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Business Loan

Things You Should Know About Business Loans in India

When you have to run a business, a crucial aspect you must focus on is the cash flow. No venture can go on if there is no money to pay for daily expenses and other long-term goals. But like enterprises, you may have to sell goods on credit and purchase materials with cash. This will affect your cash flow and delay crucial tasks like buying new assets or materials. If this is the case, you can opt for a business loan. Many banks and NBFCs provide MSME business loan offers to eligible enterprises. You may or may not have to offer security based on the amount and the loan tenure you prefer. As it is a business loan, you can only use it for work-related needs. Read on to learn about the key aspects of a business loan in India. [B-01] About MSME Business Loan in India When it comes to an MSME loan in India, you can apply with a bank or NBFC. But before you apply, it is vital to learn about the types of business loans you can take out in India. Here are the various business loan types that you may opt for: – Unsecured Loan: To get this loan, you do not need to give security to the bank or the NBFC. The maximum amount you can get here is between Rs. 10 lakh and Rs. 20 lakh. The tenure for this loan can last from 3 years to 5 years. You can use this money for any work-related tasks or expenses that you desire. Secured Loan: If you want to acquire any new assets for our venture, you may opt for a secured MSME loan. The asset you get with this loan must be placed as a security with the lender, who will create a charge over it. The interest rate for this loan type is lower than that for an unsecured loan. The repayment term can go up to 7 years for such loans. Loan against Property (LAP): If you own an idle property and need money, you need to apply for a LAP. The lender will pledge the property and create a charge against it. The maximum amount for such a business loan goes up to Rs. 5 crore with some lenders. The loan tenure can go up to 20 years, and the interest rate is also lower. This money can help with major expenses like buying machinery or land. Working Capital: If you need money to pay for daily expenses like salary, wages, freight, etc., then a working capital loan is what you need. This short-term loan can help you take care of expenses until you get money from your debtors. The tenure for such a business loan is around 3–5 years, and the maximum amount can go up to Rs. 10 lakhs with banks and NBFCs. Debt Consolidation: If you have many high-interest loans in your business and are looking to reduce your burden, this is the right MSME loan for you. Herein, your new lender will pay the debts of all other lenders, and you will have only one loan to take care of. The maximum amount and tenure will depend on the lender you choose. Professional Loan: If you are a doctor, engineer, CA, or any other professional and want to start your own office, you can opt for this loan. You must have a license and enough experience in your field to get this loan. The money here can only be used for your business-related tasks. Eligibility for a Business Loan If you want to apply for a business loan, you must meet the rules given by the bank or NBFC. While the particulars might vary across lenders, some key aspects that you must consider before you apply for an MSME loan are: Credit score: You must have a credit score of more than 680 to apply for a business loan. The lenders would also need credit scores from other partners and directors. Some lenders can also accept credit scores of 650 or higher for an MSME loan. Business Age: Your business must be more than three years old to be eligible for a business loan. This is vital for the lender to ascertain if your business has a track record that can help you know more about your profitability. Applicant Age: Every applicant must be over 23 years old at the time they apply for a loan. The maximum age that a lender will accept is 65 years old. Profitability: Many lenders will ask for your financial history. This will help the lender see if your business is making a profit and is in a position to pay the EMIs on time. Your business must have had a profit record for the last two years. Documents: You will need to give the lender the papers to process an MSME loan. This will include trading accounts, P&L accounts, the balance sheet, the cash flow statement, IT returns, and any other details that the lender may need to assess your application. Loan History: If you have previously taken any loans, then the lender may ask you for the loan statement. This will help the lender know if you paid the EMIs on time or if there were any defaults. [B-02] You will need a business loan at some point in time to keep your growth plans on track. It would be best if you opted for a reputed lender with a transparent approach. Piramal Finance is a leading NBFC in India that offers various business loans with great terms. You can get in touch with them for your business loan needs. To know more about using an MSME loan, you can also read their blogs and articles that offer in-depth facts about such loans.
08-11-2023
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Education

