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Home Loan

What is Better Between a Gold Loan and a Property Loan?

People are now more welcoming to loans than ever. Loans are no longer seen as the last option for getting cash. Instead, they are seen as a way to manage money. People are happy to take out loans with low-interest rates and pay them back in easy installments because it helps them keep their savings. Gold loans and Loans Against Property (LAPs) are two examples of collateral loans. They don’t require selling valuables as a means to cover monthly payments. Both loans have low-interest rates, and you can use them for anything you want. Also, compared to other loans, there aren’t as many rules. The question here is whether a property loan or a gold loan would be better. [B-01] Difference Between a Gold Loan and a Property Loan When people are in financial trouble, they often get personal loans. These loans are made to help you out of a sudden money jam. The high-interest rate, however, makes it hard on the pocket. And what if you don’t qualify for a personal loan? Or what if the amount of money you need is much more than what you can get with a personal loan? In this case, you might consider using the money you’ve saved to get out of your tight financial situation. But it might not always be a good idea to sell assets like mutual funds and fixed deposits. Here is a quick look at how a gold loan differs from a loan against property. Collateral Money lenders will keep the collateral you provide as protection for the loan. It will be called security. You can make monthly payments until you have paid the debt in full. This can be done in the form of EMIs. If you can’t repay the loan for any reason, your lender will use the pledged collateral to get back the amount you still owe. Since both a loan against property and a gold loan are secured loans, you will need to put up an asset as collateral to get them. You must put up gold jewelry or coins as collateral for a gold loan. For LAP, on the other hand, you have to put your commercial or residential property up as collateral. Criteria for Eligibility To get a loan, you must first be eligible for one. When someone wants a gold loan, the lender doesn’t care much about their job, credit score, etc. This, in turn, helps all possible borrowers, especially when they need money quickly, because it is more likely that their loan applications will be approved. Most gold loan companies will give money to anyone between the ages of 18 and 75. This is so long as the gold jewelry or coins put up as collateral meet their requirements. On the other hand, the requirements for getting a LAP are stricter than those for getting a gold loan. All lenders examine age, income, property worth, previous liabilities, business stability or continuity, and credit history before approving a loan application. The Time it Takes to Get a Loan Loan processing time is the amount of time it takes to get the loan. This is important when someone needs money quickly. Most of the time, gold loans are easy to process and get approved. Also, you can get the money quickly, which makes it a great way to deal with a financial emergency. Getting a gold loan is easy, and the loan is processed immediately. After the paperwork is turned in, the loan amount is usually processed in 30 minutes. On the other hand, a loan against property takes longer to process than a gold loan because the lender needs time to check the property documents. Repayment Tenure When deciding which loan to get, the length of time you have to pay it back is very important. The longer the borrower has to pay back the loan, the lower the EMIs are, and vice versa. But a longer term makes the loan more expensive in the long run. Most gold loans have short payment terms. They can be repaid in as little as a year or between two and three years. However, a loan against property has a 10- to 20-year repayment term. Paperwork Requirements Borrowers and lenders can save time and effort by using a gold loan application procedure to streamline the application and approval processes. Lenders only need a few documents before giving out the loan. Gold loans don’t usually require as much paperwork as property loans secured by real estate, but a lender may still want proof of employment, identification, and domicile. [B-02] Conclusion Whether you should get a gold loan or a loan against your property depends on what you need. Gold is a valuable thing that most people own. It moves around a lot and is worth a lot on the market. Since you only have a short time to pay back a gold loan, it would be best to borrow a small amount. LAP doesn’t have a high interest rate and gives you a long payback time. So, it’s the best option if you need to borrow a lot of money. A gold loan should be your initial choice in a financial emergency. This is because it is easy to get and requires little paperwork. To learn more about gold loans and property loans, check out Piramal Finance, and the products and services they offer.

