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Business Loan

What Are the Types of Large Business Loans?

Every business needs cash flow at some point. The size of the business doesn’t matter. The purpose of getting a large business loan depends on many factors. A business expansion, new purchases, urgent payments to agents, etc., are the reasons for sudden cash needs. What type of business are you operating? What is the stage of business operations? Every business works in its own manner. Banks and NBFCs offer many types of business loans. These loans can be either small or large business loans. [B-01] Types of Large Business Loans Business Term Loan Term loans are a popular form of business loan in India. A business’s credit score is a factor that determines the loan amount. The business loan is given for a fixed term. The tenure is usually between one and five years. You should specify your intended use of the funds when applying for such a loan. You can use the business loan in many ways. One such way is to fulfill financial needs. Business Loans for Start-ups Today, young minds are starting their ventures. They’ve dubbed it “startups.” Most of the time, these young brains search for investors or apply for loans. Since they are new, they don’t have a credit history. Lenders are hesitant to make loans because credit is such an important factor in loan approval. Lenders approve the loan based on the owner’s credit score and personal profile. The firm should be legal on paper. The applicant must produce all the papers correctly. Current account data is studied for the business loan amount, term, and interest rate. Before applying for a loan, the company should have all of its legal documents in order. Business Loan for Routine Capital Firms use large business loans to get help with any sudden money matters. They can use this amount for the firm’s daily needs. Business loans for routine purposes can be used for many purposes. These are to pay daily wages, a new purchase, the inflow and outflow of cash, etc. Retailers, sellers, etc., can use the routine capital loan for export and import. These loans are short-term. Their term period is 12 months maximum. Also, there is no need for any security. It benefits the borrower by using any asset as security. Property Loan Property loans are large business loans amounting to more than ₹50 lakhs. It is a property loan because you must have security to avail of such a huge loan. It is a loan against the property. The asset you will be pledging must be free from legal issues. The payback period ranges from 10 to 20 years. Property can be of any type – personal or business property. The lender will provide a loan amount equal to 70% of the property’s value. Invoice Factoring There are small businesses that suffer from a cash crunch. When a business raises an invoice but doesn’t receive the payments, it faces a cash shortage. The lenders or banks remit funds equal to 80% of the invoice amount. The applicant can repay the loan when the actual payments are received. The loan amount, term period, and interest rate are decided before the loan is approved. Business Loan for Machines One of the types of large business loans in India is for heavy machinery. It is suitable for firms that deal in building and construction. Buying important machines with the help of loans lessens the burden. Most building units require costly machines for their work. A large business loan for machinery is a specific loan. Users must provide security and use the loan amount for the stated purpose. It is advised to take this loan to purchase heavy machinery. The interest rate is lower than that of other term loans. Overdraft Facility If your firm has an FD with a bank or NBFC, then you can avail of an overdraft facility. Overdraft is one primary type of large business loan. Before allowing for overdrafts, there are several factors to consider. Lenders consider the firm’s credit payment history, inflow and outflow of cash, terms of its FD, etc. The benefit of OD is that the applicant can take out the cash needed and pay interest on the used amount. Women Business loan Some banks and NBFCs offer women Business loans. These loans are to help women operate their firms. These are mainly for women who have small to medium-sized firms. Such special perks include easy business loans, rebates on interest charges, and quick loan approval. Credit Card Facilities You can apply for a firm’s credit card. It is used to fulfill short-term needs. You can always use a firm’s credit card when in need. Your firm’s credit card can give you many plus points. These can be credit points, cash back, insurance coverage, etc. However, credit cards have high interest rates. Hence, these cards should be used as the last option. Advance to Agents You can get an advance in the form of a loan from a bank or NBFC. This amount is equal to some part of the capital from the daily sales. You can return the money taken as part of the daily credit sales. You need to opt for this type of business loan. You can maintain enough cash for the payments. The benefit is that the payment can be made daily. [B-02] Conclusion It is always advised to choose a business loan that fits your business profile. You can always study different types of loans before applying for one. You should always choose the best business loan for your venture. Large Business loans are available at a very affordable interest rate. Banks and NBFCs also provide easy EMIs. The process for a business loan application is very simple. Visit the official website of Piramal Finance for more assistance and finance blogs.

