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Sovereign Gold Bonds (SGBs) Know Benefits & Why to Invest

Want to learn more about the sovereign gold standard? Are you looking for the ideal investment opportunity? Do you want to discover why purchasing a sovereign gold bond scheme is better than buying physical gold? An investment plan called the Sovereign Gold Bond (SGB) offers a fantastic chance. The all-purpose Sovereign Gold Bond program offers superior returns and tax advantages. Answers to your inquiry will be found here, so long as you keep these important things in mind before investing in sovereign gold bonds. Here are some crucial factors that will increase the impact of your decisions. Let’s take a look. [B-01] Sovereign gold bonds are gold-backed government securities. They replace gold. Investors must pay in cash for the bonds’ issuance price and maturity. The investor’s gold is protected by the current market price at redemption or early redemption. Physical gold is inferior to SGB because of the reduced storage risks and costs. The market price of gold at maturity and interest are guaranteed. Sovereign gold bonds are free of fees and purity concerns for gold jewelry. The RBI’s financial records contain the bonds. About sovereign gold bonds, some key points are mentioned below : Sovereign gold bond scheme The purpose of the sovereign gold bond scheme, which was implemented in November 2015, was to lessen the demand for physical gold and convert some domestic savings traditionally used to buy gold into financial savings. As part of the Gold Monetization Scheme, the government created the Sovereign Gold Bond Scheme. In this plan, the RBI, in cooperation with the GOI, opens the issues for subscription in phases. The RBI periodically announces the terms and conditions for the initiative. The RBI will issue a press release stating the SGB rate before the distribution of each tranche. Indian Sovereign Gold Bonds are issued by the Indian government. Gold may be purchased and stored safely without the need for physical vaults. Investors are guaranteed a yearly interest rate of 2.5%. Benefits of sovereign gold bond Without storage costs or risks: Buying gold jewelry will inevitably make one worry about keeping it secure. Even storing it in a bank locker could cost money. The dangers and expenses associated with storage are removed with this kind of bond. Low danger: These bonds are issued by the RBI on behalf of the government, which, therefore, indicates that the central government supports the plan. This makes these sovereign gold bonds more secure than buying gold itself. Market-based payment: You receive the current market price if you redeem your bond early or at maturity. According to the RBI, investors are guaranteed the market value of gold at the time of maturity plus monthly interest. Bringing no claims: When purchasing gold jewellery, you must pay making fees. No capital gains tax: If you invest in a sovereign gold bond, the Indian government has waived the tax on capital gains for the purchase of gold. However, interest income will be taxed. Benefits of Indexation: If you try to transfer (leave) the bond before maturity, indexation can help you pay less in capital gains taxes. Paper gold bonds may also be used as collateral. Similar to taking out a gold loan, you can use national sovereign gold bonds as collateral to get loans from banks. Features of a sovereign gold bond According to the RBI, the sovereign gold bond plan has a few special characteristics. SGB bonds can only be acquired in grams or kilograms of gold. For this program to work, you must purchase at least one gram of gold. The highest maximum is also subject to constraints. Only sovereign gold bonds up to a maximum weight of 4 kg are allowed. It can hold 20 kg of weight if it’s a trust. Interest rate: You will get interest payments from the RBI twice a year on the amount of your initial investment. Advantages of a sovereign gold bond Online discount Long-term investment More earning Safe and secure Saves money Here are some instructions for purchasing sovereign gold bonds online: Step 1: Access your net banking account. Use the credentials to access the net banking services. It is crucial to remember that anyone making an online investment needs a valid login ID to use their bank’s net banking service. If someone does not already have a login ID, they must activate it right away to continue. Step 2: After logging in, choose “e-Service” from the top menu, and then choose “Sovereign Gold Bond.” Step 3: New users must first click “Register,” review the Reserve Bank of India’s “Terms and Conditions,” and then click “Proceed.” Step 4: Enter the necessary information for the sovereign gold bond scheme as well as the depository’s information. Step 5: Click “Submit” after completing the registration form. Step 6: The investor must select the purchasing option from the header tab after completing the registration process. Those who are already registered can bypass the registration process and go straight to the header tab’s “Purchase” option. Step 7: Enter the nominee’s information and the number of subscriptions on the new page. Step 8:To finish the procedure, the investor must enter the one-time password (OTP) supplied. Required paperwork when issuing sovereign gold bonds A voter ID card, An Aadhaar card A PAN card A TAN card, or a passport According to the provisions of the Income Tax Act of 1961, the interest on gold bonds will be taxed (section 43 of 1961). The capital gains tax that would have been due upon the repurchasing of sovereign gold bonds by an individual has been waived. [B-02] Summing-up The purpose of this essay is to present a comprehensive study of significant data regarding the sovereign gold bond scheme. We are aware of how important making the appropriate investment choice is. When investing in sovereign gold bonds, you need to use caution, regardless of whether a plan is the best option for you. Examine the features and interest rates provided by several online platforms to discover the best deal before applying for a sovereign gold bond, but most importantly, pay attention to the points mentioned above. Investment Reliable does not offer financial advice, but we do provide unbiased information and evaluations on trading, investing, and finance. Users ought to always carry out their research. Also visit Piramal Finance, which has more in-depth, educational articles.
08-11-2023
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Home Loan

What is a Home Loan Sanction Letter?