08-11-2023

Personal Loan

Things to Know About Loans Against Shares and Securities

Finding a way to abandon your stock and sell it anyway? Then why not invest in them rather than just selling them for pennies? Yes, we are talking about loans against shares which you should think about giving a shot. In this article, we are going to discuss getting a loan against securities, the benefits of having one, the eligibility criteria, and how to apply for this loan online. [B-01] What is a loan against securities, and why is it taken? So, a loan against securities is a type of loan in which you borrow money from the lender by using your shares, mutual funds, or other insurance policies as collateral. The amount of money that the banks let you borrow depends on the value of your shares. You can still withdraw that money from the account and use it to pay your debt to the banks. Assume you have 5 lakh rupees in shares that you used as collateral for your loan. Now, if you withdraw 1 lakh rupees from your shares, you only have to pay the interest on 1 lakh, not on the entire amount. It can be a very good initiative for you if you are looking for an emergency fund but have nothing except your shares, which you want to dispose of anyway. As a result, taking out a loan against shares allows you to invest the loan amount in the venture of your choice while also paying your installments. What are some of the benefits of taking a loan against securities? Quick disbursal: If you apply for a loan against shares, you can get a quick disbursal of money within one to two days. Especially, if you apply through net banking, you can even reduce the disbursal time to half. Interest only on the used amount: This means you only pay interest for the money you withdraw out of the total value of the shares. In your shares, if you have 2 lakh rupees and you withdraw 30 thousand rupees, then you have to pay the interest for just those 30 thousand rupees. Low-interest rate: The loans you take against your shares are often charged at a low rate of interest. Banks see your shares as good collateral and charge you low-interest rates. If you are good at negotiating, then the interest rate might even get lower. Zero to minimal processing charges: Banks often don’t charge you processing fees, and even if they do for the loan you take against your security, it is almost negligible or so little that it won’t hurt your pocket. Flexible loan limits: Different banks have different loan limits, but the best thing is that they give you flexible options for a loan against shares. You can tailor your loan amount according to your requirements. Most often, you can apply for a loan in the range of 1 lakh rupees to 20 lakhs, which varies from bank to bank and depends on your credentials. No documentation requirement: This is another advantage of taking out a loan against securities, unlike other types of loans. You don’t have to show any of your documents while applying for a loan, which is against your security. In some cases, banks might ask for your legal documents to ensure certain things, but it isn’t a general phenomenon. No penalties for prepayment: Unlike in other types of loans where you have prepayment penalties, you are not penalized for taking a loan against securities. If you have your installment ready before the proposed date, you can simply go and pay without worrying about any charges. Important things to keep in mind about loans against shares and securities include: The time is always not flexible: Though these types of loans seem appealing, there is always a setback to tenure. Some banks provide a maximum of 3 years to repay the loan amount. These types of loans are short-term in nature, and you have to think about this before you apply for them. Make yourself aware of other types of extra charges: Though there are zero to minimal processing fees, there could be other types of fees that you are not aware of. So, while applying for a loan against shares, make sure you ask about fees for stamp duty on the loan amount, pledge creation charges, etc. 3. Not everyone who has shares goes on the list: Not everyone who has shares and securities is sanctioned by the banks; rather, banks allow those who have shares that are potentially doing well in the market. Banks often prefer the top 100 companies that are doing well in stocks, mutual funds, etc. for loans against shares. For individuals, the rules are not that strict, and the eligibility is pretty decent. What is the eligibility to get loans against shares and securities? There are very few requirements to be eligible to apply for a loan against securities. First, you should be an Indian resident who has reached at least 18 years of age. And second, you must have a minimum security value, which differs from bank to bank. An amount of about Rs. 4 lakh is considered the benchmark for applying for a loan against shares. [B-02] Conclusion If you just want to get rid of your shares and sell them for a lower price for an emergency, you should rather use that money as collateral to get a loan against shares. That will help you to cover your expenses, and at the same time, you can easily repay through instalments. If you want to know more about loans, different investment schemes, and finance, you should consider visiting the official page of Piramal Finance. They have decent services and highly engaging content on these topics on their website.

