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Personal Loan

No-Collateral Personal Loan

A personal loan is a loan taken from a bank to satisfy an unanticipated financial need, such as establishing a business, purchasing a house, paying for education, or taking an extended trip overseas. When you apply for collateral free loans, the bank won’t ask you what you plan to use the money for; they consider that irrelevant information. On the other hand, a personal loan does not require the pledge of any tangible item (such as a home, stock, or gold) as security, as other types of loans do, such as a secured loan or an unsecured loan. [B-01] No collateral loan eligibility Your credit score and history will be looked at to get a personal loan without putting up collateral. You can be a devoted bank customer. The likelihood of getting a personal loan with good terms increases if you have a history of making payments on time and a high credit score. In certain cases, the interest rate on loans from any bank might be as high as 40 lakh rupees. Key points to know about a no-collateral loan Due to the unsecured nature of personal or collateral-free loans, financial institutions must evaluate your employment history, income, and cash flow to ascertain your ability to repay the loan. There is little documentation required for personal loans at any bank. Explore Piramal Housing online to find out more about collateral-free loans. Personal loans for pre-approved bank customers may be processed in as little as 10 seconds. Someone else can apply for a personal loan in less than 4 hours. Traditional personal loans do not need collateral. They are collateral-free loans. You should be able to negotiate advantageous terms if you have a long-standing relationship with the bank, proof of steady income, and a good credit history. You are the only one who can change things. It might be used for everything from commercial purposes to covering medical bills to financing a dream trip abroad. The easiest approach to receiving a personal loan without collateral Small personal loans are the most popular choice among borrowers. As they are collateral-free loans, you may use them without worrying about losing your possessions. This means you won’t have to give up anything—not even your home—in exchange for a loan. In addition, the purpose of the loan is irrelevant to the lending institution. It is an unlimited credit facility that a borrower may employ to fulfill various purposes, such as paying for a wedding, covering medical bills, and many other things. You must still meet a few standards to be accepted, though. How to obtain approval for a small personal loan? Here’s how to enhance your probability of approval and accomplish it at an affordable interest rate: Boost your CIBIL rating With collateral-free loans, the lender needs more assurance that they will get their EMI payments on time. Your CIBIL score (credit report rating) is significant here. This three-digit value, which varies from 300 to 900 points, is a gauge of your creditworthiness and capacity to make payments. Your chances of getting accepted for a personal loan with low interest rates drastically rise if you have an excellent credit score. That means you can get low-interest personal loans even if your CIBIL score is low. Even so, the approval might come with a slightly higher interest rate. To avoid this, you may rapidly boost your CIBIL score by making on-time payments on your credit card bills or ongoing loan EMIs. One application at a time Multiple would-be borrowers make the error of applying to many lenders at once to boost their chances of approval. Keeping this in mind, each time you seek a minor loan for personal use, the lender retrieves your CIBIL credit record. It is regarded as a difficult investigation. A few tough inquiries in a short period may decrease your CIBIL score and lessen your chances of getting approved. Therefore, carefully pick one lender and file your application with them, ideally based on their ROI and tenure. If your application is declined for any reason, you should wait at least six months before presenting it to a new lender. Pool all sources of money Be upfront and honest with the lender about your income sources to maximize your chances of acquiring a personal loan. This encompasses both your pay or company income and other kinds of income, like rental income, share and dividend income, or income from other assets. Securing personal loans at a low ROI helps establish income regularity. Stay calm if you lack a constant source of money. Just file a joint application for modest personal finance with a co-borrower who is a source of income. Piramal Finance If you pick Piramal Finance, you’ll find a reliable lender that offers modest collateral-free loans at reasonable interest rates, easy tenures, and speedy processing. Our website offers a personal loan EMI calculator you may use to estimate your probable EMI payments with us. After that, you may begin your loan application online with our smart interface and obtain a verdict in just a few minutes. [B-02] Conclusion Personal loans from Piramal Housing Finance are much like any unsecured loan because they don’t need any collateral to be given as security. To be eligible for one of these collateral-free loans, you do not need to provide any security or guarantee. The next issue is, “How can I apply for this loan?” You must complete the most basic criteria and provide only the most fundamental supporting documentation to be certified as quickly as possible. You may consult with an expert at a Piramal Financing House to learn more about collateral-free loans.

