imminence of a deadline to sign up for a personal loan because the offer would expire soon, such as within a day, is one of the elements of personal loan scams. The lender may threaten to withdraw your driver’s license or bring a lawsuit if you hang up without providing a fast response. There’s a chance that banks or other financial institutions that use excessive pressure to close deals are up to no good. Perhaps someone is trying to trick you. Lender’s fees are kept a secret If you ask a scammer what they charge, they won’t tell you. They may also tell you that you’ve been pre-approved for a personal loan and then demand payment before it is even processed. Although some legitimate lenders do not publicize their fees on their websites, they must be revealed during the application process and before signing. The introduction of additional costs after loan approval is a major red flag. Researchers warn consumers to stay away from businesses that use this practice, especially if they are told the payment is for “processing,” “insurance,” or “paperwork.” It seems too good to be true It is most likely a scam if a personal loan offer is too good to be true. Honest lending companies won’t contact you with an offer that seems unbelievable. A loan with an absurdly low interest rate is probably out of reach unless you apply and agree to a thorough credit check. Conventional loan programs Most loan scams try to either get money up front or place extreme conditions on the personal loan that make the customer susceptible to late payments and other penalties. There are several well-known examples, such as: Forgery of loan fees: If you pay hundreds or thousands of rupees upfront, scammers may offer you a personal loan with a low-interest rate. Once they get these funds, they will cut off contact and stop sending payments. Tricks with no credit check loans: Some legitimate lenders go beyond your credit score when deciding, while others provide loans with no collateral and no credit check. Since your credit history is a big part of figuring out how risky of a borrower you are, this is a red flag. Debt consolidation scams: Debt consolidation can reduce your monthly payment amount and interest costs. Aggressive debt consolidation companies that tell you to stop communicating with your creditors are almost certainly trying to scam you. [B-02] Conclusion Con artists will do whatever it takes to get their hands on your money, including passing themselves off as a reliable lending institution. Financial scammers frequently use tactics like changing caller ID names and numbers to appear more legitimate. Piramal Housing Finance may help you get more accurate information. Go visit right now.
08-11-2023
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Business Loan

What Are the Important Aspects You Should Know about Working Capital Loans

Most firms have periods of poor income at least once a year. These firms must prepare to cover the day-to-day expenditures, pay the staff, and, most importantly, remain ahead of competitors, whether it’s due to seasonal demand variations or the weather. A working capital loan or commercial loan, a financing solution meant for short-term concerns, is one approach for firm owners to address this issue. However, it might be challenging to grasp what you’re getting yourself into if you’re new to this form of finance, mainly if this is your first time seeking a loan for your firm. If you’ve been wondering, “What is a working capital loan?” you won’t have to for long. Continue reading to learn all you need to obtain a working capital loan. [B-01] What is a working capital loan? As the name suggests, these loans fund a firm’s daily operations. Working capital loans often have shorter terms than long-term firm loans, often from six to twenty-four months. Firms do not invest in the long-term assets of the firm. Instead, satisfying urgent demands is the primary goal of working capital loans. Here’s a quick recap of how cash flow loans function. Consider a sessional firm like a fireworks seller. The seller makes the bulk of the sales over the holiday season. But one of the slower times of the year occurs just before the holiday season starts. As a result, it’s conceivable that surplus cash stocks would run dry before the busy season begins. The current difficulty is collecting money so the seller can buy a lot of stock to meet rising demand during the busiest season. Working capital loans can be helpful in this situation. The fireworks retailer can buy goods in time for the holiday season by taking out a working capital loan. After the holiday season, the firm can rapidly repay the loan because it has more cash on hand. Types of Working Capital Loans Tool Loan As the name implies, this loan is designed to support firms in purchasing new tools or machines. Such a loan normally contains an end-use restriction, which means you can’t use the money for anything other than buying tools. Bill Reduction Many firms utilise bill discounting to fund diverse working capital needs. You may use this option to discharge the funds in outstanding invoices ahead of the maturity dates. You must submit your outstanding invoices to a lender to get this working capital loan. Depending on the worth of your overdue bills, you may then borrow a substantial sum as a cash advance. Leading lenders often provide a 10% discount and the remainder as a loan. Overdraft It is a credit line provided by banks to many firms. You may use this service if you have a solid relationship with your bank. An overdraft facility enables you to withdraw money from your account even if the balance is zero, but it is limited to a certain amount. You can simply solve your working capital difficulties with such a line of credit. However, the interest rate on this loan facility is substantially higher than others. Loan against a fixed deposit It’s a secured loan that asks you to put collateral in your FD account. The amount you may borrow as a commercial loan is often a proportion of the outstanding balance on your FD. Furthermore, interest rates on such loans are somewhat higher than FD rates. Reasons to Get a Working Capital Loan A commercial loan has nearly limitless applications. It may improve cash flow and pay off utility bills, wages, rent, or stock. The following are some more reasons to get a commercial loan: 1. Immediate repairs Things fail at the worst possible moments, mainly if you operate a small firm. A commercial loan may relieve money stress by enabling you to repair or replace faulty tools to avoid downtime. 2. Take a perk out of a situation A commercial loan might assist you in financing a firm opportunity that you should not have to pass up. Opportunities like these might include purchasing products at a reduced cost or purchasing a tool that reduces labour expenditures. Although the perks are long-term, a working capital loan might aid in the immediate term. 3. Seasonal variations Every firm has peaks and troughs throughout the year. Whether you need a loan for stock, payroll, or other needs at particular periods of the year, knowing the option is accessible is reassuring for firm owners. 4. Promoting the firm’s growth A commercial loan may aid with a marketing campaign, growth, repair, or anything else that will take your firm to the next level. Unlike loans from banks, this sort of loan has no constraints on how the money may be used. Firm owners must ensure that adequate funds are available to keep operations running. There may be unforeseen bills sometimes, but a commercial loan can help make things easier. It is critical to have adequate funds to weather idle periods or slow-paying consumers. What Papers Are Needed to Apply for a Working Capital Loan? Here are the basic papers needed for a working capital loan: Papers for proving one’s identity, age, and address are included in the KYC process. PAN cards, Aadhaar cards, driver’s licences, passports, and others are generally accepted IDs. Firms’ registration papers include proof of firm registration, GST registration, partnership agreements, leasing agreements, firm PAN cards, etc. For the past six months, the firm’s current account statement IT gains for the firm Details about any debts Who Can Get a Working Capital Loan? The working capital loan is open to any firm providing vital supporting papers. Some lenders may impose different eligibility conditions, such as the need for the firm to have existed for at least six months and a certain amount of turnover. [B-02] Conclusion Working cash is the lifeblood of a firm. Every year, healthy working capital adds to expansion plans. Any misuse of working capital, on the other hand, leads to losses and a decline in the firm. It may be due to a lack of focus from people or a shortage of funds. As a result, the only way to deal with it is to obtain a working capital loan and cover daily expenses. This loan is used to fund daily operations rather than develop the firm. This means that it pays for both human and current capital. Follow Piramal Finance for recent commercial loan updates, daily blogs, and articles.
08-11-2023
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Business Loan

Understanding the Different Types of Working Capital Loans

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

Types of Mutual Funds – Best Mutual Fund Schemes in India

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

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

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

UPI vs. NEFT: All You Need To Know

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

What Are the Key Factors While Choosing a Personal Loan?

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