08-11-2023

Home Loan

Step By Step Process to Avail Home Loan Subsidy Under Pradhan Mantri Awas Yojana

Everyone must have a roof over their heads. Therefore, PM Narendra Modi launched the Pradhan Mantri Awas Yojana (PMAY) in 2015, intending to establish “housing for all” across India. This scheme aims at urban and rural populations alike. This yojana provides affordable housing for economically disadvantaged and low-income groups. Pradhan Mantri Awas Yojana Gramin is a scheme designed mainly to make housing loans affordable for those in need. With lower home loan rates, everyone can now afford a permanent home. This scheme has two main sections: PMAY-U and PMAY-G. PMAY-U benefits urban areas where economically weaker, low-income, and middle-income groups are eligible. PMAY-G is for the rural population. The rates for each of these are different, depending on the financial condition. These all come under the CLSS, a Credit-Linked Subsidy Scheme for only home loans. In this article, we will throw some light on the steps to follow to avail home loan subsidies. [B-01] Eligibility Criteria for the PMAY Scheme Before starting the procedure to fill out the PMAY form, check if you are eligible for it. You can check the points of eligibility below. This scheme is only for home loans. You can benefit from this scheme only if your loan amount does not exceed Rs. 6 Lakhs. If your maximum loan amount is Rs. 2.67 Lakhs, you can gain the benefit. The family looking for the subsidy must not have any pucca houses. This is most commonly the case for those under Pradhan Mantri Awas Yojana Gramin. PMAY-U can also opt for it if the family encounters space issues in migration. Pradhan Mantri Awas Yojana Gramin’s online application is open for those with no prior housing scheme benefits. A married couple applying jointly would be eligible for a single pucca home loan subsidy under PMAY. MIG category families require Adhaar Card to confirm the application for PMAY subsidy. Steps to Avail Home Loan Subsidy under PMAY Calculate Your Current Earnings It is a good idea to check your financial situation before going for the Pradhan Mantri Awas Yojana Gramin online application. This will tell you if you fall into any categories under the PMAY scheme. Hence, calculating your income is a good way to check how much land you can afford. Online PMAY income calculators are available for you to check now. Fill PMAY Application Now You can easily fill out the offline application forms at common service centers everywhere. A certain fee of Rs. 25 is required to fill out the form. If you are filling out the online application, follow the steps below: Open the browser and type in the PMAY official website address: https://pmaymis.gov.in. In the list of tabs, find “Citizen Assessment” and click on it. Then, you can choose the category under which you can apply. You will be required to submit the Adhaar Card details at this step. This is necessary for the home loan subsidy application form’s completion. After submission, you will be taken to the form where more personal details need to be filled in. Finally, you can click on the SAVE option for later use in the PMAY application form. Fill Loan Application Form Firstly, you are required to submit the online or offline PMAY application form. Then, you can visit a nearby bank or non-banking financial company such as Piramal Finance. You would be able to easily obtain the home loan subsidy here. Along with the PMAY application form, you would need the following: income proof, details of any investment, any properties, the details and information of the co-applicant or joint partner. Checking Online PMAY Application Status You can check the status online using one of the two methods. With Assessment ID Go to the official PMAY website. Click on the “Assessment Tab” and find the “Tracking Application Status” option. Next, choose “By Assessment ID” out of the two options. Enter the ID provided at the time of PMAY application form submission. Click “Submit.” On the screen, you will see information about the application form’s status. With Personal Details Go to the official PMAY website. Click on the “Assessment Tab” and find the “Tracking Application Status” option. Next, out of the two options, choose “By Name, Father’s Name, Mobile Number.” Provide the state, district, and city details of your application. Further, you can fill in the details of your name, father’s name, and mobile number. Once you are done, you can click on the “Submit” option. Your application status will be visible on the screen. [B-02] Conclusion You can avail the complete benefits of the Pradhan Mantri Awas Yojana Gramin as per your eligibility. You can rely on Piramal Finance to get you the best possible solution. The home loan schemes presented here are all designed to benefit the beneficiaries as much as possible. Therefore, you can gain greater benefits if you opt for a premier financial institution like Piramal Finance. Those can be related to the PMAY scheme and any other value-added services we can provide. Every benefit is calculated with your financial situation and income in mind to assist with your home loan EMI. You can get all the details about the Pradhan Mantri Awas Yojana Gramin Online Application. You can check with the Piramal Finance website and the team’s professionals. They will guide you step by step through filling out the form and checking your eligibility. You can submit a loan form and check your status with expert help. In the end, you can discuss and plan the details of the EMI repayment.

08-11-2023

Mutual Funds

What Types of Mutual Funds are Available?