08-11-2023

Personal Loan

Benefits of Instant Personal Loan You Need to Know Today

An instant personal loan is a short-term loan generally taken for quick cash. It comes with comparatively high-interest rates if you compare it with secured loans like home loans, etc. Instant personal loans don’t need a lot of paperwork and are approved quickly without collateral. Taking an instant personal loan is convenient and less time-consuming if you compare it with other conventional bank loans. Instant personal loans are also known as “quick loans.” You can apply for an instant personal loan online from the comfort of your home or office. You don’t even have to fill out lengthy forms at the bank. But that is not all. There are numerous other advantages to getting an instant personal loan, which have been discussed here. [B-01] 5 Benefits of Instant Personal Loan You Should Know If you want to get a personal loan, you must try and apply for an instant personal loan first. These are the top 5 benefits of an instant personal loan you should know; No papers required When you apply for any other loan, you have to provide multiple documents to your lender. And once you provide these papers, only your loan proposal moves forward. However, applying for an instant personal loan is different. You don’t have to provide any such documents. Even if you have to submit some papers, it is 100% online. It, in turn, makes the whole process paperless. Also, if you are an old customer with pre-approved loan offers, you can apply without any papers. Collateral-free loan Instant personal loans are collateral-free. As a result of its zero-collateral nature, it is easier to get than any other consumer loan. The lender only checks the borrower’s income flows. It is to ensure that the borrower can repay the loan. An instant personal loan is more like an unsecured personal loan. Here, you don’t have to put up collateral to get a loan. However, it’s much easier to get an instant personal loan. You will not even have to submit any collateral or provide a guarantor. Instant disbursal to your account If you are in an urgent situation and need money urgently, applying for an instant personal loan is always beneficial. If you have a pre-approved loan offer, that’s even better. Then, the money will go directly into your account without any lengthy process. Even if you don’t have a pre-approval offer, you must submit some paperwork. You will receive the loan offer on the same day. Customizable loan tenures When you apply for an instant personal loan, you opt for a flexible loan tenure in most cases. It means you can choose a repayment term that suits your needs. This tenure is only subject to the lender’s full loan tenure. Affordable interest rate The expense of a loan depends on its base annual interest rate. In the case of instant loans, they generally have lower loan tenures. With a lower tenure, instant loans will have a much lower overall interest expense than conventional loans like personal loans, etc., thus making instant personal loans more affordable. However, an individual with a good credit score will be more likely to get a loan at an affordable interest rate. The general expense of an instant personal loan is very low. It is vital to note that if you are a first-time instant loan applicant, the interest rates will be higher than for experienced borrowers. This is because they have a better credit score. A good way to lower your interest is by making regular payments after getting a personal loan. It will allow you to build a healthy credit score, giving you access to lower interest on future loans. No questions asked If you take an instant personal loan, you can use the loan minus a precise use case. In most cases, you are not interviewed by the lender about your reasons for borrowing. An instant personal loan is one of the preferred methods of consolidating debt. Instant personal loans provide flexibility at a much more affordable rate compared to credit card loans. Things You Should Avoid While Taking a Personal Loan. These are the things to be kept in mind when applying and should never do about a personal loan; Unwise selection of repayment tenure This is one of the crucial factors that you should select with utmost care. The loan term the lender gives varies, generally up to 60 months. However, it would be best if you understood that longer payment terms would attract more interest on the loan payment. If you want to avoid spending money on interest, choose a reasonable repayment term. Borrowing more than you need: Because of your clean credit score and loan repayment history, lenders might offer you instant personal loans up to Rs. 50 lakh. However, as the borrower, you should decide on the loan amount that you need for its purpose. You should not apply for a larger sum simply because you can, but rather take what you need to meet your immediate needs. No reading the actual terms and conditions: You must read through the terms and rules of the instant personal loan before you agree to the documents. Being aware of these terms and conditions will help you if there are problems tomorrow. [B-02] Conclusion These were some of the most crucial benefits of taking an instant personal loan. You can borrow an instant personal loan for different purposes. This includes debt payments, emergency costs, and much more. These loans are repaid in EMIs over the loan’s tenure. Do you want to get an instant personal loan today? Piramal Finance is an NBFC that offers this type of loan with an affordable interest rate. Get started today by visiting Piramal Finance, and you can also read other offers related to instant personal loans.

