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Home Loan

Most Recommended Smart Ways to Manage Your Home Loan EMI

Have you been searching for the best way to manage your home loan EMI? How precious is managing your money? How do you choose the best method to manage your EMI loans? We have the most suitable solutions for your questions. Here, you get to know some of the best ways to manage your housing loan EMI. Here we learn about the consequences of some effective ways to lower your home loan EMI. [B-01] Smart ways that help you manage your home loan EMI Good money management For newly married couples and families, taking out a home loan might be a strain. It’s crucial to choose wisely when it comes to your money while taking out a home loan. Calculate and consider whether accepting the credit is appropriate for the family’s support. Keep track of all your investments. If there are any investments that you believe are superfluous, you should just close them. This will enable you to concentrate more on your mortgage. Payment in part Partial payment is a better choice, but not many people are aware of it. As a result, in a partial payment, you make monthly fixed payments to your home loan rather than the EMI. This lowers the cost and duration of the home loan as well. Select a mortgage with reasonable interest rates. This is another smart way to make it easy to pay your EMIs on your home loan. The EMIs on a home loan will be easier to pay if the interest rate is low. So, before picking a home loan, you should look at the interest rates and offers from other lenders. If you have a good credit score and have known your banker for a long time, you can use this to your advantage and ask for a lower interest rate. In this way, you can bring down the cost of your mortgage. Change the interest rate to one that is lower. Keep an eye out for changes in the way interest rates move and stay informed. As soon as you see a drop in your interest rate, you should think about switching to one that is lower. In general, different banks cut their rates at different times depending on when the interest rate resets. If your lender has a large reset interest band, even if other banks start lowering their rates, you may still have to pay a high-interest rate for a while. In essence, the magic is in knowing what’s going on in the market. If you switch to a lower interest rate than the one you have now, you will pay off your home loan faster. Investigate before applying Choosing the right lender and figuring out the right amount for your home loan in advance are two smart ways to handle your home loan EMI. When the size of a home loan goes up, EMIs tend to go up as well. Decide how much you can afford to pay each month. Then look for lenders who offer better deals based on that amount. Even a small drop in interest rates can be a relief in the long run. Before picking a home loan programme, you should think about both the pros and cons of flexible and fixed-rate loans. Always make your home loan payments on time. Your credit score will be impacted by unpaid EMIs, and you will be penalised. Such defaulters are noted by lenders. They also give the credit bureaus this information. So, one of the wise suggestions for managing your home loan EMI is to avoid falling into such a questionable group. Speak with your lender to request an EMI break if your finances have suddenly suffered for whatever reason. In some circumstances, lenders could permit their clients to postpone making EMI payments for a shorter period. Reduce the burden through refinancing. Replacing an existing home loan with a new one because the new lender offers a better term is the main goal of refinancing. Refinancing home loans is a common practice among borrowers to reduce EMIs, shorten home loan durations, or even change the program’s features altogether. A processing fee will be charged for this transfer, though. Therefore, determine whether the money you will save in the long run will be greater than the extra expenses you would face now. Keep your paperwork organised. Always keep an eye out for and keep your key financial paperwork current. Your numerous home loans will be simpler to manage as a result. [B-02] Summing-up This article’s goal is to provide a thorough analysis of crucial considerations when choosing the best method for managing home loan EMI. As we all know, managing your home loan EMI is very important. You must decide how to best manage your home loan EMI. If you want to handle your home loan well, you need to learn how to handle money. Take out only what you can comfortably pay back, and do everything you can to pay off your mortgage and other debts as soon as you can. It’s important to think about the things listed above before deciding which method to use. Also visit Piramal Finance for more in-depth, educational articles.

08-11-2023

Investment

What are the Factors to Keep in Mind While Choosing a Good NPS Scheme?