Mutual funds have recently become very well-known as a successful investing channel. Your investment goal will determine which type of mutual fund fits your needs. Mutual funds may also see their returns go down because of commissions, annual fees, or expense ratios. A portfolio of stocks, bonds, or other securities makes up a mutual fund. According to the types of securities you invest in, your investment goals, and the kinds of returns you seek, mutual funds are grouped into several categories. [B-01] Types of Mutual Funds Equity Funds Equity funds are a type of mutual fund that, as their name suggests, invests in the stock of various firms. These funds carry a significant investment risk due to their equity market investments. Besides, this type of mutual fund is likely to see capital growth. While equity funds share a typical pattern, not all are equal or similar to one another. Some equity funds may invest only in one or a few specific sectors. Others may attempt to replicate an index like the Nifty 50. Balanced Funds These investments are also known as “asset allocation funds.” It combines equities and fixed-income funds with a specified percentage of stocks and bonds. For example, 60% for stocks and 40% for bonds. The most popular type of these funds is target-date money. It changes the proportion of investments from equities to bonds as you approach retirement. Solution-Oriented Funds These mutual fund plans are intended to help you achieve specific objectives. This includes saving money for your retirement or your children’s college or wedding. They have the shortest lock-in period, lasting only five years. Debt Mutual Funds Based on the debt securities the fund firm invests in, debt funds are differentiated. The distinction is made depending on the issuer and the holding time of the securities. Further, the risk in debt funds is identified based on the tenure and issuer. Hybrid Funds These plans invest in both debt instruments and equities. Whether they are equity or debt-oriented hybrid funds, it influences the proportional allocation to equity and debt. Debt-oriented hybrid funds have at least 75% of their exposure to debt instruments. whereas equity-oriented funds invest at least 65% of their assets in equities. Types of Mutual Funds Based on Risk Low Risk These types of mutual funds are where people put their money when they don’t want to take a chance with it. These investments are long-term. They are made in places like the debt market. As a result of their minimal risk, these investments also have modest returns. Gilt funds, which invest in government securities, are, for instance, low-risk funds. Medium Risk These investments present a medium level of risk to the investor. They give more significant returns, making them perfect for people who are willing to take some risk with their investment. Further, these funds can be invested to accumulate wealth over time. High Risk These mutual funds are perfect for people willing to take more significant risks with their money and who want to accumulate wealth. Inverse mutual funds are a kind of high-risk investment. Despite the increased risks associated with these funds, they also provide higher returns. Types of Mutual Funds in India Mutual funds can also be classified depending on their structure. There are three different types of mutual funds in India: Open-Ended Funds These can be bought and sold all year. Here, fund managers attempt to invest in securities with more significant prospective returns. Open-ended fund purchases and sales are based on the fund’s current Net Asset Value (NAV). Close-Ended Funds After a set maturity, closed-ended schemes allow for the redemption of investments. Even though these funds are also listed on the stock exchange, liquidity is low. Interval Funds Open-ended and closed-ended fund features are combined in these funds. These funds offer to purchase back shares regularly at a proportion of their net asset value (NAV). Typically, the fund will offer shares of interval funds for sale each day at the current net asset value. Types of Mutual Funds Based on Investment Objectives Growth Funds To provide financial appreciation, growth funds invest money in equity stocks. They are considered riskier funds, appropriate for investors with a long-term horizon. Since they are hazardous funds, they are also perfect for investors seeking greater returns on their capital. Pension Funds After a significant investment period, pension funds provide regular returns. They are hybrid funds with modest yields. But they have the potential to offer consistent returns in the future. Tax-Saving Funds These are referred to as Equity Linked Savings Schemes (ELSS). Each financial year, they are entitled to a tax deduction of up to Rs. 1.5 lakh. With 65% or more of the portfolio invested in equities, tax-saving funds are diversified equity-oriented funds. Capital Protection Funds These funds split their investments between equities and fixed-income instruments. This could guarantee capital protection, i.e., little loss, if any. [B-02] Conclusion If you know more about the different types of mutual funds, you may be better able to reach your financial goals. To maximize your investment returns, you can check the objective of the funds. Further, see whether it matches your needs or not, and then you may make investments. You can also visit Piramal Finance to get a better understanding of mutual funds and the products and services they offer.

08-11-2023

Business Loan

Step-by-step Process to Get MSME Loan for New Business?