08-11-2023

Personal Loan

All You Need to Know About Some Hidden Charges with Personal Loans

A personal loan is a great way to get the money you need to cover any last-minute expenses. Everyone knows that personal loans come with interest payable. However, there are many other hidden charges that you may have to pay when you apply for a loan. Not all lenders charge the same fees. Here are some hidden charges you may have to pay. [B-01] What are the types of hidden charges with personal loans? 1. Loan processing fees The lender will charge a small fee for handling the loan application. The fee covers the lender’s costs to manage and process the loan. The processing fees range from 0.5 to 2.5% of the loan principal. The exact rate may vary from one lender to another. 2. Verification fees The lender will verify your identity and determine whether you can repay the loan. For this, the lender hires an independent agency to investigate your creditworthiness. The independent agency will charge the lender a fee. The lender will, in turn, charge you a verification fee. Verification fees are between Rs. 250 and 750. 3. Default charges Your monthly payments to the bank will depend on the principal amount, interest rate, tenure, income, and other factors. You are liable to pay EMI before the due date every month. However, you will be charged default charges if you miss an EMI payment. The default charges are between 1 and 2% of the EMI amount. Therefore, you must select EMIs within your financial means. 4. Prepayment charges You can prepay a part of the principal amount or repay the total loan in one payment if you have the funds. In this case, the lender will not receive any interest on the borrowed funds. As a result, the lender charges a foreclosure fee of 2–4% of the loan amount. The prepayment fee can also depend on how far along you are in the repayment process. For example, if you have repaid half of the principal, the lender may charge you 1.5 or 2%. However, if you have paid only 10% or so of the loan, you may have to pay a higher fee. 5. Goods and Service Tax (GST) Lenders will conduct various services during loan processing. For example, they run credit checks, take feedback from previous lenders, and so forth. Hence, you need to pay taxes on these services. You will be charged 18% GST on the home loan. This is one of the hidden charges that people rarely consider when applying for loans. 6. Fees for extra statements Lenders will provide you with statements at regular intervals. For example, you may receive statements after every quarter. However, you can also request these documents from the lender. To get these statements, the lender will charge you Rs. 50–200. How do you avoid paying hidden charges on personal loans? You may have to pay six hidden charges with your loan application. Knowing about these charges is not enough. Hence, here are some ways to avoid hidden charges on a personal loan. 1. Examine the documents thoroughly. While taking a loan, ensure you understand the terms, conditions, and clauses. This step is necessary to find any hidden charges. All fees charged by the lender are given in the loan agreement. When checking the documents, check the personal loan interest rate, payback period, and repayment method. Cross-checking financial papers is a must-do. Before signing the loan contract, take the time to read all the information carefully. Accepting a personal loan without reviewing the agreement is a grave mistake. It can lead to financial strain once your EMIs begin. 2. Set up a repayment strategy. Decide on your repayment strategy before you apply for a loan. Before applying for a personal loan, use a personal loan calculator. It will help you determine the ideal repayment term and EMI based on your income. Also, always opt for automatic deductions of the EMIs from your account via auto-debit or ECS if it is an option. The amount is automatically deducted from your account and paid towards your loan. Therefore, you need not worry about missing an EMI date. Setting up automatic payments will help you avoid late fees. However, you should keep the required funds in the account; otherwise, the amount will not be deducted. This is a good strategy for people who do not remember to pay EMI. 3. Borrow money from a trustworthy financial institution. Borrowing money from a reputable and authentic lender is crucial. It will ensure you trust the lender when applying for a loan. Conduct thorough research on the lender before you apply for a loan. You can read online reviews and the experiences of other customers to understand how the lender works. You should also check the terms and conditions provided on the institution’s website to see whether you meet the criteria. It will help you understand if you qualify or if there’s a clause you do not agree with. You can then decide whether to apply for a loan with the institution or not. [B-02] Conclusion With a personal loan, the money is disbursed into your account in one lump sum. There are restrictions on how you can spend the loan amount. This makes personal loans one of the best financial options available. However, there are additional hidden charges that you need to pay. Banks and lending organizations may impose hidden charges on the loan amount. Hence, you must know about the fees you will incur. Read all documents carefully to understand which fees you will be charged and when. In urgent need of funds? Apply for a personal loan with Piramal Finance now and get attractive interest rates.