Things You Need to Know About PAN Card Fraud

The PAN card is unique to every person in India. Everyone can get this document, regardless of tax status. But in recent times, fraud using PAN cards has been on the rise. Several cases exist where individuals have lost a lot of money. These hackers misuse the details on the PAN card. This leads to financial loss. [B-01] How to Know if Someone Has Your PAN Card Details? If you think someone may have your PAN card details, here is how you can check. Have a look at your credit score. Here you will know all loans taken under your name. Below, we will list the steps you need to take to check your credit report online. This will let you know if there has been a PAN card scam. Step 1: Visit a reliable credit bureau. Step 2: Look for the ‘Check Cibil Score’ option. Step 3: You will have to enter some details. They will include your name, email ID, date of birth, mobile number, and PAN card. Once you enter the correct details, you will be able to check your CIBIL score. Also, you will be able to see if there is any fraud. How to Report a PAN Card Scam? If you find any changes in your credit score, it means someone used your details. You should report any PAN misuse as soon as possible. This section will discuss how you can report a pan can fraud. Step 1: Start by going to the official website of TIN NSDL. On the homepage, you will find the customer care section. Choose “Customer care”. Step 2: On clicking this option, you will get a drop-down menu. Step 3: Look for the “Complaints and Questions” option. Select that. Step 4: A complaint form will open. Make sure to enter all details correctly. Provide the correct data to ensure someone looks at your matter. Step 5: The final step is to enter a captcha code. Enter it and proceed by clicking “Submit”. Is There a Way to Avoid Pan Card Fraud? Yes, there are many ways you can avoid pan card scams. Below, we will list some methods to keep you safe from these scams. We hope this helps you stay safe from such frauds. Do not enter your PAN card details everywhere. First, you should verify the authenticity of the website. Many fake websites are online. These websites take information from the user and later misuse it. Don't give personal info on unknown websites, like credit card or loan comparison sites, not recognized by the government. Misusing and even selling your data is very easy. Only give PAN card copies to valid organizations and businesses. Know where and why you need to submit these. Do not give your full name or your date of birth on online websites. People generally use this information to track the PAN. Make sure you keep an eye on your credit score regularly. Do not save your PAN card details on your phone. You can compromise on confidential information if you lose your phone. What are the Types of PAN Card Fraud? Giving out your PAN card number is risky. People can misuse the information and take loans in your name. Here are some ways that these hackers can use your details. 1. Rental hotel rooms Scammers usually use fake or stolen PAN card details while renting hotel rooms. They may even do this when renting vehicles. If anything wrong happens in the hotel room, the police will first check the IDs. Thus, this is a case of stolen identity. 2. Buy jewellery If you buy gold for more than a certain amount, you must provide your PAN card information. Scammers can use stolen PAN cards for this purpose. In case of any PAN card misuse, the IT department may call you for interrogation. 3. Take loans or apply for credit cards If a scammer steals your PAN card details, they can use them to take out new loans. Also, they can use the information to apply for credit cards. This can lead to various financial frauds. And the blame will rest on you since it has your PAN card information. [B-02] The Bottom Line PAN card frauds are more common than you can imagine. There are many cases where people have reported misuse of PAN card details. These frauds will only keep rising. But the only way through this is to be safe. Go online and check if someone is misusing your information. Avoid giving your PAN card details to strangers or fake websites. Use this information only when it is essential.
08-11-2023
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Gold Loan