Are you a retired employee or nearing retirement? Are you thinking of applying to the NPS scheme? Do you want to grow your money? Have stable returns? Read about the National Pension Scheme to learn more! The National Pension Scheme is an Indian government initiative. The NPS plan was designed for employees who want to ensure their financial security. It reduces the investment risk. The National Pension Scheme also provides good returns. There are a lot of perks to this pension scheme. You should think about these things before deciding on an NPS scheme to apply for. [B-01] What is an NPS account? The National Pension Scheme is a programme created for retirees who want financial stability. The NPS scheme was launched in 2004 only for government workers. NPS became available to the general public in 2009. Those between the ages of 18 and 65 have the option to invest in the NPS scheme. Your funds will be invested across four different asset classes. Upon maturity, you’ll have a reliable source of income from which to meet your obligations. Under NPS, the pension scheme is split between two separate accounts, Tier 1 and Tier 2. Tips to Keep in Mind Before Investing in NPS Scheme The National Pension Scheme is immune to market volatility. There are still a few things you should know before investing in an NPS scheme. A New Pension Scheme to Replace the Old The previous pension schemes for government employees in India were replaced with the National Pension Scheme. It may not be as profitable as older pension schemes. Limits on withdrawals In the case of a Tier 1 account, no withdrawals are permitted until maturity. Withdrawals in one lump sum are permitted only under special circumstances, like: Marriage of offspring Spending on college education Treatment for life-threatening illnesses Building and construction: It’s vital to note that you have to wait until your Tier 1 account is at least 10 years old before you can make a partial withdrawal. You can only make a partial withdrawal from your Tier 1 account three times. Withdraw Taxes at Maturity Individuals can take out 60% of their investment upon maturity under the National Pension Scheme. The remaining 40% is used to buy an annuity. But you’ll have to pay taxes on that 60% withdrawal you made. Earnings from annuity purchases are still taxed. For each individual, only one PRAN There is a strict limit of one NPS account per person. As a result, each individual should only have one PRAN. Financial Resource Limitations Investment caps are also in place under the National Pension Scheme. This cap has been established to protect the individual’s ability to meet their other financial obligations. The Return on Investment from NPS Is Affected by the Market There are four distinct investment options available to NPP participants: equity, government securities, corporate bonds, and alternative investment funds. The rate of return used here is based on current market conditions. Your NPS returns may suffer if the market takes a severe hit. Equity Most of the money in the NPS scheme is invested in the stock market, which offers a high risk but a potentially great return. Financial Obligations of Businesses In this case, investors usually put their money into corporate bonds or other fixed-income securities. Investors should expect a return on their money that is roughly equal to the amount of risk involved with this profile. Governmental Debentures The fund only purchases U.S. Treasury bonds and other government securities. These are what are known as “low-risk, low-return” funds. Different Types of Investment Funds This type of investment includes things like real estate investment trusts, mortgage-backed securities, infrastructure investment trusts, and so on. The active fund permits shareholders to keep as much as 75% of their capital in equities and 5% in alternative investment vehicles until age 50. After age 50, the equity part will decrease by 2.5% every year, reaching 50% at age 60, even if you are very aggressive with your investments. Younger investors would benefit most from the increased stock allocation. But a conservative investor only needs to own government and corporate debt. Option-based NPS Auto-Selection Investors who want their money spread out among various asset classes will find the auto-selection NPS most useful. The money allocation starts with a high equity portfolio. This starts at a young age. It diminishes the equity instruments as the subscriber approaches retirement age. The Aggressive Life Cycle Investment Fund Seventy-five per cent over thirty-five is the maximum allowed for equity allocation. From there, it declines to 15% by the time you’re 55. Mild life cycle investment fund Up until age 35, a maximum equity allocation of 50% is allowed. By the time a person is 55 years old, the number drops to 10%. Life Cycle Fund with a Conservative Attitude The top ceiling of equity allocation is 25% up to the age of 35. By the time you’re 55, it’s down to 5%. The above are the three alternatives available to the subscribers in the “auto-choice” category. At the end of each year, the portfolio is rebalanced. Equity, corporate debt, and investment securities are purchased using the available investment budget. [B-02] To summarise The purpose of this essay is to present a comprehensive study of factors to keep in mind before choosing a good national pension scheme. To grow your money, invest. Consider the NPS scheme. Before beginning an investment scheme, research the scheme and its provider. Leave no National Pension Scheme policy unread to avoid confusion. Start planning your post-retirement finances by learning about NPS. If the benefits meet your risk profile and investment goals, consider NPS. If you want more equity exposure, there are various mutual funds for a variety of investors. Also, visit Piramal Finance. It has more in-depth, finance-related articles. Keep reading to know more about finance and how one can grow money!