The Government of India has launched many schemes in the form of loans and subsidies to help and promote entrepreneurs in their business ventures. One of them is the MSME business loan which targets to finance and foster medium, small, and micro businesses (MSME). Do you also want funds from the MSME loan for your startup? Well, this article will help you navigate through it in detail. In this article, we will discuss the MSME business loan why it was introduced, its benefits, and how to get a startup business loan for your new business. [B-01] What is the MSME loan scheme, and what is its primary objective? The MSME Ministry of India is an individual body that has executed and implemented the MSME business loan schemes for the betterment of emerging small businesses. This loan system’s prime objective is to provide unsecured loans to individual, small business units to help them meet their business-related expenses. Not only the government, but private financiers and private banks have also started giving MSME loans to individual, rising businesses. The main differences between government and private MSME loan schemes are the interest rate and the loan amount. This loan has self-tailoring features, which means you can get an MSME startup business loan as a short-term, medium-term, or long-term loan scheme. You can take it as a cash credit, letter of credit, working capital loan, etc. You can use this lump sum amount to buy raw materials, use them for transportation, or pay for any services. What are some of the exclusive benefits of the MSME loan scheme? Here are some of the exclusive benefits of getting an MSME loan: Low rate of interest: Banks charge a low rate of interest to small and micro businesses to ensure that the minimum amount is spent on repaying the loan and the maximum amount goes into funding the business venture. The rate of interest for MSME business loans in India is somewhere in the range of 10 to 25 percent per annum, with an exception of 1 to 1.5 percent by some lenders. Accessibility: MSME startup business loans in India are highly accessible and easy to apply for. The whole process is hassle-free with serious exemptions, which makes it an ideal loan system with the fewest cons. Collateral-free: Since it is an unsecured loan, there is no requirement for collateral, a security deposit, or a guarantor. If you don’t have any of those, you don’t need to worry about your loan getting sanctioned. This decreases the burden on small and microbusinesses and helps them pay better attention to their businesses. High flexibility: MSME business loans are a short-term affair, and you require them only to cover your short-term requirements. Since an MSME loan isn’t a long-term commitment, you can easily focus on developing your business. The long tenure of repayment: The tenure of repayment is not fixed for every bank, but it can often be started at 3 years and stretched up to 15 years, which seems like a reasonable amount of time. You can repay your loan within this loan period in the form of installments. High loan amount: If you get your MSME startup business loan sanctioned, your loan amount can go up to Rs. 50 lakhs, which you can use in your business venture. You can use it to buy new types of machinery, and raw materials, expand your manufacturing, hire more workers, and pay for other services. What is the eligibility for an MSME Business Loan? Here are some of the eligibility requirements to help you get an MSME business loan: Type of business: The type of business determines whether or not you are eligible for MSME loan schemes. The two types of businesses that are eligible for MSME loans are those in the manufacturing sector and those in the service sector. Business experience: In your current business, for which you are applying for a startup business loan, you must have a minimum of one to three years of business experience. This is due to the fact that you must demonstrate to the banks that you have extensive experience in the business venture in question. Business turnover: A business turnover of about 12 lakh rupees per year is the benchmark for an MSME business loan. However, it is again very subjective because different banks have different criteria. Credit score: It is a common analogy that a good credit score will increase your chances of settling on a better deal on any type of loan, which stands to be true. If your credit score is 750 or more, it is always a plus point for you and increases your chance of getting a bigger loan at a lower rate of interest. Clean loan history: If you have been paying your previous debts diligently and on time, then you are always a step ahead. Banks prefer candidates who have a good track record and pay their instalments on time. [B-02] Conclusion The interest rates from the top banks for MSME business loan range from 8.5% to 15% per annum. Some of the popular banks might go lower than that with an increased tenure of repayment. You should use calculators in this case, where you can spin different loan amounts and interest rates to see what suits you best. You should focus on improving your credit score, improving your business venture, and increasing your business experience to make a better pitch and get a decent loan. If you prefer well-researched and easy-to-understand articles and blogs on these topics, you can have a look at the official website of Piramal Finance. We have some amazing content on loans, investment, financial consulting, SIPs, etc.

08-11-2023

Business Loan

Steps to Getting an Entrepreneur Business Loan in India

Are you applying for an entrepreneur loan in India in 2022? Want to know more about what an entrepreneur loan is, what its benefits are, who should apply for one, etc.? Then, this article is the right place for you to dive in. In this article, you will get to know the actual meaning of an entrepreneurial business loan, its features and benefits, the eligibility criteria, and how to apply for it. [B-01] Features of an Entrepreneurial Business Loan An “entrepreneur loan” is a type of loan that is only sanctioned to business companies and startups for meeting their business expenses. With an entrepreneur loan, you can take out a loan to invest in your business venture in order to improve the quality of your goods, buy new technology, invest in your infrastructure, etc. Since entrepreneurship is on the rise in the 21st century, these types of loans are frequently taken. The lender doesn’t require any type of collateral or security deposit while giving you the loan. For small, emerging business ventures, banks provide business loans to help them increase their market value, shares, profit margin, etc. In exchange, you must repay the debt in installments over a specified period of time. Benefits of an Entrepreneur Loan Here are some of the exclusive benefits of taking a business loan: Less burden while paying instalments When you apply for a business loan, banks frequently offer the tailoring option to reduce your burden while repaying the instalment. There is an option called the Flexi facility, which reduces the burden of monthly instalments and will help you pay off your debt easily. No requirement for collateral Banks don’t ask you for collateral or a security deposit while you’re applying for an entrepreneur loan. This is another advantage to help you skim through it in case you lack a property or shares to use as collateral. High loan amount Many banks allow you a higher limit of up to Rs 50 lakh, which is a huge amount for business startups. This amount solely depends on how well your business is supposed to do in the future. If you have a good scope and a promising future in the venture, you are more likely to get a handsome amount as a loan. Low-interest rates Interest rates on business loans are comparatively lower, and a low rate of interest is all that you need. The range is somewhere between 15% and 20% per year, which is reasonable for an entrepreneur loan. Quick disbursal Another advantage is the quick disbursal of money in an entrepreneur loan. As soon as you get access to the amount, you can use it to buy assets for your business or invest in goods. Quick approval The approval period is also pretty fast for an entrepreneur loan, which is mostly within 1 to 2 days. If you have good prospects and your venture has a promising future, you can even get approved in less time than that. Long repayment tenure The repayment tenure on an entrepreneur loan is mostly 5–8 years, depending on the bank. In some cases, the period goes up to 10 years or even 12 years, which means you will have ample time to repay your loan. Pre-approved offers You might even get pre-approved offers if the banks know that you have a business that is going to do well in the near future. Another reason for getting a pre-approval loan could be your clean credit history and excellent credit score. Eligibility Criteria for an Entrepreneur Loan Here are the eligibility criteria that you must fulfill to apply for an entrepreneur loan: Age limit You must be at least 21 years old to apply for a business loan and be under 65 years old. Some banks start at 25 years, while some close before 60 years, which remains highly subjective. Minimum turnover To qualify for any type of business loan, your company must have a minimum annual turnover of around Rs. 40 lakhs. This amount again depends on the bank where you apply, but Rs 40 lakh to Rs 50 lakh is the benchmark requirement. Business type Either you can be a person who is self-employed, a proprietary individual, or you can have private companies or partnership firms that are dedicated to manufacturing, trading, or providing services. Nuanced business ventures are taking over traditional business these days, which is why banks look for these types of businesses. Business experience The total business experience of the individuals in the current business must range from 3 to 5 years if you are looking to apply for an entrepreneur loan. Make sure that you are currently in the same business for which you are applying for a loan. Minimum annual income Your business, for which you are applying for a loan, must earn at least Rs 1.5 lakh per year. This is the minimum requirement to qualify for any type of business loan. Things to Keep in Mind While Applying for an Entrepreneurial Business Loan You should always attempt to improve your marketplace, which will have an impact on the minds of the lenders. You should make sure that your business has a high value and is going to make good profits in the near future. Another thing is improving your business experience as much as you can. Since an entrepreneur loan is still a debt, you should invest wisely in it to make good profits and take your business to the next level. [B-02] Summing Up Business loans in India are on the rise because of the emergence of various startups. Government schemes have also shown up, which have helped over 39,000 business startup ideas scale up. If you like reading articles and blogs on these topics, you should make your way to Piramal Finance. The blogs on this website are filled with information regarding investment, finance, SIPs, loans, etc.

