More articles for you

Your one stop place for everything related to finance and lending

What Happens if I Break My Fixed Deposit Before Maturity?

Are you looking to save or invest money? If yes, a fixed deposit is a great option. It is simple to start and provides competitive FD interest rates. To lay it out, the investor deposits a lump sum into their FD account for a certain period at a predetermined interest rate. After the term, the investor can withdraw the principal plus interest. So, Fixed Deposits are also known as term deposits. When we are short on cash, one of the first things we do is break the FD. While this might seem like a good idea, it often is not. This article will help you decide whether it’s smart to cash out your Fixed Deposit before maturity. We have outlined the potential consequences and some alternatives as well. [B-01] Why it’s Not a Good Idea to Foreclose Your Fixed Deposit Account? Many account holders prematurely break their FD for various reasons. It could be due to a liquidity crisis or reinvestment for a higher return. Although it is a common practice, it might not always be a good idea. Here’s what happens when you close your Fixed Deposit account prematurely. Reduced Interest Rate Premature withdrawal results in a reduced FD interest rate and a penalty. For instance, let’s assume you have opened a 7% one-year fixed deposit. If you withdraw money after ten months, there will be a reduction of 1% on the income received on your fixed deposit. So, instead of getting 7%, you will receive 7% minus 1%, which amounts to 6%. So, your expected rate of return will be considerably lower than the possible return at the time of maturity. Penalty There is a penalty for early withdrawal of FD that results in a lower FD interest rate. It is typically between 0.5 and 1% of the interest rate. Fixed Deposits that include a sweep-in feature and recurring interest payouts will incur penalties. As a result, your return on the Fixed Deposit will be quite poor. The penalty can change over time as financial institutions update their policies. Disrupted Guaranteed Growth In an uncertain financial market, a Fixed Deposit offers a guaranteed return. You know you will not lose that money, even if the return might not be as lucrative as stocks. When you prematurely close your FD account, you lose that guaranteed growth and the possible return. That’s why we keep saying that closing your Fixed Deposit account before the term is over is not a good idea at all. Instructions for Making Premature Withdrawals from a Term Deposit To foreclose on a portion of a fixed deposit, the investor might choose one of these options. Either choose a fixed deposit foreclosure or a partial withdrawal. Foreclosing on a fixed deposit incurs a small penalty. Nonetheless, the depositor’s account gets credited instantly. When making a partial withdrawal, investors can take out a smaller percentage of their fixed deposit’s total value. The withdrawn sum would be deposited into the investor’s savings bank account, and the remaining amount would accrue interest just as it would have if still invested. To cash out the fixed deposit before its maturity date, you can do it in one of two ways: online or offline. Offline process: To cash out a fixed deposit before its maturity date, an investor needs to take these actions: Gather your supporting materials, like your Fixed Deposit certificates and proof of identity. The next step is to visit the bank’s home branch where you opened the FD account. Fill out the form for closing a fixed deposit account and return it to the bank officer. The bank’s representative will walk you through the steps necessary to foreclose on the fixed deposits. The money will get into your account when your fixed deposit is closed. Online process: Each financial institution has its own unique foreclosing fixed deposit method. You must have the internet banking service activated to close a fixed deposit online. Some banks don’t offer online account closing services for FD. In that case, you will have to visit your home branch. Alternatives to Breaking Fixed Deposits in an Emergency Other alternatives to breaking fixed deposits exist to meet urgent financial obligations. Here is a list of some of them: Instead of a fixed deposit, use a credit card. Many Indian banks, including SBI and SBM Bank (India) Ltd., need a minimum fixed deposit amount of Rs. 25,000 or Rs. 12,000 to make you eligible for their credit card rewards programs. Financial security is a condition for receiving one of these cards. Establishing a great credit history is another benefit of using these cards. You can get a loan on your fixed deposit account for quick cash. You can raise up to 90% of your available fixed deposit account balance. The interest rate on this loan is also often lower than that of a standard loan. A bank can use your predetermined amount as collateral instead of your credit score. You can invest smaller funds in multiple fixed deposits. This way, you can spread out your deposits and not depend on any one source. [B-02] Conclusion It can be helpful to break the fixed deposit if you locate a reinvestment opportunity or have a liquidity issue. You need to do the calculation to determine whether the alternative investment’s returns are greater than your fixed deposit return after factoring in the penalty and the lower return. If you’re wondering when you should cash in your fixed deposit, it’s better to do so while it’s still new, like a few months after you created the fixed deposit account. You can get more details on FD on the site of Piramal Finance.

08-11-2023

Cards

What Happens if I Pay Only the Minimum Amount Due on My Credit Card Bill?