08-11-2023

Personal Loan

Situations in Life Where an Instant Personal Loan Can Be Beneficial

To efficiently handle your monthly income, you must engage in financial planning. And on top of that, there are plans you want to take advantage of. For example, you want to finance a marriage or plan a family vacation. But you need to learn how, and although you prepare for unexpected events, you still have to make tough choices about your money. An instant personal loan might be a lifesaver in such a situation. It can help you deal with a financial emergency by giving you access to additional money within 24 to 48 hours. You can also make interest-free monthly payments this way, even if you don’t have a credit card. [B-01] An Alternative to Cash Advance Loans If you require immediate cash, a personal loan rather than a payday loan can definitely assist you. Payday loans often have a repayment period of two weeks up to four weeks, or until the borrower’s next paycheck is received. Loan repayment deadlines are routinely missed because of the quick turnaround time. The borrowers renew most of the loans, which then accrue more interest on the total instant personal loan. It will result in a larger interest bill. Here are seven instances where you can apply for personal loans. Budgeting for Healthcare Debt can quickly accumulate in the event of an unexpected medical emergency. Your health insurance plan may cover a portion of the bill, but insurers rarely pay for unexpected medical care. A quick personal loan might help cover the basics in this case. In such a dire situation, prompt access to finances is essential. When money is tight, a loan from the bank might be a lifesaver. However, submitting a loan application to a bank might take some time. Instead, pick a website that will let you apply for a personal loan on their site and deposit the money into your account within two business days. Relocation Costs Moving across town can set you back a lot of money. So to help yourself, get an instant personal loan to cover your relocation costs. An instant personal loan can be used for various purposes, including paying for the packing, transporting, and storing of your household goods, as well as covering the cost of moving your vehicle across the country. As a result, neither your savings nor your emergency fund will need to be used. Budgeting for Weddings To pull off a family wedding requires a significant investment of both time and money. These costs typically exceed your budget and force you to look for alternative sources of financing. Not getting the required funds promptly might frustrate you and cause you to postpone your wedding preparations. In a pinch, a fast, instant personal loan might be your savior, allowing you to finish the wedding planning without adding any further burden to your life. Savings Account Sometimes, more is needed even if you exercise extreme caution with your money management. Examples in this category include household expenses and the education of kids. However, you can recover from this temporary setback and get the rest of the month back on track with the help of a small instant personal loan. Home Improvement Renovating your house might cost you a lump sum, and applying for a personal loan is the only way to do that if you don’t want to tap into your fixed deposits. You can receive an instant personal loan for that, and you may use the money you get from that loan to make improvements or other alterations to your residence. Vacation You might have planned a vacation with your family, but vacations are costly. At times, your savings might not be enough to fund the trip. This can delay the process and prevent your family from having a really great vacation. You can take out an instant personal loan. It will give you the finance you need, and you can easily repay it in small installments. Expenses Related to Festivals Indian festivals are known for their luxury. Some events may hold more meaning for you and your loved ones than others. However, festivals sometimes have hidden expenses that you should factor into your annual budget. An instant personal loan may be used for everything from buying gold jewelry to buying party supplies without worrying about draining your savings. You may choose EMI with a fast personal loan, even if you don’t have a credit card. Therefore, you may select a loan period that works for you and pay back the money over time. [B-02] Conclusion An instant personal loan is typical financing tailored to the specific needs of borrowers like you. It provides the financial breathing room to deal with life’s curveballs and regain monetary footing. Still, caution is warranted, as is adherence to the standard practices of responsible borrowing, such as paying EMIs on time and regularly keeping tabs on credit scores. By taking these easy steps, you may build a credit history and increase your chances of being approved for an instant personal loan with higher credit limits. Visit Piramal Housing Finance for more details!

08-11-2023

Other

Small Business Ideas for Women Entrepreneurs in India with Low Investment

We are moving to a progressive society where women are on par with men in all respects. Women nowadays are more career-minded, talented, and bright. However, the development of women entrepreneurs in India has been sluggish compared to other nations. Still, the transformation appears imminent. Women’s increasing ability to start their own businesses is having an impact on the nation’s economy. There is a growing number of successful female entrepreneurs in the fashion, media, and interior design sectors. Several challenges are specific to new ventures. Most women entrepreneurs in India are the primary breadwinners in their households, but many also secretly have entrepreneurial aspirations. These would-be entrepreneurs might use some advice on how to come up with a workable business plan. Some concepts are obscure, some fuzzy, while others are too unbelievable to be embraced. No, we do not intend to give up our dreams. These frugal small business ideas for women entrepreneurs in India are great to start with and will assist them in developing their businesses over time without leaving their houses. [B-01] Fashion Designing Businesses centered on clothing and jewelry have always been a favorite for female entrepreneurs in India. Do you like designing and sewing your garments? If this describes you, you might make a killing by helping other people realize their inner fashionista through a business you started. As a low-overhead venture, fashion design is a great option for women looking to start their businesses. Set up a small but well-organized studio in your house, and sell your first garments to your friends and neighbors. You can build a successful career by looking at how well-known women fashion designers have done. Daycare Services The opening of childcare facilities and creches is becoming increasingly common as a viable option for women seeking to start their businesses. Frequently, working mothers search for childcare services that create a homelike atmosphere for their children. Women may launch this enterprise from their homes. Bakeries There is a significant market for bakery items. Launching and operating a successful bakery from the comfort of your home is possible if you have a passion for baking and a penchant for experimenting with delicious batters. In reality, all it takes to get a business off the ground is a fraction of the necessary know-how and a few inexpensive tools. Get started by baking some bread, cakes, and cupcakes. Use sites like Instagram and Facebook to advertise your services and solicit word-of-mouth recommendations from your network. Extracurricular Activities for Children This is different from other classes for kids, though. Parents of today (millennials) are increasingly pressed for time, both at work and home, and as a result, they are less likely to take their kids out for fun activities. They always seek new methods to improve their children’s lives, such as storytelling classes, do-it-yourself arts and crafts, creative writing, and spiritual growth. The majority of women have innate skills when it comes to taking care of children. These classes are open to everyone willing to learn, and no prior experience is necessary. As a bonus, starting online courses from the comfort of your home is easy, and employees have a great deal of leeway in scheduling. You may boost awareness of your work by telling your friends and family about it. Social Event Organizer The celebrations continue to grow in scale and splendor. People enjoy celebrating special events, such as birthdays, baby showers, farewell parties, weddings, and corporate functions, with a bit of extravagance and without having to worry about extra hassles. This is where the event planner comes in. This is a great place to begin if hosting parties at home is something you enjoy doing. Photography Some professions, like photography, are propelled solely by the need to create. It doesn’t take long to rise to fame if you have a talent for photography. Nowadays, with the help of digital technology, even amateur photographers can take pictures that look like a professional took them. Having an active profile on platforms like Facebook and Instagram is sufficient for widespread recognition. A photographer’s initial outlay of capital is for the purchase of necessary gear. Photography is now one of the top home-based businesses open to women entrepreneurs in India. Cataloging and Selling Goods Online With the help of online marketplaces, you can buy and sell goods without ever leaving your house but still get your errands done. With the advancement of technology, previously inaccessible resources are now within everyone’s reach. Another option for women entrepreneurs in India is to sell their wares on online marketplaces like Amazon and Flipkart. In today’s economy, women can showcase their talents and earn money through online marketplaces like Etsy. Vendors sell a wide variety of goods, including soaps, candles, and unique handmade creations. If you can prove your creativity, you will be compensated quickly. That’s the whole deal. Cooking A majority of Indian women tend to be excellent cooks. They are driven to be better cooks by their desire to provide their families with nutritious and tasty meals. A lot can be learned about new flavors and textures by merely experimenting in the kitchen. One of the most frugal ways for women entrepreneurs in India to start their businesses is through the culinary arts. Initiate your culinary career by enrolling in cooking classes and posting photos of your culinary creations on social media. Providing food delivery services from your kitchen could be a simple way to start your own business. [B-02] Conclusion Deck out the area with toys your children have outgrown and turn it into a play zone for toddlers. An eye for detail and compassion for children (women are merely equipped with these senses) are all that you need to transform this small business idea for women entrepreneurs in India into a prosperous one. Consult a finance expert at Piramal Housing Finance for more queries. They will gladly assist you.