08-11-2023

Stocks Markets

What are the Types of Stock Market Trading?

Stock market trading is among the most profitable investment opportunities in the world. Millions of traders go to stock markets to try their luck and trade talents daily. Though some learn the methods of the game and earn many profits, others lose money in the market. Traders often enter the stock market without determining which trading style is best for them. This article covers the many types of stock market trading to assist you in making better judgments and earning reasonable profits. So, to clear the air, let’s go through the many sorts of stock market trading in depth. But before that, let’s learn what trading is. [B-01] What is Trading? Trading is the gear that turns the economy’s wheel. It is the exchange of products and services between two or more entities in exchange for another product or money. A market is a location where trade occurs. There are both organized and unorganized markets. The organized market adheres to rules and regulations that all entities must obey. There are government bodies overseeing the preservation of market integrity. An unorganized market lacks regulations and authority. Trading in the stock market today refers to the buying and selling of stocks of publicly traded firms on the stock exchange. These stocks are traded on both the main and secondary markets. Five Types of Stock Market Trading The stock market is a sea of options for traders who like taking chances. If properly planned and carried out, it is very profitable. Trading styles might vary hugely since each trader has a distinct identity. Here are five types of stock market trading to choose from: Intraday Trading Day trading and intraday trading are the same. This trading involves buying and selling stocks on the same calendar day. It plainly states that if an owner buys a certain number of shares on a given day, traders must simply sell them before the offer expires. With this type of trading, investors can use margins by obtaining broker credit. Due to its short duration, this trading has a modest level of risk, but it might become harsh if the trader employs an excessive margin. Also, since this trading enables traders to receive payments with modest margins, it requires relatively less capital commitment. Delivery Trading Delivery trading is a long-term equity plan and is regarded as one of the safest methods to participate in the stock market. It is the most frequent kind of trading done in the stock market today. Investors engage in delivery trading to hold onto the equities traders have already acquired for longer. In contrast to intraday trading, this trading does not enable the use of margins. And the investor must have vital cash. This sort of trading requires full payment from the investor for all trades. Delivery trading requires the supply of stocks to a specific Demat account. It does not impose any time restrictions on equity dealing. Positional Trading Positional traders, like day traders, judge a stock’s trend before buying it. This trading does not allow selling first and buying later, as day trading does. It is a medium-term strategy for bold investors who can disregard short-term market volatility and rely on long-term rewards. When a positional trader sells an asset, people are bound to pay Demat trading fees. Some of these traders study the stock’s price movement to determine the exit and entry positions. They create resistance and support lines on a chart to grasp the stock’s trajectory. Some positional traders use hints to predict the future stock’s direction. Scalping There may be up to a hundred trades daily on the stock market. When scalping, a trader aims to make modest but large daily gains. The stakes are only kept for a short period of time. While scalping is a trading strategy used to increase earnings, it is not always viable. The losses may outweigh the rewards. Scalping calls for expert market know-how, much like day trading. Momentum Trading By following the momentum of equities, traders attempt to earn money on the stock market via momentum trading. The goal is to sell a stock while it is moving up so that you may obtain returns that are higher than average. The plan is to purchase stock in huge volumes while it is trending lower and then sell it when its price rises. The Impact of Internet Trading on the Stock Market Online trading services have helped popularize stock trading tremendously. It has made data and analysis available via smartphones and laptops. As many trading methods are available, you may choose the ideal one based on your profit goal, tolerance for risk, and equity goal. Needs for Stock Market Trading The first step in trading on the stock market is to open a Demat and trading account. On the stock market, direct trading is not permitted. You may create a Demat and trading account with a stockbroker who is a member of the stock market and SEBI (Securities and Exchange Board of India). A share market trading account allows you to make stock exchange transactions, while a Demat account stores shares digitally. Both are needed to begin trading in the stock market. You will need a bank account, PAN card, identity proof, and domicile to create these accounts. How can you start an Online Stock Trading Account? To create an online share trading account, you must first complete the following steps: Provide all relevant data, such as your PAN and bank account data. Upload the needed papers. E-sign the form. Fill up a form and begin trading in the stock market online. [B-02] Conclusion With the introduction of the internet, traders may now trade on the NSE and BSE from anywhere in the world. With more trading alternatives accessible, traders have a better chance of profiting than ever before. Now that you know about the many types of trading, it’s time to put your knowledge to use and create gravity-defying gains. For more blogs on stock market trading, check out Piramal Finance and explore their products and services.