Things You Should Consider Before Applying for a Gold Loan

Gold has been regarded as a good option to invest money in for many decades. In India, many people prefer gold over any other asset, as it is easy to sell in times of need, and its value grows over time. In times of need, people used to sell their gold to raise funds. But in the last few years, getting money for your gold has become very easy. On top of that, there is no need to sell your gold as you can take a gold loan instead. Many banks and NBFCs now provide their customers with the best gold loan offers. If you have gold in the form of coins, jewelry, or bullion, you can apply for a gold loan and get the money in a few minutes. Like any other loan, you must be careful while taking a gold loan; if you cannot repay the EMIs on time, the lender can forfeit it. Read on to learn more about getting a gold loan and what points you must consider before you apply. [B-01] What is a Gold Loan? A gold loan is a secured loan wherein the lender will offer you a certain percentage of the value of the gold in the form of a gold loan. The remaining percentage will be a security for the lender to recover money if you cannot repay the loan. The gold will be put in a sealed bag and will remain with the lender till you repay the loan. As it is a secured loan, the interest rate on a gold loan is lower than on a personal loan. The loan tenure, in this case, can go up to 60 months. When it comes to repaying the loan, there are two options. You can opt to pay the EMIs as per the loan terms, or you can only pay the interest during the loan tenure and then make a lump sum payment at the end of the term. Most lenders do not levy any foreclosure charges if you close the gold loan before the term is complete. The loan process only takes a few minutes to complete. The lender will call a valuer to assess the value of the gold and then offer you a certain amount as a loan. If you agree, you must sign the loan agreement and provide your bank account information. The amount will be sent to your account in a few minutes. You can use this gold loan for any needs that you may have. Things to Consider Before Applying for a Gold Loan To make the most of this facility, you must select the best gold loan provider. This will help ensure you get the best deal on your gold loan without affecting your finances. Here are some key aspects you must take care of when you decide to apply for a gold loan: The Right Amount: You must note that the amount you apply for as a gold loan should be enough to cover your needs. If you apply for a higher loan amount, you will need to give that much gold as a security. Also, your EMIs will increase along with the loan amount. This can put some stress on your finances. Most lenders offer between 70% and 80% of the gold’s value as a loan. So, make sure you apply for the right amount as a gold loan; otherwise, it can be an issue that can also put your gold at risk. Best Gold Loan Provider: Some banks and NBFCs claim to offer the best gold loan. But don’t take their word for it. Not every loan offer is good for you, and you must opt for a loan that can meet all your needs. Hence, it would be best to research online to check the various loan offers available. From these offers, you can compare the terms and rules of the lenders and then select the best gold loan for your needs. Interest Rate: A gold loan is a secured loan, so the interest rate is lower than that on personal loans. However, it is still a cost you will have to bear for the entire term of the loan. So, make sure you select a lender who offers the best gold loan interest rate. This will help lower your EMIs and reduce the loan’s overall cost. Charges: Many lenders claim to offer ‘nil charges’ on gold loans, but that might not be the case. You must check the loan terms and rules carefully. Check for all the charges the lender will charge in processing fees. Also, it would be best if you asked for no charges for prepaying the loan. This ensures that if you have extra funds, you can repay the gold loan before the end of the term and save money on interest. Customer Support: Good customer support is the hallmark of the best personal loan. You must ensure that the chosen lender is known for its customer-friendly approach. The lender must also offer the option to make payments online and allow you to access your account details online. This will save you the hassle of visiting the lender’s office whenever you need information on your gold loan. [B-02] Conclusion A gold loan is a good option when you urgently need money and do not want to pay a very high-interest rate. However, it is still a loan, and you must therefore opt for the best gold loan to have a hassle-free time. If you want to know more about gold loans or other loans that you can avail of, check out the latest blogs and articles from Piramal Finance.
08-11-2023
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Personal Loan

This Is How You Can Get an Instant Personal Loan Online Without Documents

Whether it’s something from the home appliances list or something on your bucket list, you’ll need money to pay for it. There might be times when you are short on funds but need to make a payment right away. In such situations, getting an instant personal loan is helpful. Many banks and NBFCs offer this loan to their customers who meet the criteria. You can get an instant personal online in a few minutes. The amount will be instantly credited to your account. You don’t need to provide a lot of paperwork to process an instant personal loan. The bank or NBFC requires only some basic information. You are free to use this money as and when you like. But how can you get an instant personal loan online without documents? Read on to learn more. [B-01] Eligibility for an Instant Personal Loan Like any other personal loan, you do not need to offer security to get an instant personal loan. The tenure for such loans ranges from 24 months to 60 months, based on the lender. The interest rates start as low as 13%, depending on the amount of the loan and the lender. An instant personal loan is usually capped at Rs. 5 lakh. You can apply online and provide essential documents to process this loan. There is no need to offer photocopies of the documents. Since an instant personal loan is processed quickly, the eligibility criteria are a bit strict. The key aspects of instant personal loans are: Credit Score: Your credit score must be 750+ to get an instant personal loan without documentation. Some lenders may accept a 700+ CIBIL score if your salary and bank balance are high. If you are new to credit and do not have a credit score, it will be hard to get an instant personal loan online. Experience: You need work experience of at least one year to get this loan. Out of this, the last six months must be with the same company. It would be ideal if you could provide salary slips or have the company open a salary account for the same. Salary: Some lenders need you to have a monthly salary of more than Rs. 15,000, while others want a salary of Rs. 25,000 per month. Based on the lender, you will need to meet this criterion. Age: You must not be less than 23 years or more than 65 years of age, to get an instant personal loan. Some lenders may accept a lower or higher age limit. Documents: You do not need to offer any physical copies of your documents. You must, however, have scanned copies of the same. Nationality: You must be an Indian national to get this loan and have a valid Aadhaar card and PAN number. How You Can Get Instant Personal Loan Online If you want to get an instant personal loan online without submitting documents, there are two options that you can explore: Pre-approved Loans A bank or NBFC gives this instant personal loan to a customer with an account with the lender. When you have paid your EMIs on time or have a high balance in your account, the lenders offer you a certain amount as an instant personal loan. You do not need to offer papers to process this loan, as the lender already has all the details. The steps you must follow to get this loan in a few minutes online are: Access your bank’s or NBFC’s website via the website or mobile app. Click on the log-in option and enter the details to access your account. Look for the option titled “Offers.” Click on this link. You will be able to review all pre-approved personal loan offers that are available to you. Select the option that meets your needs. You will then need to verify the loan terms. Read them and click on the “I Agree” option. You might need to re-enter your account details to verify the request. Enter the OTP sent to your account and click on “Submit”. The loan amount will be sent to your bank account in a few minutes, and you can use it as you like. The EMIs will auto-debit from your bank account every month on the given date. Non-pre-approved Loans If there is no pre-approved offer, the process will be slightly longer. You need to select a lender whose criteria for an instant personal loan you can easily meet. Usually, fintech companies and NBFCs have easier rules for such loans. Here are the steps you must follow: Log on to the lender’s website. You might be asked to create an account before applying for this loan. You will need to provide details like your income, age, and salary. You should also upload scanned copies of these documents. You will need to verify your bank account details. If not, then look for the option “instant personal loan.” You must fill out a form and upload the documents as needed. The lender will process your application quickly. It will then show the best loan offers available. You can choose an amount equal to or lower than this offer as your instant personal loan. Click on “Submit.” The lender may ask you to verify various documents. The money will then be credited to your bank account. The EMIs will auto-debit from your bank account every month on a specific date. [B-02] The Bottom Line If you want the best instant personal loan offers for your home appliances list, there are various options available. For more such articles, check out the Piramal Finance website. Here, you can find more information on loans and understand your finances better.
08-11-2023
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Other