08-11-2023

Bonds

Sovereign Gold Bond Scheme: Invest in SGB Online

Sovereign gold bonds are gold bonds issued by the Reserve Bank of India (RBI) on behalf of the Government of India. This sovereign gold bond scheme is offered in increments of one gram of 999.9 fine gold, with the value of each unit determined by the gold’s weight in grams. An average gold price at the end of business on the last three trading days before the subscription period is used to set the pricing. The India Bullion and Jewellers Association Limited (IBJAL) publishes the last prices of the day. The discounted price is calculated using the same most recent base data. A sovereign gold bond is convenient to invest in and keep track of thanks to its low interest rate of 2.5% per year, paid semi-annually. In a given fiscal year, an individual may only buy up to 4 kilograms, whereas a trust can buy up to 20 kilograms. No investment in SGBs may be made without a valid PAN card. [B-01] How does SGB work? The RBI issues multiple tranches of SGBs throughout the fiscal year. Banks, brokers, the mail, and the internet are where one may purchase these assets. To entice traders to purchase SGBs over the internet, a discount of INR 50 per gram is offered. Remember that every year the RBI issues a brand new series of SGBs for purchase by the public. If you have yet to receive the most recent issue, you can always hear when the next one will be released. The bonds can be purchased in paper form, electronically, or both electronically and physically. Purchasers of these bonds can have their Demat accounts credited with ownership upon request. RBI will then keep the bonds in their records while dematerializing them. Following allocation, dematerialization can also take place. Those who don’t want to buy units from the RBI directly can do so on the secondary market, which consists of stock exchanges. What are the benefits of investing in SGB? People looking to buy gold only on financial grounds may wish to explore SGB. SGBs protect both the gold’s purity and the safety of their investors. Because these bonds are digital and stored in the investor’s Demat account, they may reduce the need for physical storage of gold, which may be costly. The 2.5% interest rate makes this alternative attractive since bondholders get a passive income stream based on their gold holdings, unlike physical gold. In the current economic climate, these bonds would make wonderful gifts. Since there are no taxes on the capital gain at maturity, these bonds are good for long-term investors. Risks associated with SGB Loss potential exists if the gold market price exceeds gold’s cost. Investing in sovereign gold bonds is not immune to this risk or any other type of investment. The RBI assured investors that they would never shed more gold than they were given. What should you know before investing in SGB Exit Options & the Risks Involved The tenor of the series is fixed at eight years from the date of issuance, raising questions about the RBI’s early redemption option after five years. It is possible to cash in a coupon on the day it is paid. A month before the coupon payment date, investors only need to contact the appropriate bank, post office, or agent. And they may always redeem some of their stock (the minimum quantity being one gram). Bondholders’ accounts are promptly credited with the redemption amount. These bonds can be bought and sold on stock exchanges through demat accounts if kept in demat form. However, the price at which bondholders can sell their notes will depend heavily on the liquidity of the particular series. Taxes An individual’s understanding of taxes is crucial before making a sovereign gold bond investment. The government of India created SGBs so its citizens could more easily invest in gold. It provides a unique tax benefit. Under the sovereign gold bond program, the bond matures in eight years. Although there is no taxable gain on the maturity amount, there may be a taxable gain on any sale before maturity, depending on the time the investment was held. It should be noted that the tax exemption applies to bonds acquired through the stock market, which is considered a secondary market. If you buy a sovereign gold bond on a stock exchange, the deal is considered a transfer instead of a redemption, and you become the new bondholder. When the bond matures, you will receive a tax-free payment. But if you sell a bond before it matures on a stock exchange, you’ll have to pay capital gains tax on the profit. These short-term payouts will be added to your yearly income and taxed at your regular rate. Long-term capital gains (LTCG) are realized when an investment is held for four years or more. This benefit is subject to a 20% tax rate with indexation benefits and a 10% tax rate without them. There is a 2.5% annual interest rate attached to these bonds. Each installment is due every six months. The interest accrued on this sum is exempt from withholding. When your taxable income is subject to taxation, it is taxed at the rate specified by your tax bracket. Collateral Usage The third benefit of purchasing SGBs is that they can be used as collateral for loans. The fact that banks are willing to take SGBs as collateral lowers the cost of loans and helps people who would otherwise buy physical gold to protect themselves from economic uncertainty. The loan-to-value (LTV) ratio is similar to that used in conventional gold loans, so investors can be reassured that the product will be liquidated before its time. Like loans secured by deposits, the financial institution that receives the sovereign gold bond loans it without keeping any interest revenue for itself. Instead, it sends it on to the true beneficiary. [B-02] Conclusion SGBs are developed to facilitate gold investment. Although it is not designed for trading, there are tax benefits at maturity. That’s why most people who invest in these bonds do so for the long haul. SBG’s low trading volume on the stock market is further proof of this. It’s important to weigh the pros and cons of investing in SGBs before buying any, whether through the stock market or during the issuance period. Those interested in purchasing a sovereign gold bond can do so through the stock market at a discount. Remember that SGBs are a great way to diversify your holdings and add gold to your portfolio. But before you put money into them, make sure you know everything there is to know about them by consulting Piramal Housing. They are one of the best financial institutions.