08-11-2023

Know More

Floating Interest Rate: Benefits and Working

One important factor to consider when applying for a loan is its interest rate. The interest rate plays a crucial role in every loan. Interest is the portion of the money that you will have to pay against the loan. It is calculated as the percentage sum of the loan. In summary, a floating interest rate is an interest rate that changes as per market indicators. It is also known as a variable interest rate. Meanwhile, a fixed interest rate stays stable throughout the loan period. [B-01] What is a Floating Interest Rate? A floating interest rate governs all debt instruments, like loans or mortgages, that do not keep a static interest rate throughout the loan tenure. A floating interest rate varies sometimes and moves up and down based on the market situation. Floating interest rates change according to market conditions. Depending on the loan, there are various types of floating interest rates. It’s identical to a fixed interest rate if the rate doesn’t change much during a given period. However, over the long term, floating interest rates tend to vary significantly, which makes them different from fixed interest rates. A floating interest rate is also called a variable or adjustable interest rate. It can alter throughout the debt obligation. The Alternate Reference Rate, also known as ARR, is a new reference rate released by the RBI in 2021 that is the basis for a floating interest rate. How Does a Floating Interest Rate Work? A floating interest rate is nothing but an interest rate that can change. It is generally in sync with the base rate given by the RBI. If you take out a loan with a variable interest rate, the rate can keep changing almost every quarter. Floating interest rates depend on multiple economic indicators. These indexes include information given by banks and NBFCs. The interest on your loan also depends on the base rate released by the RBI. The base rate varies depending on various economic factors, which forces the floating interest rate to change accordingly. With changes in the base rate, the interest rate on your loan will also alter. The economic indicator your lender uses is based on the loan you are applying for. It comes with some risks, like your interest rate rising during the loan period. This pushes your budget to the limits as the higher rate inflates your monthly payments. For example, Ram and Vidya are buying a house, taking a loan of Rs 5,00,000, over 30 years, and the interest rate is 7:1. This implies their loan’s interest rate is set at 2% for the first seven years. After the expiration of time, the loan resets to have a floating interest rate, which reverses once a year. In the eighth year, the interest rate increased to 4%. In the ninth and tenth years, the interest rate falls to 3.7% and 3.5%, respectively. The interest they finally pay on the loan will change annually in this manner until they pay off the loan in full. Advantages and Disadvantages of a Floating Interest Rate Floating interest rates are very common these days. Especially if you take out a personal loan, most of these loans come with variable interest rates. Here are some pros and cons of floating interest rates. Pros of Floating Interest Rate The benefits of a floating interest rate are as follows: The greatest pro of a floating rate fund is its relation to changes in interest rates. This is compared to a financial tool with a static income or fixed bond voucher rate. Floating rates are normally lower than fixed rates. This entails that when the interest rates have increased through the course of paying back the loan, the interest burden will still be lower than what follows fixed loans. No prepayment penalty is charged on loans with a floating rate. Floating rate bonds perform well, interest rates will rise as they work in favor of investors. This helps to reduce the volatility of their asset portfolio. It can be hard to agree on fixed or floating interest rates for a home loan. When it involves a short-term loan, it’s better to go for a floating rate. This is because you will be given a reasonable interest rate, and the interest won’t likely change greatly within a short period of time. Cons of Floating Interest Rate The disadvantages of a floating interest rate are as follows: It takes a long time for investors to reach their financial goals. This is because; a small reduction in the interest rate boosts a return on investment that is lower than what was expected. Both the lender and borrower find it quite problematic to stick to their budget and regulate their savings when dealing with a floating rate. If you can’t stick to a budget, it could lead to a longer loan period and more people not paying back their loans, which is a bigger economic risk. [B-02] Conclusion Understanding the floating interest rate, how it works, and the benefits shared with you may have motivated you to make a financial loan decision. Are you considering applying for a loan to pay back at a floating interest rate because the interest burden is lower? We recommend Piramal Finance to guide you through the process. Piramal Finance is an NBFC that offers financial guidance through a range of articles and blogs. It offers a variety of loans with a floating interest rate. Their interest rates are attractive, and they take the time to advise on which loan and interest rate are best for you. To know more about Piramal Finance, visit their website and check out the blogs and articles they have shared.