This Diwali, Don’t Burn Your Money, Pledge to Invest

The festival of Diwali is also considered auspicious, in addition to being one of India’s largest festivals. It is celebrated to commemorate the return of King Rama. After 14 years in exile, Rama returned to Ayodhya after winning the battle against Ravana, a demon king who planned his destruction. The mythology associated with Diwali varies depending on the different ways of celebrating in various regions and cultures. Even so, they convey a sense of joy and celebration, the importance of self-inquiry and self-improvement, and the desire to be highly conscious and aware of God. As Diwali triumphs over darkness, hope triumphs over despair, good triumphs over evil; and knowledge triumphs over ignorance. This article provides a few investment tips to help you make the right investment decisions. These investment tips will help you improve your financial outlook. Therefore, we encourage you to read this article until the end to get the most out of it. [B-01] Things to consider before making an investment The key to achieving your financial goals and dreams is to allocate your resources wisely. If you use the cash gift effectively, you can achieve your financial goals this Diwali. You can get multifold returns if you invest wisely. When you get a return above inflation, it is called an “accurate rate of return.” You can maximize returns for an extended period by effectively using your wealth. If you’re investing, we recommend considering these investment tips. Identify your risk profile As risk tolerance and appetite differ from individual to individual, it can be dangerous to blindly copy another’s investment style or portfolio without understanding your own risk profile. When choosing investments, you should look inside yourself and then make a prudent judgment. For example, suppose volatility makes you nervous. In that case, you should avoid risky investments like stocks and equity mutual funds. It’d be better if you invested in fixed-income instruments instead, like fixed deposits, PPFs, NSCs, etc. All asset classes have risk characteristics, like equity, debt, gold, real estate, or investment avenues. Before you invest your hard-earned money, you need to recognize the risk level and decide if it’s right for you. High-risk investments can yield high returns, but if you prefer to avoid taking on high risks, you can opt for a safer option. Identify your investment objectives To achieve your investment goals, you must decide whether you are trying to grow wealth by taking high risks, preserve capital by taking low risks, or generate income from investments. Setting an investment objective is a wise idea. It simply means figuring out why you want to invest. The fundamental attributes of all investment avenues are that they either grow, preserve, or generate income. Therefore, when choosing an investment option, it is vital to identify these fundamental attributes and recognize them accordingly. Make sure every investment matches your investment objectives. In that case, you can design an investment portfolio with suitable instruments to reach your financial goals. Taking into consideration your age At the beginning of your life, you can handle a higher level of risk and invest in riskier assets than you could later on. As you get older, your ability to manage risk might decline. Henceforth, you need to know sound investing tips for better financial goals. Investment horizon awareness As an investor, it is wise to consider the timeframe for which you can invest your hard-earned money or when you want to receive the principal amount and the return on your investment. The more risk you are willing to take in the long run, the more money you will be able to earn. Therefore, you must make a crucial decision to set your desired timeline. Analyzing investment costs Every investment comes with a cost, such as fees, expense ratio, Demat charges, locker rent, etc. You need to consider these costs while investing your assets to avoid your gains getting eroded, as the costs are linked to the investment. Quick bucks lure many people, but they need to know the hidden charges; you must ask for all the charges from your broker while making the final payment. Therefore, you need to have an adequate understanding of its costs. Understanding the tax implications Since your objective is also to earn tax-efficient returns, you should ensure that your portfolio’s post-tax returns are worthwhile. If you plan carefully, you may be able to avoid paying higher taxes on your returns, resulting in a loss on tax return day. Investment is not just about collecting investment tips. It is also a matter of disciplined investing. As long as you follow a disciplined approach based on a systematic process and exercise prudence, it would be advisable not to worry about when the market performs well. You will be able to make reasonable returns on your investments. So, the most significant thing to remember during this Diwali is that you should be open when choosing your investment instrument. You should not invest your entire Diwali corpus in one asset class, such as gold, fixed deposits, or stocks. It would be most beneficial if you chose a strategy for your investments that would be the most effective. The most effective way to achieve your short and long-term financial goals is to diversify your investment portfolio according to your risk appetite and the investment program in mind. [B-02] Conclusion The investment tips we have shared with you may have motivated you to make a decision that will enable you to make a wise investment. These investment tips will help you to ensure that your family is well off financially and that you can provide them with the quality of life that they deserve. Piramal Finance is a well-known name that can provide a beneficial launchpad to start your investment journey. They can also provide you with investment tips that can assist you in reaching lofty heights in the investment world. So, don’t delay; get started now, and don’t wait. Investing is a game of chance where the one who jumps in first catches the worm (the bigger one).
08-11-2023
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Home Loan