08-11-2023

Personal Loan

Some Useful Tips for Personal Loan EMI Management

A personal loan might be a lifesaver if you find yourself in a monetary bind and need quick access to funds. Unlike other types of loans, personal loans do not require you to put up collateral. Therefore, a borrower doesn’t have to purchase any collateral to get a loan. The money from the loan may be used toward whatever you’d like, whether it’s paying off your credit card debt or making some much-needed house repairs. Processing a personal loan requires less paperwork. As a result, the demand for these loans is far higher than any other kind of borrowing available on the financial market. Most people are fine with getting a personal loan, but maintaining the monthly equated monthly installment (EMI) payments might be challenging, for which a personal loan EMI calculator can be beneficial. Since most people are so consumed with their day-to-day responsibilities, they often need to arrange the repayment of their loans, which is not a financially sound decision. Your ability to prepare and manage your future finances may be severely impacted by your inability to keep up with the monthly EMIs on your loan. To avoid this, consider the following tips for dealing with EMI payments on a personal loan by using a personal loan EMI calculator: [B-01] Evaluate your repayment capacity Determining whether you can pay off the loan is the first step in streamlining your EMI payments. Make sure you have a good understanding of the personal loan interest rate and the different repayment options that the lender provides. You may estimate your monthly EMI payments using these numbers, which will help you organize your finances more efficiently throughout the loan tenure. Additionally, many banks and other financial institutions provide personal loan EMI calculators online, with the assistance of which borrowers may compute their monthly EMIs. This may assist you in making better choices about your finances and the repayment of your debts. By using these personal loan EMI calculators, borrowers can determine whether they will be able to afford the amount of the EMI during the loan tenure. Remember to put away a sufficient amount With sufficient money in the bank, it is possible to achieve financial security. These savings come in handy if you ever find yourself in a situation where you do not have enough money to cover the EMI payments on your loan. Your gold, stocks, fixed deposits, and other valuables may be liquidated quickly to cover your EMI obligations. Having a financial safety net also comes with a host of additional advantages. If a significant portion of your paycheck goes toward paying EMIs, having an emergency fund can help you make ends meet when there are other, more pressing bills. Because of this, there is no reason for you to attempt to negotiate for a more reasonable EMI. Get your spending under control by making a plan Your EMI payment should be between 50% and 60% of your gross monthly income. The margin above error ensures you will not have to skimp on any of your other regular expenditures. However, if your EMI payment exceeds the maximum, it might affect your monthly expenses. You can find out by using the personal loan EMI calculator. In addition, the majority of your requests will have the effect of decreasing your revenue. Still, it doesn’t mean you have to give up your current way of life. When it comes time to repay a loan, cutting down on frivolous spending is essential. Reminders once the EMI payments have been made Setting up recurring monthly reminders that alert you to the due date of your EMI payments is an absolute necessity if you want to guarantee that you will never be late with these payments. These notifications are meant as a gentle prod to ensure that you check your bank account to validate that the EMI payment can be deducted. If you are concerned that you won’t be able to keep up with the scheduled payments for your EMI management, check on the personal loan EMI calculator. Consider negotiating with the lender to increase the payments. Maintain a strong CIBIL score The Credit Information Bureau of India (CIBIL) score is one factor that is taken into consideration when determining the creditworthiness of a prospective borrower. Your credit score is a three-digit number indicating how creditworthy you have been in the past. Outstanding performance on the CIBIL scale is typically defined as a score of 700 or higher. When customers have high CIBIL scores, the approval process for personal loans is easier. Borrowers with excellent CIBIL scores can access various loan options, including low-interest personal loans. In addition, having a high CIBIL score demonstrates to your lender that they can trust you with their money. Therefore, the lender may agree to the borrower’s request to extend the loan term or the due date if the borrower has an excellent CIBIL score and a track record of making payments on time during the loan tenure. Increase your loan’s duration The loan tenure and the EMI you pay are inversely related. When the loan period is longer, the monthly payment (EMI) is lower, and vice versa. To avoid EMIs being a strain on your budget, you can extend the length of your loan while applying for a personal loan. To keep track, use a personal loan EMI calculator. You could reduce your EMI by a significant amount, allowing more flexibility in your monthly budget. [B-02] Conclusion You must make your loan EMI payments on time. If the borrower consistently falls behind on their EMI payments, it is possible that their credit rating may be significantly affected. Consequently, borrowers may have difficulty obtaining credit when they need it. Additionally, it is conceivable that the borrower will be liable for paying any late fees or penalties that the personal loan lender may assess. Check the personal loan EMI calculator for details. You can also consult financial experts at Piramal Housing, and if you want to manage your loan EMIs better, you are highly advised to take these tips and implement them effectively.