Two numbers stand out when you get your credit card bill at the end of your monthly period. The first is the total sum owed, while the second is the minimum payment that you must make. Ideally, you must pay the credit card bill online for the full sum owed. But, if you find it tough to pay off your credit cards each month, credit card companies want you to pay the bare minimum sum. Firms need this in order to keep your account open. So, let’s go into the facts of what this minimum credit card payment is and if it benefits or harms you. [B-01] What is a Minimum Credit Card Payment? The minimum sum due on your credit card is the sum you must pay the credit card bill online by the due date. It is a small portion of the outstanding balance each month. The minimum payable sum is normally 5% of the entire due amount on your credit card. However, it could be more if – You used your credit card to make an EMI payment. You went above your credit limit. You have not paid off your prior month’s dues. The unpaid sum will be added to the present amount. What are the Benefits of Just Paying the Bare Minimum? Paying simply the bare minimum provides the following advantages: It assists you in avoiding a late payment cost. Allows you to better handle your money, notably during a financial crisis. Handles your account without the credit card companies reporting it as unusual. It has no effect on your credit score. Why is Paying the Minimum Due on a Credit Card Not a Smart Idea? If you feel that paying merely the minimum due each month will help you pay off your credit card debt, you are mistaken. Paying the minimum required payments will lower the sum owed for the current month. Yet if you carry on making minimum payments, your debt will be far from paid off. Even if you opt not to make any further purchases until you have paid off your debt, if you merely make the minimum payments, your debt will not be reduced. Instead, it will rise. This is due to the fact that the credit card is a revolving loan. Every day, interest is charged to your outstanding balance. You might quickly and unwittingly get into a debt trap if your funds are not well managed. How Do Minimum Credit Card Payments Work? A minimum payment is a minimal sum that you must pay towards your credit card each month on your credit card debt. To be deemed “on time” and prevent late fees and other fines, you must pay at least this sum. Certain lenders may even raise your interest rate if you make a late payment. Your minimum payment is usually set as a percentage of the due debt or as a fixed monetary sum. It is normally between 1% and 3% of the existing amount on your credit card and covers any fees and interest. In general, if your entire debt is affordable, you must pay the credit card bill online in full to prevent the accumulation of interest. It’s vital to know your credit card company’s minimum payment rules since they differ. Is it Okay to Keep Paying the Minimum Due Every Month? It is critical to pay at least the minimum amount due each month to keep your card active. However, it means you will have to pay high interest charges, and there will be no interest-free credit period. Credit card debts are expensive, and you must pay the credit card bill online in full each month. For times when there’s a financial contingency or cash crisis, you can just pay the minimum due that month. It will prevent late payment charges and your credit score from being adversely affected. Just make sure this is a short-term arrangement and not a habit. Reduce your spending and apply the excess money to your credit cards in case of a constant cash crunch. You might also look for other ways to boost your income, such as working part-time or seeking freelancing jobs. Applying for an online repayment plan can also assist you in selecting which credit cards to actively pay off first. The avalanche strategy, for example, directs your focus to the banks with the greatest lending rates. You may also use the “snowball” strategy, which suggests starting with the card with the lowest credit. If money is tight and you are having trouble making minimum payments, contact your credit card company to explain your situation. They may give you a payment plan, like converting it into EMIs, if you’re having money issues. Credit counseling is another option for people experiencing trouble making payments after applying for a credit card online. Non-profit groups that educate you on good money management skills often give this service for free. They may also assist you in building a debt management strategy to pay the credit card bill online. [B-02] Conclusion Credit cards offer great rewards and perks. They are one of the finest financial tools to get rapid access to finances, but only when used wisely. Many banks provide different sorts of credit cards. Each comes with its own set of rewards and bonuses based on your particular needs. If possible, paying more than the minimum payment on your credit card may save you a lot of money in interest and help safeguard your credit rating. Even better, settling your debt in full will assist you in avoiding paying any interest and maintaining a low usage ratio. Visit Piramal Finance for more blogs on loans and to take a look at their products and services.