08-11-2023

Other

What is APR? Understanding How APR is Calculated

Financial firms will charge you an APR when you borrow or invest money. It’s the interest that a lender charges on a loan over a year. The Annual Percentage Rate is shown as a percentage of the amount borrowed, and the borrower must pay both the principal amount and the APR. The APR is a way to figure out how much a loan will cost you over a year. It shows the loan’s annual interest rate, processing fees, penalties, and other costs. [B-01] What is APR or Annual Percentage Rate? The annual percentage rate (APR) is the amount of interest added to a loan or investment every year. It is shown as a percentage of the loan amount, expressing the total yearly cost of borrowing money. This includes any fees or extra transaction costs without considering the yearly compounding of interest. The APR gives you a single number to compare different loans, credit cards, or investments. Importance of Annual Percentage Rate One of the most important things to look at when getting a loan is the interest rate. Because of this, you will be drawn to the banks with the best APR. Before you take out a loan from a bank, you should carefully consider all of the fees, even if they seem minor. APR makes it easy to see how much a loan costs. Its primary goal is to assist you in comparing loans better. But it’s important to remember that APR doesn’t consider compounding and doesn’t work for loans with changing interest rates. So, knowing the annual percentage rate (APR) allows you to evaluate loans beyond the total cost. How Does APR Work? The APR is an excellent way to determine how much a loan will cost. Let’s say you have taken a loan of $25,000 with an APR of 5% for five years. That means you will have to pay $470 every month. This payment goes towards both your principal and interest. As the months go by, the monthly amount remains the same, but the percentage breakdown that goes towards the principal and interest changes. You will begin paying less interest. In this case, you will pay $3,306.88 in interest in total. How to Calculate APR? The annual percentage rate varies from bank to bank. You can use the APR calculator to figure out the annual percentage rate that the bank charges for a loan. If you don’t have a calculator, you can use a simple formula to figure it out by hand. Steps for Computing APR The two most important parts of the APR are the loan fees and the compound interest rate over the year. Based on these factors and the terms of the loan, you can easily calculate the APR using these simple steps: Find the rate of interest. Add administrative fees to it. Divide it by the principal amount. Divide it by the total number of days in the term of the loan. Multiply the amount by 365. To convert it into a percentage, multiply it by 100. The Formula You can calculate the APR of a loan using this basic formula APR= [{(Fees + Interest)/ Principal}/ n]365*100 Where: Interest = Total interest paid over the duration Principal = Loan amount n = Number of days in the loan term The Best Way to Reduce Your Current Loan’s APR People who already have loans may want to bring down their APR. If it is high, the monthly interest payments will be high. Since APR is the loan’s interest rate, lowering it could make EMI payments less each month. Here are some ways to bring down your APR: Improve credit The APR of your loan is based on your credit history. Check your credit report before you talk to a lender. If you have bad credit, it’s unlikely that you’ll get a lower APR. Loans with high interest rates go to people who are a risk. So, to lower your APR, you should raise your credit score. Pay Promptly Borrowers must show that they are good at paying back loans and managing their credit if they want a lower APR. Banks only give lower rates and fees to people who pay their bills on time. It shows a customer’s creditworthiness. You must be a responsible borrower who makes timely payments to get a lower APR. Once you prove you can be trusted, the bank might lower your APR. Discuss with the Lender If you don’t have a good credit score but still want to lower your APR, talk to the lender and tell them why it’s crucial. If you pay your EMIs and other bills on time, the lender may lower your APR. The lender may agree to your request if you are honest about being sick, losing your job, or hurting your finances. Transfer loans If your bank or lender doesn’t offer a lower annual interest rate, you can move your money to a different bank that does. With this choice, you can switch your loan to a bank with a low-interest rate. Some banks charge fees for transferring balances, while others don’t. The APR will go down when you switch to a bank with a lower interest rate. [B-02] Conclusion APR is an important number to keep in mind when choosing a loan. It gives you a clear idea of how much the loan will cost, so you can plan how you will pay it back. It is also very helpful when comparing loans since the APR lets you choose the loan that will cost you the least. So, make sure you figure out the APR of the loan so you can pick the best one. Piramal Finance is a great financing option for everyone. Visit their website to learn more about the products and services they offer.