Everybody dreams of owning a house someday. With a home loan, you can come closer to achieving your dreams. In this article, you will learn more about home loan eligibility. But first, you must know what is meant by a home loan sanction letter. [B-01] What exactly is a home loan sanction letter? A home loan sanction letter is an initial letter of approval for your home loan. After your home loan is approved, a home loan sanction letter is given to acknowledge your home loan application. The letter is issued by banks or other institutions stating that the home loan has been approved. The home loan sanction letter is issued only after verifying your home loan eligibility. A home loan sanction letter is also called an “in principle home loan sanction letter.” You can learn more about the home loan application process with Piramal Finance and understand the options that suit you best. Eligibility for Getting a Home Loan Eligibility for a home loan is based on several factors: Employment: All banks or institutions provide home loans only to salaried or self-employed individuals. Age: Age is the other factor that determines your home loan eligibility. If you are younger, the terms and other conditions are more favorable. If you are older or nearing retirement age, there will be fewer chances for approval. It is based on the calculation of your remaining work years. Credit (CIBIL) Score: A credit score can make or break a home loan. If you have a healthy credit score, you will be in a safer position. A credit score of 700 or above is generally preferable. Other Financial Obligations: The lenders will also consider other financial obligations, such as any other ongoing loans or liabilities. Criminal History: Though most financial institutions do not consider your criminal history, some will take it into account before issuing a home loan. Once the bank or financial institution has verified your details, it will then determine the principal, interest rate, and repayment period of your home loan. What are the Features of a Home Loan Sanction Letter? Here are some of the key features of a home loan sanction letter: Home Loan Sanction Letter and Loan Agreement: You should not confuse a home loan sanction letter and a final home loan agreement. They are two different documents. The home loan sanction letter indicates your eligibility for a home loan. The home loan agreement, on the other hand, states the terms and conditions that your bank or financial institution has laid down. Validity: The home loan sanction letter is generally valid for up to 6 months. However, this may vary from bank to bank. Reapplication: If the validity of a home loan sanction letter expires, you do not need to worry. You can reapply for the sanction letter. However, before renewing the letter, you need to apply for the home loan again. What Does a Home Loan Sanction Letter Contain? The home loan sanction letter from banks and other institutions contains some important information. This includes: The total amount of the loan that you are sanctioned. The tenure of your home loan. The type of interest rate for your sanctioned home loan. The interest rate may either be fixed, floating, or a hybrid one. The tax benefits of your home loan. EMI details and related information. Mode of the home loan repayment. The validity of the home loan sanction letter. Other terms and conditions. The contents of a home loan sanction letter mentioned above may be subject to certain changes. Thus, they are different for different financial institutions. What are the Benefits of a Home Loan Sanction Letter? Some advantages of a home loan sanction letter are as follows: Acts as a guarantee: The home loan sanction letter guarantees your home loan eligibility, before receiving the loan amount. Important Document: The home loan sanction letter is an important document that you must submit to your builder or a developer. The builder or developer is the company or individual from whom you have purchased property. Gives prior information: The home loan sanction letter gives you prior information on your credit score. It also acts as a reminder of the EMI amount, helping you plan your expenses in advance. What is a Digital Home Loan Sanction Letter? The world has become more digital, and so has banking. As a result, banks and other institutions have made the home loan application process simpler. If a person is eligible to apply for home loan they can submit their application online. Once verified, the bank or institution will send them the sanction letter digitally. Thus, a digital home loan sanction letter can be defined as a home loan sanction letter that is received online or as a digital copy. [B-02] The Bottom Line We hope you have understood what a home loan sanction letter is, its benefits, and home loan eligibility. The good news is that you can avail of a home loan at low-interest rates with minimal documentation from Piramal Finance. You can also check your home loan eligibility with us before applying for the same. We, at Piramal Finance, will work with you to get a step closer to your dream house. You can also learn more about finance and related topics on our website.
08-11-2023
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Home Loan