This is How You Can Manage Your Home Loan in Few Simple Steps

A home loan comes with certain risks. The tenure for housing loans can go up to 30 years, and the loan amount is usually in lakhs or crores. As a result, you will be paying EMIs for a large part of your career. Hence, you should learn how to manage your home loan better. Read on to learn how to effectively manage your home loan. [B-01] Why do You Need to Manage Housing Loans? You might be concerned about how to manage your home loan EMIs. Sadly, it is not as simple as other loans. Housing loans are high-value loans with a long tenure. Aside from a home loan, you will also have to pay for other expenses. Some of these include home expenses, travel costs, and various other expenses. If you have your spouse as a loan co-applicant, it becomes even more crucial to be on top of your costs. You may have taken out a home loan for an amount that can stretch your finances. But why let the joy of being a homeowner be affected by such matters? Let us look at how you can manage your home loan expenses better. How to Manage Your Home Loan? Managing housing loans is a major task. Hence, you should know how to manage your home loan. This helps you have better control over your financial future. Here are a few steps that you can follow: Opt for a low amount: You do not need to take a higher loan just because you are eligible. Borrow only what is needed for the purchase. With a high loan value, you need to make a higher down payment. However, if you can afford that, you will benefit from low EMIs. You will also be able to repay the loan more quickly. Go for a higher EMI: If you have to take up a high home loan amount for some reason, then it will be ideal if you go for a higher EMI. You must adjust your finances based on future growth and then opt for a high EMI that you can afford. But make sure you also need to take care of other costs, so think wisely before you decide. When you go for a higher EMI, you can repay the loan early and ensure the interest cost is also less. Pay EMIs on time: You need to pay your EMIs on time. Otherwise, the lender will levy late fees or penalties. It will be ideal if you opt for the auto-debit option so that there is no oversight on your part. Ensure your account has a sufficient balance around three days before the EMI payment due date. Any delay in paying the EMIs or bounced EMIs can affect your credit score. Pay one extra EMI: People want to repay their loans as soon as possible. If you want the same for your home loan, make it a point to pay an extra EMI every year. This would not hurt your finances but help you repay the loan before maturity. Also, your interest costs will be reduced when you repay the loan earlier than the due date. Start a mutual fund: Mutual funds are ideal for meeting crucial life goals, and buying a home is one of them. You can start a mutual fund investment to help you pay your home loan EMIs on time. This will help you create a sizeable corpus over time that will help you repay the loan amount. Align your portfolio: If you have a home loan EMI to pay, you should align your investment portfolio to meet your commitment. This implies liquidating investments that do not offer a return higher than the home loan interest rate. It will help you lower the loan amount, reduce your EMIs, and save on interest costs. On the other hand, if the investment is giving you a higher return than the home loan interest rate, you may continue with it. Reduce costs and increase income: When you have a home loan EMI, make sure to reduce other costs. At the same time, find ways to boost your income. In the present, when working from home has become the norm, you can take on some freelance projects. Your spouse may also take up such tasks to boost the family’s income. It will help you repay your housing loans faster. Use windfalls: If you receive any windfall income, do not spend it on leisurely activities. Try and use your funds to make home loan payments. It ensures that the loan is paid off on time, lowering your interest payments. [B-02] Wrapping Up Housing loans are not easy to manage. With the right financial planning, however, you can handle them wisely. Try to choose a lender that offers a low home loan interest rate. To learn more about how you can reduce your home loan EMIs, go to the Piramal Finance website. Here, you can read more such finance-related blogs and articles. It will help you understand the different types of home loan options, affordable home loan interest rate options, and ways to manage your housing loans.
08-11-2023
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Know More