08-11-2023

Gold Loan

What are the New Norms for a Gold Loan?

Gold is no longer just a luxury item owned by a select few socioeconomic classes. It is currently one of the most highly prized commodities, and due to its rising costs, it is one of the most highly traded commodities. Gold has aesthetic, economic, and cultural importance. Indians consume it in many ways, such as through gold bars, jewelry, and coins. Usually, there has been an increase in research about gold loans. Also, the number of people looking to sell their gold jewelry for cash in times of need is increasing. Apart from all other basic information about gold loans, you must be aware of the new rules and regulations about gold loans that exist in the economy. [B-01] How Easy is it to Access Gold Loans? To access various gold loan facilities, you must first find a gold investment company that is locally based. You can find out if one in your area is licensed to provide this service. The only thing that you’ll need to do after this is read their website. Most of these companies will have a website, and the websites are not just for show. These websites contain plenty of helpful information about how gold loans work and what needs to be done by the borrower if they want to use them. On the website of a gold loan company in your state, you may notice that a significant emphasis is put on how the money is received in exchange for your gold. Some companies allow their borrowers to invest with this money, while others do not. But remember, if they allow it, they may charge an additional fee of 10% of the amount borrowed to be deposited into another account. If you locate a local gold loan company that allows you to make investments, you can use your funds to invest wisely in them. What is a Gold Loan? The gold loan works like a pawn shop with some key differences. Your gold is stored in their vault, and you are given a receipt for it and told how much you could borrow against your gold’s value. The money received in exchange for gold can be used for any purpose; however, it costs an extra fee if you want to use it for an investment opportunity. This fee is not to exceed 10% of your original amount. The borrower will receive the principal amount but no additional funds. Borrowers seeking to meet their immediate or long-term monetary demands may apply for a gold loan or a loan against gold, a secured loan. The borrower is offering up their gold jewelry as security in this instance. Typically, a proportion of the value of the gold pledged is used to determine the loan amount, up to 75%. You must repay the loan in installments. You will receive your gold back once you have paid the loan and interest. Affordable gold loans are available from nationalized banks, commercial banks, and NBFCs. Your gold loan may have an annual interest rate between 7% and 29%. It, however, differs from lender to lender. A gold loan is also helpful to cover a short-term credit need. It could be paying for your child’s schooling, a medical emergency, a family wedding, etc. It is usually better to take a gold loan than to sell your jewelry. Further, EMIs are a payment option for gold loans. Even better, you can pay the interest in full upfront and repay the loan’s principal at the end of the term. New Gold Loan Norms Introduced by the RBI The Reserve Bank of India (RBI) recently changed the gold loan regulations. It has made it easier for lenders to offer more money as a loan against jewelry with easy returns in the form of gold. The RBI raised the loan-to-value ratio through its regulatory statement in August 2020. It ranges from 75% to a maximum of 90%. According to the RBI’s rules for gold loans, lenders, including banks and non-banking financial institutions, are permitted to give up to 90% of the gold jewelry’s value. It strictly demands that the loan against gold jewelry be used for non-agricultural purposes. For borrowers who find it challenging to repay personal or company loans, the modification in the loan-to-value ratio for gold loans is a blessing. The LTV value was changed, allowing borrowers to borrow more money against the same amount of gold. Banks were permitted to import gold or participate in the gold monetization scheme. They could offer gold loans to jewelry exporters and manufacturers, with the repayment of these loans being made in Indian rupees. However, the RBI has since announced the new norms after the current notification. According to a recent RBI statement, physical gold can now be used to pay back gold (metal) loans. It is being hailed as a significant breakthrough, particularly in business and bullion. The move is anticipated to aid in promoting Indian refined gold. Plus, assist jewelers in covering their debts with gold holdings. Only prospective borrowers will have access to this option. As per RBI regulations, the loan agreement must expressly state that the borrower can use it. Also, it must specify the standard of gold that is needed. The refiner has to pay back the bank with Indian gold delivery standard metal that was made locally. What Are the Gold Loan NPA Norms in India? NPA norms for gold loans in India are a document that lays down norms and practices followed by the National Personal Asset Authority. It guides the industry in deciding how to value gold and other financial assets. Hence, they do not just operate as an authority but also work with their peers across the globe. Gold is an asset to many individuals because of religious beliefs, cultural and social reasons, and many more. Some people consider gold a good investment instrument due to its fluctuating prices. Usually, buyers wish to have gold as an investment or hedge against adverse market events. Gold is sometimes considered an instrument of value preservation or a currency. It does not have a fixed nominal value and is traded at its market price. Hence, the idea of gold loan NPA norms is to fix the value of gold. [B-02] Conclusion With so many benefits, a gold loan is among the finest ways to handle any unforeseen financial circumstances. The fact that you must mortgage your gold to the lender is the sole drawback of a gold loan. Therefore, close the loan properly and make the repayments on schedule. Additionally, there are several new norms for gold loans that we have stated above. You must know this before applying for a gold loan. So, go through that. Further, you may check out Piramal Finance to learn more about gold loans and explore their products and services.