Stamp Duty and Registration Charges on a Home Loan

If you intend to purchase a house, keep in mind that the price the seller has offered you does not represent the total cost of the transaction. According to Indian tax laws, stamp duty is an extra cost that all homebuyers in our country must cover to become legally responsible for their properties. When purchasing a property, it is essential to have clear, crisp paper since you will need these legal papers for a variety of purposes for a very long time. In other words, stamp duty must be paid as soon as everyone signs the sale agreement. When you register it in your name, the price you were quoted is likely to rise by a few lakhs. [B-01] What is Stamp Duty? The state government charges this cost for the paperwork required to register your property. This tax is imposed on transfers of both freehold and leasehold real estate, including residential and commercial buildings. When you pay stamp tax, the government registers your name. The stamp mark on the paperwork confirms that the paper has obtained official approval and is now genuine, which is why the fee is so named. States have different stamp taxes and registration fees. When registering a property, you are required to pay stamp duty according to Section 3 of the Indian Stamp Act, 1899. Registration Fees The ownership paperwork must be registered once stamp duty has been paid. Registration must be completed within four months after the execution date. Registration costs are payable at 1% of the market value or the agreement value, whichever is greater, up to a maximum of Rs. 30,000. How is Stamp Duty Calculated? Stamp duty is estimated depending on the property’s worth. In India, however, stamp duty fees are between 3 and 10 percent of the property’s worth. You will end up paying a large fee if the market value of your property is high, and vice versa. The rate of stamp duty depends on a number of factors, including the property’s location, gender, the owner’s age, the property’s use, the kind of property it is, and the amenities of the project. The value of the property is established by authorities using the Stamp Duty Ready Reckoner. Every January 1st, the government releases the market values. One cannot lawfully claim the property without paying the required stamp duty. Factors Affecting Stamp Duty State-to-state differences in stamp duty exist. The following variables affect how much duty is charged. Location: The stamp duty fees will be more expensive if the property is situated in an urban region compared to a suburban or rural one. You will end up paying less to have your property stamped if it is situated inside the Panchayat borders or on the outskirts of the town. Age of the owner: Almost all state governments have reduced the cost of senior citizens’ stamp duties. The age of the property owner has a sizable impact on stamp duty rates in the majority of states. Age of the property: Since stamp duty fees are computed as a proportion of the property’s total market value, older structures often have lower fees while newer structures have higher fees. Gender of the Owner: When compared to women, men spend around 2% more getting their property registration paperwork stamped. In Delhi, you are still qualified for a stamp duty discount if you agree to register the property jointly with the woman as the principal owner. The availability of this amenity, however, varies across the nation. Purpose: Comparatively speaking to residential structures, commercial buildings are subject to higher stamp duty fees. Your stamp duty expenses will differ depending on whether you are purchasing land, an apartment, a standalone home, or a villa. Does a Home Loan Cover Stamp Duty and Registration Charges? As we talk about the importance of stamp duty and how to calculate it, you should also budget for the additional costs that will be imposed on your budget as a house buyer, including stamp duty and registration fees. Banks are advised not to include stamp duty, registration, and other documentation fees in the home loan charges of housing properties to prevent the Loan to Value (LTV) Ratio’s effectiveness from being diminished, according to the Reserve Bank of India’s circular on “Housing Loans by Commercial Banks – Loan to Value (LTV) Ratio” dated February 3, 2012. These fees will be paid by the government. Your loan does not cover stamp duty or registration; each must be paid separately by the buyer of the property. Tax Benefits Stamp duty and registration fees are exempt from taxation under Income Tax Act Section 80C. Section 80C’s maximum benefit for stamp duty and registration expenses is Rs. 1,50,000. When there are joint owners, each co-owner is allowed to submit their income tax returns based on how much of the property they own. Payment of Stamp Duty and Registration Charges Purchasers may use any of the following methods to pay their stamp duty, both online and offline: Physical Stamp Paper: In this case, you buy non-judicial stamp paper from a licensed seller. E-Stamping: One of the most practical ways to pay for stamp duty is through the SHCIL website. Fanking: The majority of banks offer homebuyers franking agent services. [B-02] Conclusion Stamp duty and registration fees are typically not included in the home loan amount that the bank has approved. To take possession of your new home, you must pay these fees in addition. When registering your property, you must pay the correct stamp duty as required by law. Many people give their property a low market value to avoid paying expensive registration and stamp duty fees. Therefore, once your sale agreement is signed, registered, and the registration and stamp duty fees are paid, you are deemed the owner of the home. Explore more informative articles on Piramal Finance.
08-11-2023
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Home Loan

What is The Rate of Interest of a Loan Against Property in 2022?