Tips for Loan Against Property

The term, Loan Against Property, is used by lenders to describe the process that enables homeowners or business owners to take out a loan on their home or property. It is done to meet the financial needs of people who may lack the necessary funds but can benefit from owning a property. This process allows lenders with extensive experience and knowledge to help borrowers in need. A loan against property is an option for those who own a property and want to take out money against it. There are various benefits to this process. Beginners get approval for the loan quickly because most people don’t show up with enough collateral or equity in their property and can’t afford the high processing fees that other loans charge. Secondly, the interest rates on this type of bank financing are cheaper than other types, which means your monthly payments will be lower over time with this type of arrangement. For plans like an installment payment plan or a personal loan, the monthly cost could be higher. [B-01] Here are Some Tips and Advice for Loans Against Property 1. Obtain a Reliable Property Appraisal The lender in this situation will want to see that your property has a certain level of market value attached to it. Therefore, you should ensure that you get a good and reliable valuation on your home or property. That way, you will be able to show the lender that the house is worth enough money that they can secure their investment if they choose to loan out any amount against it. If everything checks out, you should have no trouble getting approved for a “loan against property” agreement. 2. Evaluate Your Risks You should know the risks involved with a loan against property transactions. Then you can make an informed choice and avoid any misunderstandings or other problems down the line. You need to consider your situation and how you would be able to handle certain circumstances if they arose. With a loan against property, you also need to consider the risks of not being able to pay it back. A lender will retain their right to call on the property when you don’t make a payment and have legal rights to collect interest on the outstanding principal amount. But if you do everything you’re supposed to, many lenders are happy to give you money based on how much cash you can pay back from your property. 3. Compare Interest Rates Between Lenders Comparing interest rates is a simple task. Lenders usually advertise their rates online or over the telephone. You can apply for a loan against property and get an idea of the interest rates from different sources before applying for one. Go through the loan details if you are interested in finding the best deal, but you need to get all of your ducks in a row before applying. It is essential to be aware of the various levels of lenders and their interest rates that differ from one another. Therefore, potential borrowers should research the situation of the lender before approaching them for help. It will also benefit them greatly if they can accumulate information from other people who have gone through the process before them so that they will have more accurate expectations regarding what it takes to secure a loan against property. 4. Maintain a Good Credit Score It will help you even when you are taking a loan against property. The lender may insist on checking your credit reports and scores, as this will be one of the factors that they consider before approving your loan. They may ask for a credit report to be run several times during the duration of your loan to ensure that you can meet your obligations. Having a good credit score is essential for many reasons. You can use it as collateral to borrow money, ensure that you get better interest rates on loans in general, or have an easier time with other kinds of financial arrangements such as mortgages, credit cards, and more. 5. Choose a Short Tenure Although it’s possible to get a loan against property for tenures as long as 25 years, you may want to try to make the arrangement more short-term to get the best interest rates. When you work out the numbers, it is often less expensive for a lender to make interest payments for a shorter period than a longer period. If this sounds like what you are trying to do, then you will want to choose lenders who can help you with that in your search for ways to secure money. They can also help you find good strategies on how to pay it back and manage your money better during the time that your loan exists. 6. Have Good Credit Scores This helps in getting approved for loans against property without any problems, and it reduces the risk of them having to sell your house or property if it is ever necessary later on. When you have good credit scores, you are going to be in a better position to make payments on any loans that may be taken out under a particular arrangement. [B-02] Conclusion Getting a loan against property is not very difficult. When you are starting on the path to getting a loan against property, you must know what you’re doing. The better educated you are on this topic, the easier (and more comfortable) it will be for you to secure a deal in your favor and make the process as smooth and simple as possible. There are various ways to go about getting this kind of loan, but the best way is likely to go online and contact a few different lenders who can help you get started through their service. You can always consider consulting an institution like Piramal Finance. They can help you with a mortgage loan and can also guide you through the process.
08-11-2023
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Other