08-11-2023

Tax

What Are the Types of Taxable and Non-Taxable Income?

Unless the rules specify otherwise, any money you receive is taxed. According to the IRS, taxable income covers both earned income, such as wages, and money received from trading or the trade of goods or services. Like other unearned income, such as taxes, rental income is levied on profits, interest, and Social Security. People getting a salary and other forms of income are taxed differently. You gain from e-filing your income taxes. However, you must still report the pay earnings in a form, either online or offline, to submit the returns, and knowledge of income granted by bosses to cover many costs might be helpful when filing the returns. Let’s now learn more about taxable and non-taxable income definitions and types. [B-01] What is Taxable Income? Taxable income is any payment a person or firm receives to calculate tax duties. The total income amount, also known as gross income, is used to compute how much the person or firm owes the state for taxes. One thing to keep in mind about taxable income is that it covers not just pay but also other types of salary, such as bonuses, permits, sales, and capital gains. Let’s know about them in brief. Types of Taxable Income Here are the types of taxable income: Gains on Capital These gains are income created by assets you own. It involves selling real estate, bonds, and stocks, among other things. Firm/Sales Profits You must declare any money earned from specific firms and investments. This includes any rental money from assets that you own. The rental tasks you receive are the same whether they are the result of a business or if you earn them for profit. Keep in mind that you may be able to report the rental expenses, which may offset the money you get. Profits from Partnerships The IRS does not tax these firms. Still, all revenue, deductions, and losses derived from them are passed on through partners. As a result, the partnership pays no taxes. You must report any pass-throughs on your yearly tax return if you are a partner. This must happen, although the pass-through does not directly relate to you. Profit on Investments This income is taxed. Taxable income includes earnings from a fixed deposit, bonds, debenture interest, dividend income, and rental income from real estate. Many Taxable Earnings This includes alimony, pensions earned after the loss of a pensioner, income from hobbies, gambling, and lottery gains, and profits from winning in game shows, among other things. Employee perks This type includes earnings from the boss. Salaries, wages, pensions, bonuses, perks, and so on are all included. What is Non-Taxable Income? Tax-free or non-taxable income is income you get that is not taxable. If you receive taxable income, be ready to pay both federal and state taxes based on where you reside. The following are the five principal types of earnings that are tax-exempt: Types of Non-Taxable Income These are the types of non-taxable income: Agricultural Earnings This income is exempt from income tax under Section 10(1) of the Income Tax Act. People and HUFs, on the other hand, have an income that exceeds Rs. 5,000 added to the total income. This is done only to know the slab rate that will apply to the people’s other income. Other income, in this sense, refers to money derived from sources other than agriculture. As a result, agricultural income is not taxed, although disclosing the revenue raises the total income tax rate. Gifts Marriage gifts are excluded from income tax. Gifts from close family and relatives are likewise tax-free. Property tax given as a gift is also exempt. Child Support If you get child support payments, these are non-taxable income and shouldn’t be included with your taxes. Study Allowance It is tax-free if you get money to help pay for your education. Bonds and Certificates The interest generated on the tax-free investment bonds is tax-free. Other Sources of Income Other non-taxable income sources include leave and travel allowances, housing rent allowances, interest earned on savings bank accounts, and leave paid to retiring federal and state workers. Distinction Between Taxable and Non-taxable Income? The Internal Revenue Code defines taxable income as gross income with fewer deductions. Gross income is the total amount of money collected from all sources. This implies that you pay taxes on sources other than your salary, such as investments. Since the IRS is unconcerned with how you receive your money, taxable income is vast. You must pay taxes even if your firm is unlawful. However, the IRS considers other forms of income to be nontaxable. The agency will not tax the clearly defined non-taxable income. That is why you need not be concerned about including it in your tax filings. Knowing non-taxable versus taxable income is one of the most vital aspects of taxes. You’ll find the process simpler if you’re also aware of the changes to watch out for while paying taxes. It would be helpful to learn about many sorts of taxable and non-taxable incomes, whether you pay taxes as an individual or as a firm. [B-02] Conclusion Income is any payment you make in exchange for offering a service. Without a doubt, money is the most common kind. But most people are unaware you have other income sources, such as in-kind goods and services. And also, these are all taxes. Learning what to include will help you file your taxes with ease. Use the tips and advice above to make sure that you assess and disclose your taxable income to prevent any issues. And if you are still confused about your taxable and non-taxable income, visit Piramal Finance and explore the products and services.