08-11-2023

GST

How Can GST Be Claimed on Mobile Phones: A Complete Guide by Piramal Finance

If you own a mobile phone, there’s a high chance that you’re also aware of the new tax imposed on it – the Goods and Services Tax (GST). Initially, the tax was meant to be levied only on food, clothes, and cars. However, with the increasing popularity of online shopping, the tax has now been extended to include a variety of other goods and services. So if you’re buying a new mobile phone or exchanging an old one, ensure you’re familiar with all the details regarding the GST on mobile phones. [B-01] Can GST Be Claimed on Mobile Phones? It’s tax season in India, so it’s time to start considering your income tax returns. One of the taxes you may be liable for is the Goods and Services Tax (GST). If you’re selling or using a mobile phone or any other electronic device in India, you may be subject to the GST tax. The tax is charged at 20% of the device’s price, plus applicable taxes. You must declare the GST on mobile phones when you submit your income tax return. If you’re an individual resident of India who owns or uses a mobile phone, it’s essential to know about the GST rules. For example, if you’re using your phone for work, you may be considered to be engaging in business and therefore liable for GST on mobile. It’s a good idea to familiarize yourself with the GST rules so that you’re not caught off-guard when it comes to tax season. How Did the Price of Mobile Phones Change Due to GST? As of July 1st, 2017, the Goods and Services Tax (GST) was implemented in India. This new tax applies to many goods and services, including mobile phones and other electronics. As a result, the prices of mobile phones went up, as did the amount of GST that was added. To recover the additional costs associated with GST, retailers have started adding it to the prices of mobile phones. If you bought a phone before July 1st, 2017, you can claim back the overpayment through an online portal or tax return filing process. So, if you’re looking to buy a mobile phone and are confused about the tax implications, don’t worry—we’ve got you covered. GST on Mobile Phones – Types of GST Applicable The Goods and Services Tax (GST) is a tax levied on most goods and services sold in India. This tax is known as GST (an abbreviation of “Goods and Services Tax”). There are three types of GST on mobile phones: central sales tax, state sales tax, and an integrated authority to oversee the convergences amongst states for the coordination of or to monitor a unified sales tax system. To claim GST on mobile phones, you must first register for GST registration. If you don’t register, you may be subject to penalties and possible legal action from the government. Make sure you’re registered and compliant with the GST laws before selling mobile phones in India. Can ITC Be Claimed on Mobile Phones? It’s that time of year again: tax season. And if you’re like most people, you’re probably wondering how you can claim GST (Goods and Services Tax) and ITC (Imports and Exports Tax) on your mobile phones imported into India. Well, worry no more, because this comprehensive guide will help you out. Additionally, ensure the following documentation is ready: an invoice or purchase receipt for the items imported into India and proof of registration with the relevant authorities. So, what are you waiting for? Start filing your returns today. Who Can Claim ITC? As a business owner, knowing about the tax implications of importing and using mobile phones in India is essential. GST can be claimed on mobile phones if they are brought into the country and used for business purposes. The user must have a tax registration number and invoice or purchase order number to claim ITC. The phone must also be in the same condition as when it was received, and all software and applications should still be included in the package deal. For added clarity, here is an example of how this could work: Assume you purchase a mobile phone from an online store inside India for use at your job. Since you’re using it for business purposes within India, you would then be able to claim input credit under Section 54(a) of the CGST Act 2017.” GST on Mobile Phones If you’re an international traveler and use a mobile phone in a foreign country, you may have to pay GST (general sales tax) on your purchase. GST is a tax that applies to most goods and services and is usually included in the price of goods. As an international customer, you must pay this tax on your purchases. To claim the mobile GST rate, you must fill out Form BIR-E and submit it with your proof of purchase. A few things need to be included with the form, including the item’s price and a UPC. Benefits of GST Impact on Mobile Phones The Goods and Services Tax (GST) on mobile phones has now been implemented in India. This has led to increased prices for handsets and accessories, but some benefits should be considered. For example, you can claim an input tax credit (ITC) on the entire cost of the handset under section 80G of the Income Tax Act of 1961. For example, if you have bought a handset costing Rs 20,000 and incurred GST of Rs 3,000, which is 18% of the purchase price, then you can claim ITC of Rs 16,000 on that handset alone. [B-02] Conclusion When you own a mobile phone, you must understand the costs involved. Furthermore, if you file a GST claim, you must look closely at the claiming procedure. If you need help understanding the procedure, you must reach out to professionals who can help you significantly in the long run. Experts at Piramal Finance know the entire procedure and costs of filing for GST. Furthermore, they can also help you claim the required amount of GST on your mobile phone.