Do you need a mortgage loan? With just a few clicks, you can get the money you need at low-interest rates. As a secured loan, a loan against property (LAP) has a much lower interest rate than a loan that isn’t backed by anything. Another way, a LAP loan shouldn’t only provide you with a low interest rate but also a fair appraisal of your home’s worth. LAP also has a repayment plan that suits your needs and low or no closing costs. Let’s continue the topic of the interest rate on loans against property and how to get a lower rate. [B-01] What is Loan Against Property? A loan against property (LAP) is approved as long as the lender keeps an asset as a mortgage. This asset can be a piece of land, a house, or any other place where business is done. The asset stays with the lender as collateral until the total loan against the property is paid back. Most of the time, you have up to 20 years to repay the loan. Lenders usually let you borrow between 50% and 70% of the property’s market price as a mortgage loan, which you can pay back over time through EMIs. You can use the LAP to meet your or your business’s needs. Interest Rate of LAP Depending on your profession, the interest rate on a loan against property will differ. For example, lenders charge higher interest rates on loans to salaried people than to self-employed people or businessmen. Generally, most lenders apply 11.5% p.a. interest to a mortgage loan. Interest Rates on Different Properties (LAP) Conditions Industrial Property Commercial Property Residential Property Interest Rates 9.35%-13.7% 7%-20.6% 7%-20.6% Loan to Value 50%-80% 40%-80% 1%-80% Processing Fee 0.2%-1% 0.2%-3% 0.1%-3.0% FOIR 0.65 0.65 0.55-0.65 Factors Affecting Loans Against Property Credit Score A high credit score shows that you use credit wisely and are good with money. As a result, many lenders provide mortgage loans with lower interest rates for people with high credit scores. Loan Amount Many banks set interest rates on mortgage loans based on the loan amount. Most of the time, the interest rate on loans against property up to Rs 30 lakh is lower than that for loans for more than Rs 30 lakh. Property Type Some lenders charge less interest on loans for homes owned and lived in by the borrower than on loans for commercial properties or properties that are not owned and lived in by the borrower. Women Applicant Many lenders give women borrowers a break on their interest rates, usually 0.05%. If your female family member applies, it can help you get a lower interest rate. LTV Ratio The loan-to-value ratio (LTV) measures how much of the property’s value you can borrow. Most lenders will give up to 70% of the property’s value as collateral for a loan. When you borrow less, the loan-to-value ratio decreases, making you eligible for more loans and lowering your interest rates. How to Lower the Interest Rate of LAP? Here are some essential things to think about if you want to lower the interest rate on a loan against property: Find out what the interest rate is for each type of loan. For example, it’s possible that the interest rate between Rs. 30 lakh and Rs. 20 lakh will be lower than the interest rate on a loan between Rs. 20 lakh and Rs. 30 lakh. Choose the term carefully because it directly affects the interest rate that the lender will offer. Watch out for loan providers who offer low-interest rates. Don’t fill out multiple applications with different lenders. Each application rejection will lower your CIBIL score, and a low CIBIL score will cause the lender to charge you a higher interest rate. Choose a loan amount that you can easily pay back. Documents Needed for a Loan Against Property You will have to send in the following general documents: Address proof: Aadhaar card, driving license, voter ID card, etc. Identity proof: passport, Aadhaar card, PAN card, etc. Form 16 Bank statements IT returns certificate Income proof documents Salary slips Property documents: sales deed, property tax receipt, registration certificate, building plan, etc. Steps for Getting a Loan Against Property Here is a general outline of how to get a loan against property: Choose a lender with a good reputation that has the best loan against property deals on the market and fits your budget. Fill out the lender’s website’s online application form. Type in your name, address, income, and other necessary information. Enter the details about the loan you want, like how much you want to borrow, how long you want it to last, etc. Based on your information, the lender will decide if you can get a loan. The lender will get the paperwork they need and check the value of your property. A loan approval letter will be sent to you after the lender has checked your information. You must show the original property papers before the loan is paid out. [B-02] Wrapping Up Real estate is an asset that can be used as security for a mortgage loan, whether for a home, a business, or something else. When unexpected financial needs arise, like growing a business, sending a child to college, paying for a wedding, or dealing with a health emergency, having property may help. You can get a loan quickly and easily by pledging your home as collateral. The loan against property rate has a direct impact on your finances. Its interest rate fluctuates from bank to bank, state to state, and even city to city. So check the interest rate before applying! Follow Piramal Finance for the latest news on mortgage loans, daily blogs, and articles.
08-11-2023
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Stocks Markets

What Are Bonus Shares?

Gaining a bonus or getting something for free is satisfying for consumers worldwide. Bonus shares enable that feeling in the finance sector. You can create a Demat account and generate bonus shares to increase your earnings. Demat accounts, after all, allow trading and investing from a person’s home. A Demat account is essential to hold securities directly in electronic format. It will help you invest in shares on the stock market. It is also known as a dematerialized account. Current shareholders get bonus shares at no extra cost. It depends on how many shares they currently own. These are the bank’s accumulated earnings that are transformed into free shares rather than distributed as dividends. The fundamental idea of bonus shares is to increase the cumulative number. It also maintains a fixed ratio of shares held. [B-01] Descriptive Examples For example, if Investor Y owns 200 shares of a company, and the company announces a bonus in the proportion of 4:1, then they would receive four shares for free. That is a sum of 800 free shares, and his total ownership will increase to 1000 shares. You can consider one more example. A shareholder would receive two extra shares for one ordinary share. This process happens if a company announces a one-for-two bonus share. Say a shareholder owns 2,000 company shares. When the business develops bonus shares, she will now own 1000 bonus shares, as 2000 x 1/2 = 1,000! The terms “ex-date” and “record date” are important to understand policy and benefits. Below are the instruments used when the company announces its shares to its shareholders. Record Date A record date is a time set by the company for bonus share eligibility. The company will grant shares to shareholders with shareholdings in their Demat accounts. The execution of shares will occur on the recorded date. Ex-Date The record date is one day earlier than the expiration date. In this case, an investor must purchase the shares at least one day before the expiration date. This practice helps in qualifying for bonus shares. Who Qualifies to Receive Bonus Shares? Companies issue bonus shares to promote retail participation and broaden their equity base. It is challenging for new investors to buy shares of one company when the per-share price is high—a higher share count results in a lower cost per share. But, despite the declaration of bonus shares, the total capital stays the same. The company may issue bonus shares to shareholders who held the company’s shares before the record date and the expiration date. The T+2 rolling system, where the record date is two days after the ex-date, is followed in many countries for delivering the shares. If you are an investor, you must buy shares before the expiration date to qualify for bonus shares. If you purchase shares after the expiration date, the business will not transfer ownership of the claims. Once the bonus shares are accounted for, you will receive a unique ISIN. Bonus shares will be credited to the shareholder’s account within 15 days. What Justifies a Company Issuing Bonus Shares? If a company incurs profits during this period but cannot pay dividends to present shareholders due to a lack of funds, it may issue bonus shares. Relevant companies distribute bonus shares from their earnings. This is also known as the “capitalization of profits.” Let us now think about the benefits and drawbacks of bonus shares. Benefits of Bonus Shares Investors who buy bonus shares receive several benefits. Some of these are listed below. Bonus shares give investors extra shares. This includes increasing their stake in the business and the stock’s liquidity. Bonus shareholders are not troubled by any tax effects because there are none. They are especially beneficial for those looking to make long-term investments. It is because they strengthened earnings across a wider spectrum. Individuals who own bonus shares can receive a larger dividend. This is possible when the firm declares dividends. It is because they now own a larger proportion of the company’s shares. Demerits of Bonus Shares Possessing bonus shares presents a few disadvantages too. They should be aware of bonus shares. It is because even though the financial gain will remain the same, there will be more of them since the earnings per share will decrease. From the Company’s Perspective: 1) The business does not get any cash when issuing bonus shares. As a result, it becomes harder to raise money after an offering. 2) The incentive price rises over time. It grows when a company issues bonus shares rather than paying dividends. Types of Bonus Shares There are two types of bonus shares, which are as follows: Paid-In-Full Bonus Shares Bonus shares are securities that are given out to investors based on how much ownership they have in the company. The entities that may issue these bonus shares include: A loss and profit account. Financial resources. Reserves for capital redemption. A premium security account. Bonus Shares with Partial Payments A portion of the total issue price is paid. The investor can buy partially paid shares without paying the full issue price. One can pay off the remaining partially paid share capital balance in installments. Guidelines That a Company Must Adhere to Before Authorising Bonus Shares Once bonus shares are issued, the articles of association must approve a ‘bonus issue. The company must adopt a special resolution at their meetings. This is a concern if an organization’s regulations cannot do what’s needed. In the event of a meeting, the shareholders must also approve the bonus issue. One should adhere to the SEBI guidelines. The business must ensure certainty after a bonus issue. It should ensure that the share capital stays within the authorized share capital. The Memorandum of Association’s capital clause needs amending by raising the authorized money. A business must notify the Federal Bank and get permission before issuing bonuses. Before the issue date, a company should pay the bonus shares. The shareholders will pay the uncalled amount if claims come in part. [B-02] Conclusion It is common practice to give existing shareholders bonus shares in order to meet their cash needs. Instead of issuing new shares, bonus shares do not increase the company’s profits. Access an open Demat account immediately to start trading and investing in stocks. You can also earn bonus shares! It is crucial to conduct adequate research before making buying decisions about securities. This early research can lower your risk of suffering losses. It will also save one from other negative outcomes. Along with it, this increases your opportunity for profit. For trustworthy financial guidance, Piramal Finance is here for your service. We are an Indian financial services company specializing in retail lending. With a skilled set of professionals, our services include several options. Services include personal loans, business loans, housing loans, and other consumer-focused finance products.
08-11-2023
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Other