All You Need To Know About Working Capital Finance and How it Works

Many business owners believe that financing from banks and other lenders will always be the best option to fund business growth, but that is not always the case. Working capital finance can help your company get the money it needs to meet immediate cash flow challenges. It also allows you to maintain your credit rating and keep control of your assets and debt repayment strategies. Learn more about working capital finance and whether or not it is right for you by reading this article on everything you need to know about working capital finance. [B-01] Defining working capital finance Working capital is the money a company has available to cover its expenses between periods of sales. It can be used for day-to-day operations, long-term investments, or additional working capital loans. Working capital loan interest rate is one of the most important factors in determining how much you will pay in interest on your debt. A low working capital loan interest rate will result in a lower monthly payment, while a high one will lead to higher monthly payments and potentially a higher total cost of borrowing. The primary factor that affects working capital loan interest rates is the length of time between when the funds are borrowed and when they are repaid. The longer it takes for repayment, the higher the rate. Types of working capital Working capital is the amount of money you have available at a given time. There are four types of working capital: Cash in hand: Cash in hand is the most liquid form of working capital finance. It can be put to use immediately. Accounts receivable: Accounts receivable show how much customers owe a company for products or services that have been delivered but not yet paid for. Inventory: Inventory stands for the products a company has on hand that are ready to be sold to its customers. Fixed Assets: The final type of working capital finance is fixed assets. This refers to items like property and equipment that the company owns and may utilise over time. How does working capital work? Working capital is a type of business loan. Here, the finance company allows you to borrow up to 75% of what your inventory, receivables, and other assets are worth. Working capital finance loans have an interest rate that varies depending on the financial strength of your company and what collateral you have for the loan. They can be anywhere from 2% up to 7%. The borrower is required to repay the amount borrowed plus interest within 90 days, or it may face liquidation to pay back the debt. As long as the borrower has some sort of collateral to offer (real estate, a vehicle, etc.), they will receive a lower interest rate than someone who doesn’t. How to calculate working capital The total value of all cash required plus all accounts payable is divided by 365 days in a year to calculate working capital finance. Working capital formula: Current assets / Current liabilities = Working capital ratio If you take out a working capital loan with an interest rate of 12% per year and make monthly payments, it would cost $200 each month to repay the balance at the end of one year. A lower working capital loan interest rate could save you thousands of dollars over the life of your business. This depends on how much working capital you need and how long it takes to get repaid. The importance of working capital management Working capital is the difference between a company’s current assets and liabilities. The level of working capital needed varies based on the type of business. Companies need to manage their working capital levels because this has an impact on liquidity and solvency. This in turn can have a big effect on the company’s creditworthiness. Working capital finance is determined by several factors, including credit history, industry type, and the size of the company. There are some reasons why your business might require additional working capital: To fund new projects and equipment: The working capital loan interest rate is usually lower than the company’s credit card debt. So it can be a good way to help fund projects and equipment that will increase your revenue in the future. As a short-term solution for cash flow issues: Working capital loans are usually paid back in one year or less, so they’re an ideal short-term solution for companies with cash flow issues. To repay higher-interest debts: If you have more expensive debts such as a car loan, student loans, or credit cards, working capital loans can often save you money in the long run by getting rid of these debts. For inventory financing: If your inventory exceeds what you need on hand to fulfil orders, then you may want to look into inventory financing options. This provides additional liquidity for managing inventory levels during busy periods. The working capital loan interest rate is typically lower than the company’s credit card debt, so it can be a good way to help fund projects and equipment. This will increase your revenue in the future. Working capital finance loans are usually paid back in one year or less, which makes them an ideal short-term solution for companies with cash flow issues. [B-02] The bottom line Working capital is the fuel that powers a company. It is an amount of money that can be used for operations or investments. It helps keep the company operating and supplies it with working capital. Working capital loan interest rates are typically set at a fixed rate so that you know how much you will pay over time. Check out more finance-related articles at Piramal Finance on topics that interest you.
08-11-2023
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Schemes

What kinds of returns can I expect from NPS?