08-11-2023

Know More

Why is it Important to Increase Credit Score

A credit score is a three-digit number that depicts your creditworthiness. It indicates your entire credit history. A credit score is also an important factor when it comes to acquiring loans. It informs the lender of your ability to repay. You might also get additional benefits, like better rates on mortgages and car loans, with a high credit score. Thus, maintaining a good credit score becomes important when you are trying to get a new credit instrument, like a loan or a credit card. Several factors can affect the credit score, like repayment history, credit mix, credit utilization ratio, etc. A credit score generally ranges from 300 to 900. Most lenders consider 700+ a good credit score. It makes acquiring large amounts of loans at lower interest rates easier. There are several benefits to increasing your credit score. Let’s take a look at them. [B-01] Benefits of Increasing Credit Score Easy Credit Approval Receiving a loan rejection can hurt. Therefore, it is best to maintain a good credit score. Having a good credit score increases your chances of loan approval. Lenders will be more willing to lend you the money. The waiting period may also reduce as lenders quickly sanction loans for people with high credit scores. Many lenders even offer pre-approved loans to individuals with healthy credit scores and strong credit histories. Lower Interest Rates A good credit score will inform the lender of your repayment capabilities. Thus, people with higher scores generally get loans at lower interest rates. This also means that you will be able to save a large chunk of money by paying less interest. There are further benefits, like discounts on the processing fee and other charges. This is why increasing credit scores can turn out to be really beneficial in the long run. Higher Credit Limit A healthy credit score not only provides a loan with lower interest rates but also helps in securing higher loan amounts and credit card limits. This is because a higher credit score ensures the lender that you have repaid the loan in the past without defaulting. Thus, it increases their trust to loan you a higher amount. Access to Better Credit Cards In addition to higher credit limits, a good credit score also ensures you access to better credit cards. You can unlock a wide variety of cards with several benefits, such as travel points, cashback rewards, and other advantages. These rewards also help you save money in the long run. Longer Loan Tenures Good credit scores can get you loans with longer terms. This will further increase your chances of repaying the loan on time. The option is great for people who want to repay the loan over a long period of time. However, keep in mind that a longer tenure generally means a higher interest rate will be paid. That is why it is recommended to keep your loan tenure short. Tips for Increasing Your Credit Score If you have a low score, you don’t need to worry. Your credit score can be increased. There are several ways to go about it. Let’s have a quick look at some of the ways you can increase your credit score: Review your credit reports regularly. Correct the errors that you find, if any. Pay your debts and bills on time. This directly impacts your credit score. Have a mix of credit products. Diversity can help increase your credit score. Keep your credit utilization ratio low. It is best to keep it as low as 30%. This shows a lower amount of dependency on credit. Keep your old credit cards. A longer credit history plays a key role in determining your credit score. It also acts as proof of reliability. Summing Up Your credit score plays a big role when it comes to borrowing loans. Poor credit history makes the whole loan-acquiring process difficult. Thus, it is important to have a good credit score. It helps obtain large loans at lower interest rates. You can even get longer repayment terms. A good credit score also makes sure the approval process is hassle-free and quick. Access to a variety of credit cards is another advantage of having a good credit score. These are the privileges that one can gain by increasing their credit score. For more finance-related blogs and other tips, head over to Piramal Finance. Our experts over there will solve all your related queries and make your financial journey more simple. [B-02] FAQs What is the ideal credit score to have? Generally, a credit score ranges between 300 and 900. Anything above 700 is considered healthy. However, you can get a loan or other credit products if you have a lower score. But the interest rates and loan amounts may not work to your benefit. Thus, it is advised to keep your credit score high. It helps secure larger loans at lower interest rates. What factors can affect the credit score? Many factors come into play while calculating a credit score. These include your repayment history, credit mix, credit utilization ratio, and so on.