5 Unique Ideas to Set Up a Business in the Trading Sector

The trading sector is a dynamic and vital part of India's economy, significantly connecting producers with consumers. As part of the service sector, the country's largest industry, trading allows businesses to influence market trends and meet consumer demand innovatively. Whether you're looking to launch a new venture or diversify your existing business, exploring opportunities within the trading sector can be rewarding. In an industry where inventory management and responsiveness to changing demands are key to success, having the right resources and financing is crucial. You can easily establish or grow your business with access to business loans specifically designed for traders. Here are five lucrative ideas to help you succeed in the thriving trading industry: 1. Sustainable and Eco-Friendly Products: Trading for a Greener Future With increasing concerns over environmental degradation and climate change, there is a rising demand for sustainable and eco-friendly products. Consumers are now more inclined to purchase items that are environmentally friendly, such as reusable household products, biodegradable packaging, energy-efficient appliances, and sustainable fashion. This sector presents an exciting opportunity for businesses to enter the growing green market by trading in eco-conscious products. The options are diverse, from selling solar-powered gadgets to offering eco-friendly home decor or zero-waste products. Many people, especially younger generations, are willing to pay a premium for products that have a positive environmental impact. By sourcing and selling sustainable products, you can capitalize on a profitable market and contribute to a greener planet. The demand for these products is expected to keep rising, making this an ideal sector for entrepreneurs who want to make a difference while earning a profit. 2. Health and Wellness Products Trading: A Booming Industry The health and wellness industry has experienced significant growth in recent years, and this trend is expected to continue as more people become conscious of their physical and mental well-being. From nutritional supplements, fitness equipment, yoga accessories, and organic skincare products, there is a wide range of health-focused products that people are eager to buy. The Indian market for health and wellness products is booming, driven by factors such as increasing awareness about healthy lifestyles, a rising middle class, and a focus on preventive healthcare. Entrepreneurs can consider trading in fitness equipment, dietary supplements, essential oils, or even wellness gadgets like fitness trackers and smartwatches. With an increasing number of consumers focusing on staying fit and maintaining a balanced lifestyle, this sector has tremendous potential for growth. By sourcing high-quality products and offering them through online and offline channels, you can build a business that caters to the health-conscious community. 3. Auto Care: Capitalizing on the Rising Demand for Vehicles The automotive industry in India has witnessed substantial growth, with passenger vehicle sales crossing the 3 million mark in 2016-2017. The sector grew by 9.23% during this period, driven by a combination of factors such as higher disposable incomes, changing lifestyle choices, and the increasing demand for luxury vehicles. The potential for success is immense for those interested in starting a business in the auto care sector. The opportunities are endless, from selling spare parts to providing auto accessories and maintenance services. Currently, the auto care industry is valued at Rs. 20,000 crore and is expected to grow to Rs. 34,000 crore by 2020. This presents a fantastic chance for entrepreneurs to tap into the expanding market and offer products or services that cater to vehicle owners' needs. Trading in vehicle parts and accessories, such as tyres, battery chargers, or car cleaning products, can be lucrative. Additionally, offering services like car detailing, maintenance, and car modification can make your business a one-stop shop for automobile owners. 4. E-Commerce Trading: Expanding Online Retail Business In the digital age, e-commerce has become a major avenue for businesses to reach consumers. With increasing internet penetration, online shopping has gained immense popularity in India, especially in the wake of the COVID-19 pandemic. This presents an opportunity for businesses to establish an online presence and engage in e-commerce trading. Whether you're dealing in consumer electronics, clothing, beauty products, or groceries, e-commerce trading offers the chance to reach a wide customer base without the overheads associated with traditional brick-and-mortar stores. By setting up an online store, you can trade products directly to consumers, manage inventory effectively, and leverage digital marketing to drive traffic to your website. In the fast-evolving world of e-commerce, staying ahead of trends and continuously offering value to your customers is essential. Whether it's by providing seamless shopping experiences, offering personalized products, or focusing on customer service, a successful online trading business requires a solid strategy and access to the right resources. 5. Electronics and Gadgets Trading: A High-Demand Market The demand for consumer electronics and gadgets in India is rapidly growing, thanks to technological advancements and increasing disposable incomes. With the rise of smart homes, mobile devices, wearables, and entertainment gadgets, there are numerous opportunities for entrepreneurs to tap into the electronics and gadgets trading market. India’s tech-savvy population is eager to invest in the latest gadgets, ranging from smartphones and laptops to home automation systems and audio equipment. This market is driven by the urban population and younger consumers in smaller towns and cities who are adopting new technologies faster than ever. By sourcing high-quality, in-demand electronics and gadgets, you can meet the needs of a growing customer base. Additionally, offering after-sales services such as warranty extensions, installation support, or tech accessories can provide added value and boost customer loyalty. Conclusion: Unlock the Potential of the Trading Sector with the Right Support The trading sector presents a wealth of opportunities for aspiring entrepreneurs looking to capitalize on growing trends. Whether you're interested in organic foods, pet care, auto services, furniture, or e-commerce, there is no shortage of lucrative ideas to explore. Securing a business loan for traders allows you to access the necessary funds to start or grow your business. With flexible repayment options and affordable interest rates, these loans offer the financial support you need to succeed. Start planning your trading business today, and with the right strategy and financing, you can set yourself up for long-term success in this thriving industry.
08-11-2023
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Other