08-11-2023

Income tax return

What is Advance Tax Payment? How and When to Pay Advance Tax

When income tax is paid ahead of the due date, it is said to be paid as “advance tax” for the relevant fiscal year. The payer must still provide a full-year income forecast under advanced tax laws. Under advance tax regulations, the payer has to give a full-year income projection. Further, the tax is paid at certain periods depending on the estimation above. To determine whether advance tax payments are required and, if so, how much, the taxpayer must estimate their income and then compute the expected tax on that amount. [B-01] What is Advance Tax Payment? Advance tax payments are due on or before the due dates established by the Income Tax Department. Since payments are made throughout the fiscal year, “pay as you earn” tax is another name for advance tax. According to the I-T Department, the government now accepts advance tax payments at any branch of several banks. You can make advance tax payments online and offline by following the procedure below. Online Advance Tax Payment Procedure After accessing the Income Tax Department’s online payment gateway, please proceed as follows: Make your choice for the kind of tax that applies here: (0020) Corporation Tax. Select “(100) Advance Tax” as your payment type. You choose the month of payment that works best for you. Fill in the required fields with your PAN, email, assessment year, phone number, and address. Click the “Proceed” button. Once you’ve done that, the website will take you to either the payment gateway or the net banking page, depending on how you choose to pay. Make the payment. Always keep duplicates of the challans you use to make payments if you need to reference them when submitting your business’s ITR. Offline Advance Tax Payment Procedure Please visit any participating bank branch to get a copy of the tax payment challan (Challan 280). Please complete this form to the best of your ability. The information requested on the form is identical to its electronic equivalent. Carry the completed Challan 280 form and the cash to the teller counter of the right bank. You pay your taxes with cash or a check. After you hand over your cash and challan, a bank employee will rip out a section of the challan, fill in your payment information, and stamp it as proof of payment. If you pay your taxes in advance, whether electronically or in person, you should retain your receipts securely as evidence of payment. It takes ten days for the change to appear on your Form 26AS. “Part C—Details of Tax Paid” on Form 26AS is where you should provide your tax payment information. Advantages of Paying Advance Tax There is less strain on taxpayers when taxes are paid in advance. People might save stress and financial hardship by making tax payments in advance. It shortens the time spent collecting taxes. If the government can generate interest on the money it collects, it will have more money available for spending. People who pay their taxes in advance are less likely to fall behind on their obligations. It’s useful for financial planning and gives firms a feel for their annual earnings. Who Must Pay Advance Tax? You must meet the following requirements to be eligible for advance tax payments: You need to have a tax bill of at least Rs. 10,000. It would help if you were either a wage earner or the owner of your own business. Profits from stock sales are taxable income. The return on savings deposits. Winnings received from a lottery. Rental income. Income from other sources. Which Tax Forms to Submit? Challan No. ITNS 280 must be submitted by the due dates specified. Challan No. ITNS 280 requires the following to participate: The full PAN specifics Please be sure to post the correct PAN data. Otherwise, your tax payments are credited to the wrong account. Assessment year The tax payment is being sent out ahead of time for the future fiscal year, so be sure to choose the right assessment year for which the tax is due. Choose your preferred method of payment The taxpayer is responsible for selecting the appropriate payment method. The term “advance tax” describes a situation in which taxpayers pay their tax liability before the end of the current fiscal year based on their expected yearly revenue. This kind of tax is known as self-assessment tax and is due if the payment is made after the fiscal year ends. A CIN number will be issued upon successful payment. You will need this CIN to file your tax returns, so write it down. Finally, double-check that the IT department has indeed obtained the ITNS 280 online payment. Who Needs to Make Advance Tax Payments? If your annual tax bill is $10,000 or more, you must make an advance tax payment following Section 208 of the Income Tax Act. In the case of FY 2019-2020, if your tax burden is expected to be more than $10,000, you will be obliged to make an advance tax payment in the current year. Those with income from sources other than a regular wage must pay taxes in advance. Your annual income must be greater than the threshold for professionals, self-employed individuals, and businesspeople. Earnings from stocks and bonds, interest from savings and checking accounts, rent, and other sources of rental income all count. Those above 60 do not have to pay the advance tax. Advance Tax Payments: Exemption People aged 60 and older are exempt from the advance tax payment requirement. Those who receive a salary and fall within the TDS net do not need to submit an advance tax payment. Non-wage income, however, is subject to taxation in advance. It includes interest, rent, capital gains, and other forms of investment income. The need to pay the advance tax is waived if the amount of TDS deducted is greater than the amount owed for the year. [B-02] Conclusion Individuals with income from sources other than a regular paycheck must make advance tax payments. It includes income streams such as rent, stock appreciation, interest on savings accounts, lottery wins, etc. You pay for it at certain banks or online. Income tax for a certain fiscal year paid in advance is referred to as “advance tax.” Generally, taxes are expected to be paid when a corresponding income is received. Nonetheless, the tax laws of the advance tax require the payer to provide an annual income forecast. You can also go through the website of Piramal Finance to clear all your doubts.