08-11-2023

Personal Loan

How Do Banks Review a Personal Loan Application?

You can use the money you borrow from a personal loan application to pay for anything—from a long overdue home rebuilding project to urgent medical expenses, a new start-up, a much-needed vacation, or anything at all. However, the outcome of your application for a personal loan from a bank depends on the results of the client verification process. We’ll examine the several criteria that banks use to evaluate a borrowers’ applications for personal loans. [B-01] Points Reviewed by Banks Before Approving a Personal Loan Application Here are certain factors that can influence the result of your personal loan application. Credit Score Your credit score is crucial for the approval of a personal loan. It helps lenders track your creditworthiness. The credit score depends on how the user has previously managed their credit. The thumb rule is that the higher the credit score, the better the chances of getting the loan approved. If the payment record is good, then loan approval is easy. Repayment Schedules Lenders prefer shorter repayment cycles or loan terms. A shorter payback period means that the lender can get the loan back quickly. However, the payback period should not be too tight. It might make your EMIs unrealistic. Personal Loan Documentation All necessary papers, like your PAN card, photo ID proof, address proof, and financial records, should be in order at the time of applying for a personal loan. The loan officer will verify them. If there is any issue with the documents, your loan application will likely be rejected. Employment Background A borrower with considerable work experience will have the edge over a new hire. While getting the loan, a new startup may face some issues compared to a successful business owner. Also, an application from a freelancer has a higher chance of getting rejected as compared to one from a salaried employee, especially a government sector employee. How to Apply for a Personal Loan Online? Banks always ensure it’s easy and quick to get a personal loan. You can stay at home and still get all the money you need with the help of online personal loan login. All you have to do is follow the steps below to log in to the bank’s website and file a personal loan application: Visit the lender’s website for an online personal loan. Click on the personal loan section. Select “Apply Now.” Choose whether you are a salaried or self-employed person. Fill in your personal information. Choose the loan amount and tenure. After that, you will need to upload the required documents. This includes your PAN card, Aadhaar card, proof of address, proof of income, most recent pay stub, most recent three months’ bank statements, and degree certificate. The loan application will be reviewed by a team of experts at the bank or NBFC. Once the personal loan is approved, the money will be sent to your bank account. Advantages of a Personal Loan Application Here are some advantages of obtaining a personal loan. Quick & Easy Personal loans can help you save time and effort. You can use the personal loan login facility online and apply for it from the comfort of your home. You can get the money in a few hours or days. Personal loans can be used right away. You must fill out a loan application and show proof of identity. The lender looks at your credit score and credit history. If the loan is approved, the lender puts the money into your bank account. The process is very simple and quick. There’s no need to go to the bank when you need cash quickly. No Security Required Personal loan applications don’t require collateral, and you can obtain a loan up to Rs. 30 lakh. It is an unsecured loan that you can secure without much hassle, unlike other loans. No Limitations on Use A personal loan can be used for various financial needs. This is because they are flexible and easy to get. For example, you could use them to buy the newest phone or fix your house. When you login for a personal loan online, the application doesn’t ask you why you want it. So, you can use the money for more than one thing. For instance, you could use some of it to buy a new bike and use the rest to pay for your next trip. The choice is up to you. Minimal Paperwork Personal loan applications require minimal documentation. Your credit score and credit history mainly determine if you can get one. If your credit score is good, you can easily get a loan for a large amount. Getting a personal loan is much easier than getting a business or home loan. Hence, you can apply for a personal loan online and not worry about being turned down. Affordable Interest Rate Depending on your credit history and the loan amount, you may get a good interest rate on a personal loan. You have nothing to worry about if you have a steady income, a good financial situation, and a high credit score. You can get a low-interest loan, making it easy to fit it into your budget. Settlement terms are flexible and can be extended for up to 60 months. This gives you plenty of time to pay off your debt. It can be a good way to get money in an emergency or make your dreams come true without any debt. [B-02] Conclusion Personal loans are a great choice for many people. It offers instant relief from your financial crunch and helps you save time, money, and effort. You can even combine multiple loans into one with lower interest rates. The best part is that you can use a personal loan for any purpose, whether home improvement or buying a new car. Apply today. For more assistance, login for a personal loan on Piramal Finance! Get loans at an attractive interest rate and repay them at your convenience.