Start Fresh with Investments this Diwali

Do you want to light up your finances by choosing the right investment option this Diwali? Are you planning to start your investment plans? Need help determining where to invest during Diwali? On Diwali, many people begin or plan to start their financial journey. However, the vast majority of them never begin investing because they are unsure of which mutual fund schemes to select. Here are a few attractive investment options that could help you generate significant returns. If so, this information is helpful. [B-01] Investment plan for this Diwali Plan your investment options for the upcoming Diwali holiday. Avoid being closely connected to anyone offering investment opportunities this Diwali. Please do not put all of your Diwali savings into a single investment plan, whether it be gold, a fixed-income instrument, or the stock market. Picking the best approach to investing is crucial. Your risk tolerance and the initial investment plan you created to reach your short- and long-term financial goals should inform your growth strategies. Start investing in Diwali by following the tips below. Stocks Investment options in stocks in 2022 are a constant way to profit on Diwali. That’s why many wealthy people buy stocks as gifts for their kids and other relatives. This instrument is ideal to invest in during the Diwali season and the days leading up to it. There are no perfect Diwali stock picks for 2022. You can put your money into large, mid, or small-cap funds based on how long you want to keep your money invested, how much return you’re hoping for, and how much risk you’re willing to take. If you’re looking for a safe and profitable portfolio, a diverse selection of investment options is your best bet. You can also invest wisely by purchasing “little cases,” which are selected portfolios of stocks or ETFs that experts manage to reflect a specific market theme or investing strategy. Diwali stocks in 2022 are plenty, regardless of your outlook. Mutual Funds for Gold Gold mutual funds, which are a favorite Diwali investment option, are a good buy for the holiday season. Some of these funds’ assets are placed in gold vaults or other gold reserves. These funds do more than generate wealth for investors; they also protect them from the harmful effects of market volatility. Gold mutual fund returns may occasionally exceed those of the metal itself, providing a fantastic chance for wealth growth. The best aspect is that you can start investing with a relatively small initial financial outlay. Gold mutual fund investment plans can be made with as little as Rs. 100. Equity The stock market has gone through corrections and stress in the previous several months due to monetary restrictions and global uncertainty. The International Monetary Fund, however, claims that despite these challenges, India is an economic bright spot, growing at a rate of 6.8% this year. Despite the drop, the Indian stock market has nevertheless outperformed many of its competitors in the emerging market arena. That’s why the stock market is a great place to invest in the long run. For instance, during the past decade, its annualized return has hovered around 12%, whereas gold has averaged approximately 5%. However, gold has returned roughly 8.7 percent over the last year. You can put your money into direct shares if you know what you’re doing, or you can put it into equity mutual funds if you don’t. Invest in the stock market according to your risk tolerance and long-term financial objectives. High equity exposure should be avoided by those who are nearing retirement age. Fixed-Deposits for Risk-Averse Investors Bank fixed deposits (FDs) can help investors wary of taking on too much risk get a reasonable rate of return. Banks offer higher interest rates on FDs during the holiday season. If you’re looking to earn a somewhat higher interest rate than the central banks, investigate FDs offered by small finance banks. Fixed-income investment options (FDs) can provide you with a high level of security in addition to sufficient liquidity, which can come in handy in times of financial difficulty. Tax-saving Options The time is coming soon when most workers will have to show their employers proof of tax savings. A tax cut on their earnings could cause monthly family spending to change if they cannot save during those months. By eschewing some conventional methods, Deepawali can serve as a springboard for the coming tax-savings season. A mutual fund that invests mainly in stocks and other equity-related investment options is known as an “ELSS” (Equity Linked Savings Scheme) fund. Other advantages of these funds include lower gains on tax, the capacity to compound, improved risk-adjusted returns, and the choice between SIP and lump-sum investment plans. Adding to or Investing in a SIP Lastly, investors can always add SIPs to their current investment options or start new SIPs from scratch. As time goes on, investors weather the market’s short-term volatility and gain from compounding’s long-term effects. With the help of an algorithm, investors may now set up a “Smart SIP,” which allows them to adjust their SIP payments based on certain variables like the current level of an index, the price-earnings ratio, etc. However, the Smart SIP service is only offered for open-ended, equity-oriented funds invested in the Growth option, and its features may differ from fund house to fund house. Consider the long term while deciding how to invest your Deepawali bonus. A person’s investment plan selections should be guided by their objectives and time horizons, and self-discipline is essential. While we won’t insist that the total bonus be put into an investment option (it is the season for celebration), strategic planning can open many doors for investors to make money. [B-02] Summing Up The purpose of this article is to provide a comprehensive examination of Diwali investment options. After reading this article, we hope you now have a much better understanding of online investment plans. Many of you have thought about starting an online investing option but lacked the information necessary to do so successfully. You may struggle at first to acclimate to your new surroundings, but you will gradually learn to deal with them. Investment Reliable does not offer financial advice, but we provide unbiased information and evaluations on trading, investing, and finance. Users ought to always carry out their research. Also, Piramal Finance has more in-depth, educational, financial-related articles.
08-11-2023
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Home Loan