08-11-2023

Other

Things to Know While Doing Intraday Trading

Trading in the equity market is tricky, even for someone with a lot of expertise in the area. Things get even tougher when you opt for intraday trading. Here, you have to finish buying and selling stocks on the same day. Hence, intraday trading strategies will differ a lot from interday trading. Your focus while picking ‘intraday stocks for today‘ is to make a quick profit and not hold on to the position. Whereas, with interday trading, you are in it for the long haul and invest your money in a stock for extended periods. Hence, the risk present in intraday trading is much higher than in interday trading. But if you are up for the task, there are chances you can make a lot of money with some unique intraday trading strategies. Read on to learn about the key aspects of intraday trading before you select suitable ‘intraday stocks for today.‘ [B-01] Things to Know While Doing Intraday Trading Before you start creating your intraday trading strategies to select the best intraday stocks for today, there are some key things that you must learn about this strategy: Demat Account You must have a demat account if you want to engage in this type of trading. This will enable you to execute the deals as quickly as you desire, and you’ll benefit from sudden changes in stock prices. On the other hand, if you depend on a dealer, it might take some time to complete the trade. You might then end up losing money with your intraday trading strategies. Be Wise Do not jump into the equity market just because everybody else is doing it. When you invest money in equity, there is always a risk. This risk increases when you buy and sell on the same day. There is always the possibility that you will suffer losses as a result of unexpected events that occur that day. So, it is wise to invest only the money you can spare. It will ensure that your family’s security is not put at risk. You can increase the amount as you gain experience and pick the best intraday stocks for today. Prepare a Strategy There is an old saying, “Failing to plan is planning to fail.” This holds true in the case of intraday trading, as the risk element is very high. If you invest your money only based on a hunch, there are chances you might lose it. Instead, do good research and look for intraday stocks for today that meet your risk profile. Have a strategy in place when you invest the money to reduce the risk and boost your chances of making a profit from the trade. Transaction Charges Most platforms charge a fee on every trade you complete using intraday trading. This would mean you will have to pay a lot of money as charges if you buy many intraday stocks for today. If you want to keep this cost under control, you need to plan your trades with a decent volume size. Make sure that instead of doing many small trades in a day, you opt for a few larger trades. You must select a platform that levies lower charges on every trade. Average Out the Cost No one in history has been able to time the market to perfection. Therefore, it will make sense if you purchase some stock every few hours instead of making one large trade at the start of the day. This will help you average out the intraday stock price for today and reduce risk. Hence, you will be better able to correct your position if the stock price takes an adverse turn. Stop Loss One mistake that most traders make is getting too greedy. Thus, they hold on to an adverse position, hoping the price will soon reverse and go in the desired direction. But this is one of the worst intraday trading strategies you can use. Here, the chances of increasing the losses are very high. Hence, you need to put a stop-loss order on every stock you buy. This will make sure that after the price goes below a certain level, the trade is completed itself. Hence, your losses are limited to a certain level. Book Profit Whenever you pick intraday stocks for today, you must ensure not to get greedy. If the price is moving in a given direction, this does not mean that it will continue doing so. It might reverse and start going in the opposite direction. This will reduce your profits and might even lead to a loss. Hence, you must book the profit once the price crosses a given level. This will help you make a decent profit on every trade that goes as per your target. [B-02] Choose Carefully When you pick intraday stocks for today, you must take due care. Do not pick a company based only on its claims or just because others are doing it. Do a lot of research on the company to see its track record. If the stock prices for this enterprise are volatile, then you must opt for it only if you are sure and have done your research. Select a stock with a good track record and a transparent approach. You need to have sound intraday trading strategies in place to reduce the risk and boost your chances of making a profit. If you need more clarification on this type of trade, you must first learn more about it. Piramal Finance has a lot of articles and blogs on intraday trading to help you learn more about it. This will give you more confidence while engaging in the equity market.

08-11-2023

Stocks Markets

Things to Know While Picking Stocks for Intraday Trading

“Best Intraday Stocks for Today“, is a common search for most investors new to the stock market. When it comes to the equity market, there are two types of investors, interday and intraday. Based on your risk-taking profile and the availability of funds, you can select either of these options. Both of these options can be used to profit in the equity market. But to earn profits, you need to do some research before you purchase shares for trading. Read on to learn the key aspects related to intraday trading. [B-01] What is Intraday Trading? Intraday trading is the process of buying and selling stocks on the same day. On the other hand, interday trading is the process of holding the shares for some time and selling them at a later date. Of these two, investors opt for interday trading, and traders opt for intraday trading, where they want to make quick profits. If you are looking for the best intraday stocks for today, you must check out the intraday trading tips shared here. These tips will help you make wise calls when it comes to opting for the best stocks that can help you make good profits. Read on to learn some useful intraday trading tips to help achieve your goals in the equity market. Tips for Picking Stocks for Intraday Trading Every intraday trader who is active in the market wants to make a profit by selecting the best intraday stocks for today. But it is not an easy task, as the market can move in any direction. You should not rely on hunches to choose the right stocks for intraday trading because there are more chances of getting it wrong than right. You need to learn some crucial details before picking a stock for intraday trading to boost your chances of making a profit. Here are some key intraday trading tips that you must check out: Stay away from volatility: Many traders tend to go for stocks that see radical shifts during the day. While they may seem ideal for intraday trading, they are not. You could lose a lot of money if you make the wrong call and the stock moves in the opposite direction. You must select a stock only after you have done research on it and the company. This will help you avoid huge losses later on. If you still want to trade, you must set a stop-loss limit on the trade. This will ensure that the trade is completed as soon as the price goes below a given level. It will help minimize your loss if you make the wrong call. Do not be greedy: This is also one of the most crucial intraday trading tips. A mistake that most traders make is getting too greedy and not closing a position when the time is right. You must learn that no one can time the market. Rather than waiting for the prices to increase, you must set a target price. This will ensure that you make the desired profit from trading, as the stock will be sold as soon as the price reaches that level. Otherwise, the trend may begin to reverse, resulting in lost profits. News-sensitive stocks: There are stocks from some sectors that are highly responsive to the news. This means if there is positive news from that sector, the stock price will increase, or vice versa. If you want to select the best intraday stocks for today, these stocks can make the cut on your list. To make the most of these stocks, you must have followed the news for the last several days. However, risks still exist, as any unexpected news can lead to radical price shifts. Research and analysis: The equity market is one place where your hunches have more chances of going wrong and causing losses. Avoid following your instincts when you are looking to select intraday stocks for today. You must do due diligence on a company before you pick a stock. It will also help if you choose a reputed company with a transparent approach. This will help you make an informed decision regarding trading in the stock of such a company. You must also learn some research methods to be in a better position to make a call. Play safe: This is one of the most vital intraday trading tips. The equity market is full of risks, and there are chances that you may lose a lot of money in one day during intraday trading. Hence, it would be best if you were wise with your money. Do not invest all your money at once. Look at the stock movement during the day and make small trades at different times. This will help average the price. Also, you must only invest the money you can spare. Do not spend any money that is meant for any urgent expense. [B-02] Summing Up If you want to make a quick profit in the equity market, these intraday trading tips will surely help you. But remember, there is no guarantee of profits in equity markets. So, you must have a diverse profile in terms of your investments. Hence, you need to invest in various schemes to hedge your risks. To learn more tips to help you manage your money better, visit the Piramal Finance website. They have many blogs and articles that will help you plan your finances better.