08-11-2023

Business Loan

What Credit History Is Considered for a Small Business Loan?

A small business loan usually involves a lengthy application process. The lender you work with and the kind of loan you want will both have different requirements. To be eligible for a business loan, you must typically have a minimum credit score. Credit scores allow lenders to assess the risk involved with lending money to a person as well as the credit history of the borrower. Lower credit scores could make it harder for business owners to get the loans they want. In light of this, let’s take a look at the various credit scores needed for small business loans. [B-01] How to Get a Business Credit Score Many business owners are unaware that their firm can have a separate credit score from their personal one. To get a business credit score, the company must be recognized as distinct from you. The simplest way to do so is to get an Employer Identification Number (EIN) from the IRS. Business credit scoring agents will track your company’s credit history once you’ve been assigned a number. Why Credit History is Important to Apply for Small Business Loans Having all of this data in mind, you may be asking why, in the first place, your credit score is so crucial when asking for business loans. Throughout the small business debt insurance process, lenders assess the lender’s risk. It includes the chance that the client will not repay their loans. Many aspects, such as a firm’s inexpertise or low income, might imply potential risk. So, how does your credit rating factor in? Your credit score is a history of your economic activity. So, if you’ve been unable to settle your loans on time in the past, it’s a safe bet that you won’t be able to return your firm bills and loans on time. In contrast, if your personal fiscal history is mostly flawless, there’s a strong chance you’ll also keep track of your firm’s finances. Of course, you may have a business credit score as well. Personal credit scores are often more vital to lenders. Also, high personal and business credit ratings can help you qualify for a low interest rate. How Does Your Personal Credit History Affect Your Eligibility for a Small Business Loan? Most small businesses will lack a separate, credible, and well-established business credit score. At that moment, lenders will use your personal credit history as a proxy for your firm. A higher personal credit score will increase your chances of being approved for a loan. It also affects your loan term, EMIs, and the interest rate charged. Your personal credit score is also crucial for secured and unsecured loans. You may be able to apply with a lesser credit score if you provide a personal guarantee as collateral. You can get a loan without collateral as well. However, it will cost you more in terms of interest. So, you will need a high personal score to secure the desired loan. Minimum Credit Scores for Small Business Loans Here’s how your credit score affects your chances of getting a small business loan. Remember that this is only one of many factors considered by lenders during the approval process. A credit score of 550 or lower When the owners of a small business have credit scores in this range, most lenders will deny offering them loans. In some of these cases, you have to be eligible for a loan from a specialized lender. But the interest rates will most likely be very high. You may also be able to obtain merchant cash advances or invoice financing. But, do your research and proceed with caution as always. A credit score between 550 and 600 Your small business loan might not be approved by most banks at this point. The interest rates will still be high even if they do or if you have access to alternative lenders. A credit score between 640 and 700 This is still too low to meet the criteria for most banks’ loans. There are a lot of lenders available to you who might offer you a loan. But the interest rates will still be higher than they would be for traditional loans. A credit score between 700 and 750 Here is where you can simply apply for traditional bank loans and SBA loans. Most financing options are still available. But, you will usually need considerable documents and proof of your company’s ability to pay. Also, you might still find yourself on the high side of interest rates. A credit score of 750 or higher With low-interest rates and useful repayment terms, you’re in the best possible position. With this high credit score, you will be able to obtain affordable financing. Minimum Credit Scores Needed by Various Lenders The minimum credit scores needed by distinct groups of business lenders are listed below as a quick reference: A traditional bank needs a personal credit score of 680 or higher to grant a loan to your small business. To qualify for a loan from the Small Business Administration, you must have a personal credit score of 680 or higher. A personal credit score of 630 or higher is needed for many loans to buy vehicles, equipment, and other assets for businesses. For short-term loans from highly specialized alternative lenders, you need a personal credit score of at least 600. You must look for very specialized lenders if your credit score is below 600. The interest rates will be high. But, you may still be able to access merchant cash advances or invoices at this level. [B-02] Conclusion Don’t be afraid if you don’t have a business credit score. The vast bulk of small business loan requests will favor your personal credit score over your firm’s credit score. If you’re asking for an SBA loan or a bank term loan, you’ll simply need to produce a firm credit score. Visit Piramal Finance for more blogs on business loans and to take a look at their products and services.

08-11-2023