Step-by-Step Process for Home Loan Balance Transfer in the Current Year

Caught in the mess of repaying your loan at a high interest rate and looking for a way out? Interest rates might bother you, especially if you have wanted a change in your lender for a long time and you still don’t know if it’s a good deal or not. You should consider a home loan balance transfer. We will tell you why and how in this article. Here, you will find everything you need to know about the balance transfer of your home loan, how to do it, the benefits, the home loan balance transfer interest rate, and more. [B-01] What is meant by home loan balance transfer and why is it done? By definition, a home loan balance transfer is a process to transfer your current home loan’s outstanding balance from your existing lender to a new lender. You can do this for: Better terms Lower interest rates Lower EMIs More flexible loan repayment Better customer support Loan top-up Longer loan tenure Before switching to a new lender, make sure you thoroughly read your agreement. Confirm that you are getting a lower interest rate and better terms and conditions than your previous loan. Also, check for hidden charges and clauses. What are some of the benefits of a home loan balance transfer? Here are some advantages of home loan balance transfer: Lower rate of interest.This is the primary reason why borrowers transfer their home loans. New borrowers provide you with a low rate of interest and better terms and conditions. Even a small percentage decrease in your loan amount makes a huge difference in your EMI. Even if the decrease is 1%, it creates a good impact on your EMI amount.However, you will also have to keep in mind the charges for balance transfers and the home loan balance transfer interest rate, which starts at 9.60% p.a. The long tenure of repayment:Tenure of repayment, most of the time, is long which means you will get enough time to repay your home loan. Most of the time, the tenure is about 15 years, but it can be extended to 20 years or even 30 years depending on your credentials. Although you end up paying more interest over the longer tenure, it gives you enough liquidity each month. Suitable loan terms:The terms and conditions of the new lender after the balance transfer are going to be better than the previous lender. It is also your primary job to find the one that suits you the best. Suppose, the previous lender charged you a high processing fee and penalties. After a home loan balance transfer, you should look for a lender who charges you zero to minimal processing fees and no penalties. Quality service:Aside from lower interest rates, the new lender is likely to provide better service. This includes improving the quality of your terms and conditions, providing regular updates on your loan status, sending reminders to pay your EMI on time, etc. Top-upYou might need a top-up on your home loan for interiors, renovations, etc. if your current lender can’t provide you with this much-needed top-up. Some other lenders might be happy to help. Eligibility for Home Loan Balance Transfer Check these conditions to see if you are eligible for the home loan balance transfer: You should have paid at least 12 monthly installments. Check if you meet the criteria for the minimum principal amount and the tenure of the lender you are considering. Make sure you have a good credit score. These criteria might vary from lender to lender. Check with the one you are considering to see what criteria you need to meet to be eligible for the balance transfer. What is the process for a home loan balance transfer in the current year? Here is the process you should follow to change your existing lender and transfer your balance to a new lender. Write an application to your current lender:The first step is to write an application to your existing lender and let them know that you want a home loan balance transfer. Collect a No Objection Certificate:After processing your application, the lender will give you a NOC and a consent form stating that they are ready for the procedure. Searching for a new lender:This task takes a lot of time, and, in the whole process of a home loan balance transfer, this requires the maximum effort. You must make a list of the lenders who seem to fit your requirements. You can make consultations with different bank executives or your advisor for this. Submit your documents to the new lender:Submit all your documents to the new lender, like your KYC, NOC, etc., regarding transferring. Wait for the final confirmation from the previous lender:A final confirmation letter comes from your previous lender, which you have to hand over to your new lender. After this process, you can start paying your EMI to your new lender. [B-02] Wrapping it up The interest rate seems to play a huge role in the process of a home loan balance transfer. If interest rates do not suit you, look for new lenders with better interest rates, terms, and other conditions. Research well, and don’t make haste. If you came this far, that means you are interested in topics like loan systems, investment, financing, trading, etc. If that’s true, then you must visit Piramal Finance, where you will find highly informative content on these topics.
08-11-2023
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Personal Loan