08-11-2023

Schemes

Steps to Fill Out an NPS Application Online to Avoid Any Delay

Investment has become the buzzword of the twenty-first century. There are various short-term and long-term investment schemes in the market that yield higher profits. And out of many such long-term investment schemes, the NPS scheme is one viable option. The goal of the National Pension System (NPS) is to give members greater control over their financial destinies by encouraging them to save regularly during their working years. [B-01] What is the National Pension Scheme, and what is its goal? The National Pension System is an initiative by the government to ensure social security among the retired class. It is a long-term investment scheme that allows you to invest regularly to build a corpus and get a salary after your retirement. The goal of the National Pension System is to instill the habit of saving money each month for a comfortable retirement. This is a long-term approach to ensuring that all Indians have access to a secure retirement fund. The PFRDA authorizes professional fund managers to invest in government bonds, bills, corporate debentures, and shares following the permitted investment conditions. The rate of return on the selected assets would determine the growth and accumulation of these payments over time. When regularly withdrawing from the National Pension System, members can take a portion of their earned pension savings as a lump sum or use it to purchase a life annuity from a PFRDA-authorized life insurance company. The Pension Fund Regulatory and Development Authority established the National Pension System (NPS) in 2004 for people to save money for their retirement (PFRDA). A National Pension System account can be opened by anybody between 18 and 60 interested in starting to save for retirement. An online guide to joining the NPS Citizens can sign up for a voluntary social security program called the National Pension System (NPS) online in the United Kingdom. In this case, the Pension Fund Regulatory and Development Authority (PFRDA) is in charge. It’s meant to be a pension system for those nearing retirement. How do you verify the amount in your NPS account? Finding out how much money is in your NPS account is easy. You can access your NPS account balance online through the web interface or the NPS tax benefit through apps for Android or iOS. Both your PRAN and your password will be required to sign in. After signing into your NPS account, viewing your available funds is a breeze. Step-by-step guide to funding your NPS account online Your NPS account can receive online deposits via either the National Pension System website or the NPS mobile app, which is compatible with Android and iOS devices. If the subscriber opens an online NPS account, they can fund it through various payment methods, including net banking, debit card, and credit card. Both of the online ways can be used to put money into Tier 1 and Tier 2 NPS accounts. If you visit the website of the NSDL, you will be able to access the details of your National Pension System account over the internet. If you are an individual subscriber to the NPS, you may access the Subscribers-NPS Link by clicking the Login button located in the website’s upper-right corner. Use the Registered User’s Regular link at the top of this page to enter the NPS. You can access your NPS account by entering your Permanent Retirement Account Number (PRAN) and password in this space. After successfully connecting to your National Pension System account, you can access your NPS account statements. These statements include information regarding your account activities (including your Tier 1 and Tier 2 contributions and withdrawals) and your holdings in the National Pension System. Downloadable versions of the NPS account statements may be obtained by selecting the “Transaction Statement” option, which furthermore grants access to the “Holding Statement” and the “Transaction Statement.” You will then receive an email with your NPS Tier 1 and Tier 2 account balances, and you will also be able to view them via a statement that can be downloaded from the website. You will get an electronic statement of your National Pension System account regularly. This statement will detail all transactions, including deposits and withdrawals, that have occurred during the relevant period. How to let the frozen state of your NPS account melt? Your account may be “frozen” if you do not contribute a minimum of one thousand dollars to Tier 1 of the National Pension System throughout each fiscal year. If you pay the $500 fine, your National Park Service account will be unfrozen for the remainder of the fiscal year (either offline or online). As a point of clarification, this punishment is in addition to the mandatory annual minimum contribution of $1,000 to NPS Tier 1. To get your frozen NPS account unfrozen, you will need to send an NCIS, which stands for an NPS Contribution Instruction Slip, to one of the permitted POP-SPs (Point of Presence – Service Providers). POP-SPs are the entities that have been delegated the responsibility of collecting contributions from members of the general public on behalf of the National Pension System. To complete the NCIS form, you will need your PRAN and payment details (cheque or DD number). To have your NPS account unfrozen or activated, you can make any nps online pay in the form of cash or checks. [B-02] Conclusion The goal of the NPS is to help its members save regularly throughout their working years so that they may retire with more security and autonomy. The goal of the National Pension System is to help individuals establish a pattern of saving a little money each month for their retirement. Our plan considers the big picture to ensure that all Indians have access to a secure retirement fund. Piramal Housing Finance may help you reach it!

08-11-2023

Education

Steps to Ensure a Hassle-Free Student Visa Application Journey

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

08-11-2023

Home Loan

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

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

08-11-2023

Other

How to Craft Effective Company Goals

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

08-11-2023

Other

The Top 5 Gold ETFs You Should Invest in 2022

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

08-11-2023

Personal Loan

Things to Consider While Choosing a Personal Loan Lender

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

08-11-2023