08-11-2023

Personal Loan

Things You Can Do with a Personal Loan This Diwali Season

Diwali is more of an emotion than a festival. During this festive season, we give in to buying luxurious items without caring about our finances. We all have our dedicated Diwali shopping lists, no matter how much it costs. In this season, we tend to overspend on household appliances, clothing, and gifts. But this is also the time when our finances can go wrong. Shopping during the festival season can cause a huge hole in our finances. Here is where a shortcut comes into the picture: buying stuff with a personal loan. Apply for a personal loan if you cannot control your spending and your finances are out of control. To get a festive loan, you must first check your personal loan eligibility. [B-01] What Can You Buy With A Personal Loan This Diwali? People take personal loans for various reasons. In this section, we will discuss the things you can do with one. 1. Renovate your homes This Diwali, make your homes look festive and new. Get a festive loan to renovate the space. Either paint the house or add new décor items. Also, you can replace old paintings and buy new ones. It’s beautiful to watch your house transform during the Diwali season. You can decorate your home in many ways. 2. Purchase a new home What better time to buy a home than Diwali? Having your own space during the festivities is a great joy. It is the perfect gift you can give your family. This is the best time to buy a home, as real estate professionals believe it to be auspicious. Furthermore, this period provides several opportunities for home buyers. 3. Buy gold In India, gold has a special place in every woman’s wardrobe. Gold never goes out of fashion. It is not only a fashion statement but also an investment. As we know, gold prices are rising each day. Purchasing gold with a personal loan is the best way to put the money to use. 4. Take a vacation This Diwali season is a great time to take your family out. There is no better way to create memories you will cherish for life. But if you cannot afford to bear such expenses, you can take out a personal loan and pay off the expenses of a vacation in regular instalments that you will repay over the coming months or years. So, what are you waiting for? Get an instant personal loan today. 5. Buy new clothes For many people, Diwali means buying new clothes for every family member, even if you cannot afford it. But if shopping is a greater priority than your financial future, securing a personal loan is easier than ever before. The festive loan will allow you to shop for everyone when you do not have enough money to afford it. 6. Get electronic gadgets If you are an electronic fanatic, it’s the right time to buy all of them. Bring home the latest and most expensive smart TV, smartphone, and speakers. With a festive loan, you can bring home all these expensive items at discounts. 7. Bring home silverware Diwali is not only a time to buy gold, but also silverware. Many people think getting silver during Diwali brings luck. A personal loan can help cover the cost of the purchase. Make sure to first check the personal loan eligibility before applying. What Should You Consider Before Taking a Personal Loan? Here are a few things you should do before you take a personal loan. Take an eligibility test: Before you apply for a loan, you need to check your eligibility. If you apply without checking, your application can be rejected. Compare the interest rates: When taking a personal loan, compare the rates between lenders. Today, different lenders provide varying interest rates. Check your credit score: Getting a personal loan depends on your credit score. You can get a larger loan if your credit score is good. Avoid distractions: There will be many attractive offers while applying for personal loans. But you should not choose a higher loan amount than you need. Why Personal Loan is the Ideal Choice for Funding Expenses? Personal loans are the right choice, whether it’s for a home renovation or an expensive gadget. You can choose the loan tenure, convenient EMI options, and more. All you need to fill out is an online loan application, and you can buy everything you want. Check for personal loan eligibility before you apply. [B-02] The Bottom Line This Diwali, don’t let money stop you from buying what you need. Let the holiday season bring joy and happiness to your lives. Take a personal loan eligibility test today. If you are eligible, apply for a suitable loan. Once it is approved, you will receive the money instantly. Get the best clothes and gifts for your loved ones. But remember, personal loans attract significant interest charges and can mean you will have to repay them from your paycheck as a liability every month for years to come, so choose wisely. If you love reading finance-related content, visit the Piramal Finance website.