Personal Loans: Terms and Conditions of a Personal Loan

If there’s one form of loan that’s widely used, it’s the personal loan, which is people’s favorite. Personal loans are broad and simple to get; they may be used for several things and do not require assets. You may get personal loans from banks and lending firms. In contrast, personal loans are normally a fairly flexible fiscal tool that you may use to fund a variety of things, such as holidays, weddings, health costs, interest payments, and a variety of other things. However, lending companies may impose restrictions on how you spend your loans at times. [B-01] What Is a Personal Loan? A personal loan is a loan that is often unsecured. It differs from a home or auto loan, which are secured loans. The home or car you want to buy will be used as assets. The lending firm will be able to take the assets if you are unable to make payments. Personal loans, in contrast, are unsecured loans, which means the lender’s sole security is your promise to pay. Due to this, lending firms and banks analyze your income and credit score before granting your loan to confirm that you can repay it. After your loan has been granted, you may use the cash for any personal expenses. Personal loans are often used for medium or short-term funding. Although personal loan eligibility varies per bank, the typical selection factors include age, employment, income, and repayment ability. Terms and Conditions of a Personal Loan Security and Usage One of the most vital benefits of taking out a personal loan is that it may be used for a range of purposes. Unlike vehicle or school loans, personal loans do not have a specific purpose. Also, since personal loans do not need collateral or security, you must be aware of this and avoid falling for fake promises. Criteria for Eligibility Personal loan eligibility standards are created to ensure that you can repay the loan. Each bank has its own set of qualifying rules. The following are some of the frequent elements that influence this: Your Age Most lenders offer loans to people between the ages of 21 and 57. This is because most of you in this age bracket have a steady salary and can afford to repay the loan. Your Earnings One of the most important things that determines eligibility is whether or not your salary is above a certain level. Some banks only offer personal loans to salaried clients since the risk is greater with self-employed clients. Also, the minimum wage might vary from Rs. 13,500 to Rs. 15,000 or even more. Aside from that, another condition that most lenders now have is that the borrower’s salary is put directly into the borrower’s bank account. If you get your income in cash or by other means, you will find it harder to get loans. Credit Ratings Your credit score reflects your solvency. The better your credit score, the greater your chances of securing a low-interest personal loan. Most banks need clients to have a credit score of at least 700, notably for personal loans, which do not require collateral. If you have poor credit ratings or a shaky credit repayment history, you will have a harder time getting loans since banks are not able to trust your repayment ability. What Are Personal Loans Most Often Used For? While the use of a personal loan varies from person to person owing to its flexible structure, most users use them for similar goals. One of the most popular reasons you take out loans is to pay off credit card debt, since personal loans often have lower interest rates than credit card debt. You often use personal loans to meet sudden health costs and payments not insured by health insurance. Similarly, you usually use personal loans to boost or repair your homes. Other common uses for personal loans include having your car repaired or having larger parts changed. You often take out personal loans to meet moving-related expenses, such as hiring packers and movers, among other things. Finally, another popular use of private loans is to fund trips. What Can’t You Do with Personal Loans? As mentioned before, personal loans are pretty flexible and adaptable. Thus, you use them for a variety of reasons. Yet, financing agencies and banks have certain limits on what you may use your loan for. Therefore, you must explain what you intend to use the money for on your request form. Many banking firms will not let you use your loans for betting or other unlawful acts. Banking firms and lenders will restrict you from using the cash from your loan to start an unlawful business, such as selling illicit items. Using personal loan cash to gamble or wager at a casino is not legal. Other than that, there are no limits on the use of personal loans. Yet, to be financially sensible, you should avoid taking out a personal loan for a luxury. Although personal loans have lower rates of interest than credit cards and are thus more enticing, you must not spend beyond your means. Whatever you want to use your loan for, be sure you have the means to repay it on time. Make sure you never take more than you can afford to repay. [B-02] Conclusion Make a strategy for how you’ll spend the money and how you’ll repay it before taking out a personal loan. Think about the benefits and drawbacks of getting a private loan rather than another kind of financing. Explore your choices, including a home loan or a credit card debt transfer. Use an EMI calculator to determine the best loan choice for you. If you’re planning to take out a personal loan, seek quotes from various banks so you can contrast interest rates and loan conditions. Note: read the fine print, which includes fines and taxes. Before pledging, consider if the benefits of a private loan exceed the downsides. Follow Piramal Finance for recent personal loan updates, daily blogs, and articles.
08-11-2023
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