08-11-2023

Home Loan

Pros and Cons of Getting a Home Loan for Married Couples

Borrowers can take out individual or joint loans to buy their dream home when they need a housing loan. In the case of a single application, the borrower must submit the documents on their own, but in the case of a joint application, you must submit the documents of both applicants. Borrowers can split the home loan amount and make payments with a shared loan. When a property is owned separately, it is only registered in the name of one person, and that person is responsible for all the payments on the property. The joint assets become the joint loan for those who want to borrow money. In this case, if the borrower doesn’t pay back the loans, the owner and co-owner, whose names are on the title, could be added to the list of debtors. If both people in a married couple have always worked and brought money into the home, it’s often a good idea to get a loan in both of their names. This way, if one person in the couple can’t qualify for the loan, the other person could take on more responsibility for paying back the home loan. This is good for both the borrower and the lender. [B-01] What is a Joint Home Loan? Home loans differ from other loans because you can apply for them together. By saying “joint mode,” you mean that more than one person could apply for a loan at the same time. There can be no more than six co-applicants on a home loan. But they must all own the property in question together. On the other hand, a married couple can apply for a mortgage even if they are not co-owners. Most mortgages allow siblings, parents, or spouses to be co-applicants. Co-applicants who are not married and female family members, friends, or business partners unrelated to the applicant are not allowed. The Pros of Getting a Home Loan Reduces the burden of liability When two or more people own a property together, they are responsible for paying the installment. When married couples have children, it’s often best to own the property together. The couple can benefit from the property and own it as if they were one person. The couple is free to choose the house, the budget that fits the house, and the interior design. Also, if one of the couples loses their job, the other co-owner can keep making payments to keep full ownership of the land and keep the lenders from fining them. Increases the number of women ownership to own property India is a male-dominated country, so all decisions are made by men. Unlike women, men usually get a larger share of the property than women do. Also, there are many more men in the working class than women. Because of this, there is a big difference in wealth between men and women. The number of candidates who buy homes in their names is going up at the same rate as the number of women working. India and the state government’s efforts to give women more ownership rights have led to good results, like women taking part in daily tasks and buying their dream homes independently. Helps in the mutual benefit of taxes The property that is jointly owned and has one female co-owner is eligible for registration benefits and will have lower returns applied to it. PMAY [Pradhan Mantri Awas Yojana] borrowers are eligible for higher subsidy advantages for purchasing a property, including one female co-owner. The Indian government encourages women to get loans in their own names and buy real estate on their own or with other people. The Cons of Taking a Joint Home Loan Both applicants would lose ownership in the event of a dispute No matter how much money they put into the apartment, if the joint owners stop talking to each other and stop paying the mortgage, the borrowers risk losing their home, and it becoming a secured asset of the bank, which would mean they both lose their homes. Conflicts with the property If a couple breaks up or gets divorced, they might not agree on what to do with their property, which could cause problems with ownership and getting back on their feet. Let’s say the payments haven’t been sent to the bank yet. In that case, both partners may refuse to do so in the event of a divorce, leading to default and arguments over who owns the property. You could also include the co-owners in the default case. It may impact both applicants’ CIBIL scores If both the borrower and the candidate default, the applicant’s CIBIL score could be hurt. This could mean that people won’t be able to get any more loans in the future. In the event of a loan default, both couples may have to pay large fines, making both couples responsible. [B-02] Conclusion At last, you might tell the borrower that she should buy the house with her wife as a co-owner to lessen her financial responsibility, take advantage of programs that help women, and save money. For the joint property to work, there needs to be a good, long-term relationship based on trust so that the right can be used, and the default isn’t always an issue. You can visit Piramal Finance for more blogs related to home loans. Look at the products and services they offer as well.