08-11-2023

Other

Things You Must Do to Keep Your Account Safe from KYC Fraud

Every year, August 1 is marked as “KYC Compliance and Fraud Prevention Day.” This day is to make people aware of KYC fraud and how to be safe. As per the RBI, all banks and NBFCs must have KYC (know your customer) details for all their customers. This rule requires that both new and old accounts have all the details of the account holders. You can finish this process online or by going to the office of the bank or NBFC. But now, many scammers have started fooling people by posing as officers and asking for details and an OTP for KYC verification. Many people fall prey to them and lose a lot of money from their accounts. Banks, NBFCs, and the RBI are trying to make people aware of KYC fraud, which is why KYC Compliance and Fraud Prevention Day has started. While it is hard to get rid of this scam entirely, there are still many steps that you can take to be safe from KYC fraud. Read on to learn what you must do to keep your account safe from KYC fraud. [B-01] What is KYC fraud? KYC fraud is a big issue in present times. With updates in technology, fraudsters have also updated their methods. They will send you a WhatsApp message, SMS, or email asking you to click on a link to complete your KYC. To make you panic, they will state that either your account will be closed or frozen, and you will not be able to use the money. However, if you click on the link, you will be directed to a fraudulent website where they will attempt to steal your personal information. This information is then used to defraud you by taking money from your bank account or online wallet. Some fraudsters may also call you, posing as bank or NBFC workers. They will inform you that your account’s KYC has not been completed and will then request some information. Once they get these details, they will ask you to share an OTP sent to your phone. But as soon as you give the OTP, money is gone from your account or wallet. Many people fall prey to KYC fraud, which is why KYC Compliance and Fraud Prevention Day was started. How to keep your account safe from KYC fraud You can take many steps to keep your account safe from KYC fraud. Here are several crucial aspects you must focus on: Never share your details: Your bank or NBFC will never call to ask for your details. Also, they will not send a WhatsApp message, SMS, or email for this. They have all of your information in their records and can easily retrieve it from their system. Even if any of your accounts are not KYC compliant, you will receive a letter or call asking you to come to the branch with the KYC documents. As a result, never share your KYC information over the phone or the internet. Make it a point to visit in person and then complete the process. OTP is not required: In the finance world, OTP is used to either log in to your online account or complete a money transfer. There is no need to share an OTP for KYC. If any person is asking you for an OTP for KYC, it is a red flag. Do not fall prey to this KYC fraud. There is no need to reply to any message or answer any call asking for an OTP to complete KYC. Look for errors: While scammers think they are smart, they are not. Highly qualified people at the head offices or approved agencies draft the messages or emails shared by banks and NBFCs. They pay a lot of attention to grammar and spelling errors. So, read the message or SMS carefully and look for spelling or grammar issues. If the message reads incorrectly, it is better to ignore it or report it to the cyber cell of the local police. Quality of message: As stated above, highly experienced people in head offices design emails and messages for banks and NBFCs. If not, people at a marketing agency create the designs. Hence, the quality of emailers will be quite good. It will likely be a KYC fraud if you get an email with grainy graphics or funny fonts. CVV and PIN: If you use a debit or credit card, you must know that the CVV and PIN are two crucial details. These details are vital to completing payments through debit or credit cards. They have nothing to do with your account’s KYC. So, to be safe from KYC fraud, you should never reveal your PIN or CVV to anyone. If you share these details with anyone, you are at serious risk of becoming a victim of fraud. Remain calm: No bank or NBFC officer would threaten to suspend your account in the absence of KYC. You should remain calm and refuse to share such details with anyone. For any doubts, call the official helpline of the bank or NBFC. No bank or NBFC would ever send such a message to a customer. Their tone will never be threatening. [B-02] KYC fraud is a serious problem, and many people fall prey to it daily. Banks, NBFcs, and RBI need to create more awareness around this issue. It would also help if you also learned more about the menace of KYC fraud. For the latest facts and tips on staying safe from KYC fraud, you can visit Piramal Finance. They have many articles and blogs to help you learn how to keep your account safe from fraud.