In terms of profit potential, the National Pension Scheme (NPS) is up there with the safest investment vehicles. It has a medium risk level but lower returns than some other investment options. There are eight pension fund managers to choose from in the NPS, which is a significant perk. To participate in the tax saving NPS, you must choose how much of your investment money to put into each asset class. The four asset classes are equity, corporate bonds, government bonds, and alternate assets. [B-01] What exactly is NPS, and what purpose does it solve? The National Pension Scheme is an investment tool governed by the Pension Fund Regulatory and Development Authority of India that promises high rates of return. The programme was established to provide subscribers with monetary support once they reach retirement age. A subscriber can invest in equities, corporate bonds, government bonds, and alternate assets. Furthermore, the fund managers who allocate your assets will directly impact your tax-saving NPS returns. As of right now, India has eight different pension fund managers. This article presents data gathered from various sources to provide a comprehensive picture of the NPS return rate. How can an organisation benefit from a high Net Promoter Score? The rate of return on an NPS tax-saving investment is tied to the success of the underlying investment vehicle. The average NPS return can be estimated by looking at the scheme’s performance in the market. To maximise the size of one’s retirement nest egg, NPS subscribers should start saving as early as possible. The rate of return on an NPS account is the interest earned on the contributions made to the account. As of 2021, the interest rates range from 9% to 12%, making this investment a lucrative choice for those seeking financial stability. Subscribers’ returns on their investments are tied to the type of asset and the size of their initial investment. Because tax-saving NPS funds are invested in debt and equity, the expected returns on those investments fluctuate with market conditions. Below, you’ll find information on the NPS return rates in 2021 and previous years. Investors have achieved high returns across all asset classes and tiers. What is the recent return rate of the tax-saving NPS scheme? By reading on, you will learn about the returns earned by the NPS up to July 19, 2019, and get a feel for what the NPS has returned over the past decade. With this information, you’ll be able to gauge 2020 NPS response rates with greater precision. As of 2019-07-19, the average annual return on NPS Tier 1 (equity) was 3.6%. In comparison, the average annual return on NPS Tier 1 (equity) over the past three years was 9.5%, and the average annual return over the past five years was 8.74%. Tier 1 (corporate bonds) tax saving NPS average returns have been 13.59% after one year, 9.1% after three, 10.34% after five, and 10.31% since inception. The average annual return on Tier 1 (government bonds) in a defined contribution retirement plan was 20.28%, and the average annual return on Tier 1 was 10.29% after three years, 11.56% after five years, and 10.15% after inception. Tier 1 (alternative assets) had an average NPS return of 9.89% over the past year and 7.67% every year since the fund was started. How to open an NPS account for the first time? Today, opening a tax-saving NPS account is a quick and easy process that can be completed in under thirty minutes from the convenience of your own home. A one-time password (OTP) will be used to verify the information you provide, including your Permanent Account Number (PAN), Aadhaar number, and mobile phone number. Once your account is cross-checked and authenticated, you will get a Permanent Retirement Account Number (PRAN), which you can use as your NPS login procedure. How to track down your NPS returns? Due to the market-linked nature of NPS returns, which are comparable to those of mutual funds, no interest is paid on NPS investments. From what has been shown, if you invest in an NPS for a long enough time, you can expect a high rate of return. With the help of an NPS calculator, you can figure out the expected rate of return on a tax-saving NPS investment. This tool has become popular because it can give accurate estimates of future earnings. You can easily estimate how much money you’ll get out of your NPS corpus when you retire (typically after the age of 60) with the help of the NPS calculator. The NPS calculator can also help you determine how much regular savings you’ll need to achieve your desired rate of return. When the above information is put into the NPS calculator, the following will happen: The sum of money in your National Pension System (NPS) Account. The amount of money that a subscriber can expect to have saved by the time they retire, after accounting for interest. The entire sum that will be bought as annuities at maturity Total cash payout upon maturity Based on the annuity purchase, an estimate is also made of the pension that the subscriber will get each month. Why should you invest in NPS? In recent years, tax-saving NPS has become the go-to investment vehicle for subscribers looking to amass a nest egg for old age reliably. Although the NPS allows for diversification across various asset classes, there is a limit on the proportion of the fund allocated to equity shares. These are more volatile than other investment options and do not guarantee a return on investment. Investors’ faith in the tax-saving NPS scheme has been bolstered by the fact that returns have averaged 8–10% annually over the past decade. [B-02] Wrapping it up! Investing under the NPS scheme is a lucrative option as it is a long-term investment scheme and provides high interest rates. It is an ideal investment option if you plan for early retirement. Tax saving NPS scheme gives you dual tax benefits with an additional INR 50, 000 tax concession on your investments. To learn more about the NPS scheme, the benefits, and the returns, you can visit Piramal Finance.
08-11-2023
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