08-11-2023

Business Loan

What Are the Most Important Things Required to Apply for a Business Loan

A business loan is one of the most essential things every business needs to run well. Many people have ideas that, if implemented, could lead to the start of new, successful businesses. But because of a lack of finances, it couldn’t happen. With the help of a business loan, you can grow your business, pay for ongoing costs, and buy stock and technology. If you have never tried to get a business loan before, you might not know how to start or what documents you will need. Read on to find out how you can get started. [B-01] Things You Must Keep in Mind While Applying for a Business Loan The process for applying for a business loan is different from the one for a personal loan. Getting a business loan can be a complex process. There is more paperwork to do, and the requirements are stricter. It is important to know what needs to be done. Knowing every aspect of a business loan doesn’t necessarily qualify you to apply. So what does it do? Let’s dive into the details. Improve Your Credit Rating There may be ups and downs or errors in your credit history from time to time. If you don’t pay attention, they could hurt your credit score. So, it’s usually a good idea to check your business and personal credit files regularly. If you find any problems, you should immediately contact the credit bureau. By getting rid of the mistakes, they will fix your credit score. If your credit score is low, no bank will lend you money. Search for Every Possible Lending Option It is vital to do your research. You should make a list of banks that are willing to give you business financing. It should meet all of your needs. Check your credit history to make sure it’s in good shape. Choose the lender whose rates are the lowest. Keep Up-to-Date Accounting Records A bank is more likely to give a business loan to a company with good financial records. Lenders want to look at your capital structure, records of cash flow, and income statements to see if you can repay the loan. You should start immediately if you aren’t keeping track of these things. They are helpful when applying for business financing. Create a Brief Plan To give a business loan many banks need to see a detailed financial plan for your business. It tells people about you and what your business wants to do. The business must be clear about its goals, mission, and how it works. A strong business plan shows a lender that the business will do well. What Happens if You Don’t Have the Proper Paperwork When Applying for a Business Loan? The terms for paying back business loans are easy, and the interest rates are reasonable. So, to get a business loan, you need to have the proper paperwork. Documentation is needed to ensure that the information given during the loan process is correct. They also make sure that your business is legal. Lenders may decide the loan amount, term, and interest rate for a business loan based on how valid these documents are. If the documents are not submitted, the application may be turned down. Application Checklist for Business Loans Cover Letter You might have to send a cover letter to the manager of a banking institution to talk about your business loan application. The letter should also talk about your company, including what it does and what industry it is in. With the letter, you can ask your lender to consider your loan request and give you advice. Business Plan Lenders will want to know that your business is trustworthy and that you have the knowledge and skills to run a successful business. Include your business’s goals, competitors, past and expected income and expenses, research on the market, and plans for growth. Personal Credit Report As part of the application procedure, lenders obtain each applicant’s credit report individually. Before filing a loan application, any lender must get credit reports from each of the three credit rating organizations. You may not be approved for a loan if your credit report contains errors. Additionally, clearing this is required before beginning the registration process. Income Tax Return Applications for business loans must include the last three years’ worth of personal and corporate tax returns. Analyse Lending Options Analyzing your lending options will help you find a lender who will give you a good deal. Don’t accept proposals just because they look good without proper research. Before deciding on a lender, consider the processing fees, fees, and level of customer service. Documents Required for a Business Loan Application You must provide the following paperwork with your business loan application. For Identity Proof PAN Card. Driving Licence. Aadhaar Card. Passport. Voter ID Card. For Address Proof Voter ID Card. Driving Licence. Aadhaar Card. Passport. Business PAN Card Other Business Documents Last six months’ worth of bank statements. The most recent CA Certified ITR. Income computation, balance sheets, and profit and loss accounts for the last two years. Proof of continued existence in the form of an ITR, trade license, establishment, and sales tax certificate. Sole Proprietorship Declaration or a certified copy of the partnership deed. [B-02] Conclusion A business unit can grow with the help of a loan. The money can be used for general business costs like buying plant equipment, paying off debt, and more. A business loan is easy to get. If you meet the requirements, you can get the loan amount in a few days. All you need is the necessary paperwork for business financing. You can visit Piramal Finance for more blogs related to business loans. Take a look at the products and services we offer.

08-11-2023