08-11-2023

Personal Loan

What is a Collateral Loan and How it Works

When you are willing to offer some kind of collateral, which means security, getting a loan can be much easier. With possible lower interest rates, collateral loans help secure the amount you’re taking. If you take out a collateral loan and can’t pay it back, you risk losing a useful asset. But how does a secured loan work? Read on to know how lenders assess the worth of your collateral to figure out the value of your loan. [B-01] What Are Collateral Loans? A collateral loan is also known as a secured loan. It means that the loans are secured by the assets you own. Also, if you fail to repay your loan, the lender can take the collateral. It doesn’t matter if it’s a car or a home. Collateral loans may have a higher loan amount as compared to an unsecured loan, such as a credit card. Collateral loans may have a lower interest rate compared to an unsecured loan. When your credit history is unstable or your income is not enough to qualify for an unsecured loan, this may be your only available loan option. There are several kinds of secured loans. For example, your mortgage is a secured loan. If you will not pay your monthly funds and are not able to reach a fair settlement with the lender, you can lose your home if you have kept your home as a security. How Does a Collateral Loan Work? You can hope for better loan terms with collateral loans in comparison to unsecured loans. This can be a larger loan amount, a reduced interest rate, or a loan term that is longer. Before approving a secured loan, a lender will measure the value of your collateral. To do so, they will evaluate the market value of your asset. In the case of a mortgage, they will consider the market price of the home. Then, they will calculate the extent of the loan by giving you a ratio of the cost of the collateral. The lender will take some factors into account. It includes the possible resale value of the home you’re assuming and the nearby area when making a mortgage decision. By using a mortgage, a lender will provide a loan-to-value ratio (LTV) to the loan. It shows the value of the collateral. You can usually expect to pay higher closing costs and more interest charges with a higher LTV. Also, you will need a higher down payment. Suppose your LTV is 80%. In this case, you will know that the lender is prepared to give you a large amount of money. But, you will still be responsible for paying the rest, 20%, from your pocket. What Can Be Given as Collateral? You may use the following items as security for collateral loans: Vehicles: A machine or a vehicle is viewed as a movable asset. Movable items with a high resale value can be used as collateral for loans. To get a loan against a movable asset, a lender may demand that the person give the actual item to the lender. Gold and other valuables: Since gold is valuable, it is suitable as security for secured debt loans. So, gold bars, coins, and jewelry can be used as collateral. Apart from gold, other valuable items like antiques and works of art can be used as collateral for loans. Property or Land: The most typical type of collateral is real estate, such as land or property. Financial firms can use your house or a large plot of land as collateral to lend money to you. Personal investments: You may also use your personal investments as collateral. Bonds, stocks, and mutual funds are included. A bank or an NBFC may offer a collateral loan in exchange for the use of sovereign gold bonds as security. The Process to Get a Collateral Loan If you think a collateral loan is the right choice, you can get it approved by following these points: Check your credit Even if your credit isn’t perfect, getting a loan with assets may help you get accepted. Yet, it is still vital to ensure that your credit is as strong as it can be to get the best collateral debt rate and payback terms. Your credit reports are given for free. When you apply for a loan, review them for faults or bad marks that you’ll need to correct. Select your assets If you apply for a house or vehicle loan, the asset you’re funding will serve as collateral. However, you have choices if you take out a secured personal loan. Assess what assets you have to secure your loan. Choose liquid and readily available assets, such as money in a bank account. Collect your papers When you’re about to apply, it’s a good idea to collect all necessary paperwork and data ahead of time. Personal information is one kind of data you may be asked for. Look for the best asset lending interest rates Before starting the whole application procedure, it is essential to get quotations from various lenders and check collateral loan rates & terms. You can get rates quickly online, which usually only require a light credit check and have no effect on your score. Select a lender and apply Once you’ve found an offer that meets your budget and requirements, you can begin the application process. It is important to understand that formally asking for a loan will lead to a hard credit check, which will be recorded on your credit scores. It should have a minor influence on your credit score. Benefits of Using Collateral The benefits of using collateral are given below: For many people, giving collateral to get a secured loan can be a great choice. This is highly crucial if your credit score is fair or low because using collateral can increase your chances of getting a loan. It also helps you get a larger loan amount. Collateral can also allow you to lower your overall interest costs. This is because a secured loan carries less risk for the lender than an unsecured one. It makes them more likely to lower the interest rate they charge you. [B-02] Conclusion Secured loans have become a lifeline in times of need. This loan can be used to cover emergency expenses as well as fund corporations and expansion plans. You can now easily apply for a low-interest collateral loan online thanks to advancements in technology. For more information, you can visit the Piramal Finance website and explore their products and services. Read various informational blogs posted by them.

08-11-2023

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What is Diversification? How to Do it?

The world of finance has many tactics that you can use to create a great portfolio. One such method is known as diversification. Wondering what the meaning of diversification is? It is a financial concept everyone should know about and use, yet not many people understand it. This blog explores the concept of diversification and how you can apply it to your finances today. Diversification is often seen as the ‘only free lunch in investing’. This is because it allows investors to reduce risks without foregoing returns. So, what is financial diversification and how can you achieve it? Read on to find out. [B-01] What is Financial Diversification? Financial diversification is an investment strategy where you put your money in many assets to reduce risk. By holding a mix of investments, you can balance the losses of any one asset with the gains from another. For example, if you invest in stocks and bonds, a decline in the stock market can be balanced by the steadiness of bonds. So, you should invest in a range of industries and sectors to diversify your finances. For example, you can spread your assets across healthcare, technology, and retail companies.Choose investments that are not related to each other. This is the key to financial diversification. This means that when one investment goes down, the other will go up. Investing in a mix of assets can protect you from sharp market declines. It will also ensure that your portfolio has stable returns over time. Different Types of Financial Diversification There are many ways to follow financial diversification, but the most common ones are: Asset Class Diversification: This is when you spread your money across different types of investment options. This can be stocks, bonds, or cash. It helps protect you from losses. Geographic Diversification: This is when you invest in companies located in different parts of the world. This protects you from economic ups and downs in any one country or a few countries. Sector Diversification: This is when you invest in companies from different sectors of the economy. This helps protect you from slumps in any one industry.You can diversify your finances in these three ways. It will keep you from losing all your investments at once. The Benefits of Diversifying Your Finances? The two main reasons why you should consider this method of planning your portfolio are: Faster Growth RateOne of the main reasons to diversify your finances is to help you achieve your financial goals. By having a mix of investments, you can grow your wealth at a faster rate. This is more beneficial than putting your money into only one or two types of investments. For example, if you want to retire early, you can invest more in assets that provide regular income and less in investments that are aimed at growth. Flexible Money PlanningFinancial diversification can also provide you with greater flexibility. It allows you to better manage your money. With a diverse portfolio, you can adjust your investments as your needs and goals change over time. Higher ReturnsDiversifying your finances can also help increase returns. This is because when you have a diversified portfolio, you are more likely to have investments that perform well in different market conditions. This means that over time, you should see an overall increase in the value of your portfolio.Are you looking for ways to reduce risk? Maybe grow your wealth, and have greater freedom with your money? If so, diversifying your finances may be worth trying. How to Diversify Your Finances? As mentioned above, one way to diversify your finances is to invest in various types of assets. This can include stocks, bonds, mutual funds, and even real estate.You can also diversify your finances by finding more than one source of income. This could be through a job, an investment, or an alternative work opportunity. Having many sources of income will ensure that you always have money coming in, even if one source dries up.Lastly, you can also diversify by location. This means having investments and accounts in different countries. This can protect you from shifting currency strengths and political instability. The Risks of Not Diversifying Your Finances When it comes to financial diversification, the risks of not doing it far outweigh the benefits. Not diversifying your finances means putting all of your eggs in one basket. You could be left with nothing if that basket breaks. This is why this financial tactic is crucial. Spreading your money across different investments provides you with a safety net. It ensures that you always have some money coming in. There are many ways to diversify your finances. But the best way to do it will depend on your personal situation and needs. [B-02] Conclusion There you have it! You now know what financial diversification is. You also know some of the ways to do it. As you can see, there are a lot of benefits to diversifying your income sources. It can be done through assets or by location. Either way, spreading out your investments is beneficial in the long run. So, if you are looking to make your finances more stable and secure, then financial diversification is something you should plan for yourself. To learn more about such fiscal tactics and practices, read the blogs at Piramal Finance. You can also check out their other financial services and products, like personal loans and housing loans.

08-11-2023