08-11-2023

GST

What You Need to Know About the New GST Registration in 2022

Taxpayers register themselves for GST via the GST registration process. Once they have successfully registered, a special registration is assigned to them. This number is known as the “Goods and Services Tax Identification Number” (GSTIN). The 15-digit number is free of charge. You can verify your GST number and collect all the information. It allows businesses to collect taxes on the government’s behalf. After GST registration, the person can collect taxes from the customers. He/she can also claim the input tax credit on the tax he/she pays. Let’s get into the details of the new GST registration. [B-01] Criteria for GST Registration People who meet the requirements below should register for GST: Businesses with turnover above Rs. 40 lakh in normal states. This is for the supply of goods only. For special category states, the turnover limit is Rs. 20 lakh for the supply of goods. The special category states include: Arunachal Pradesh. Assam. Himachal Pradesh. Jammu and Kashmir. Manipur. Meghalaya. Mizoram. Nagaland. Sikkim. Tripura. Uttrakhand. Note: For suppliers of services, the threshold limit is lower. It’s Rs. 20 lakh for normal states. (For special category ones, the limit remains at Rs. 10 lakh.) Suppliers of interstate goods and services. People registered under the pre-GST law. People who pay tax under the reverse charge procedure. Non-resident taxable people. E-commerce operators provide a platform for supplies. People supplying through it should also register for GST. Input service distributors. People who supply online services from abroad to non-registered Indians. Steps for New GST Registration Visit the GST registration portal through the link: https://www.gst.gov.in/ Click on “Click the Services.” After that, click Registration. Choose “New Registration Option.” Go to the “I am” drop-down list. Select the “type of taxpayer to be registered” option. Choose the state for which registration is required. Select the district too. Enter the legal business name according to the PAN database. Indicate your email address. Also, enter your mobile number. Enter the captcha text correctly and proceed. On the OTP verification page, enter the OTP you have received via SMS. In the Email OTP field, enter the OTP you received via email. Click the PROCEED button. (NOTE: The OTP for both cases is valid for 10 minutes only.) Your Temporary Reference Number (TRN) is displayed on your screen. Login using the TRN and the captcha code. The “My Saved Application” page is displayed. Choose the edit icon under the “Action” column. The Registration Application Form is shown. There are 10 tabs on the top of the page. They are as follows: Business Details. Promoter/ Partners. Authorized Signatory. Authorized Representative. Principal Place of Business. Additional Places of Business. Goods and Services. Bank Accounts. State-Specific Information. Verification. You have to select each tag and enter the details. Enter the details of the bank account. Submit the required document. A verification tab appears. The details of the verification submitted in the form are shown. Sign the application digitally through a Digital Signature Certificate (DSC). It’s known as “e-signatures” or “EVC.” This is mandatory for LLPs and companies. To update, click the “Submit” button. Click Proceed. The DSC dongle must be kept inserted throughout the process. Select “Sign” from the pop-up window. Once done, the screen will display a confirmation message. Documents Needed for GST Sole Proprietorship PAN card and address proof. Proof of business premises like electricity bills. Cancelled cheque of the bank account. It shows all the details of the account holder. For Partnership Firm Pan Card of the firm. Partner Id. Address Proof. Partnership registration certificate. For LLP (Limited Liability Partnership) COI of the company (certificate of Incorporation). PAN card. Partner Id. Problems Faced at GST Portal and their Solutions Error Display on the GST Portal: Clear the cache if the portal displays an invalid provisional ID and password. You need to delete your browser history. Log in to the website again. You will receive a 10-digit token ID. If you get a 9-digit token number, place a zero at the end. Contact the GST helpdesk if you have any further problems. OTP Issues: You might not get the One Time Password (OTP) on the registered mobile number. The reason could be the “Do Not Disturb” status of the number. Fix the issue and start the registration process for GST again. For email OTP issues, check the spam folder. Changes in GST from 2022 The following changes were introduced in the GST in 2022– Government can restrict your Input Tax credit under these cases: Default in paying tax for small periods by a certain percentage. If the person uses ITC to pay taxes more than the limit. Obtaining excess ITC. Cancellation of GST if returns are not filed. Tax officers can cancel the registration in the following cases: Composite taxpayers fail to file returns for a fiscal year after the three-month deadline. Regular taxpayers fail to file returns for all continuous tax periods. Statements of outward supply must be filled in chronological order. The returns should be in sequence. There will be consequences if sellers aren’t paid timely under GST. Previously, the interests were imposed on the buyer. Now the liability attached to it will increase with time. Two-way communications are no longer relevant. The time to obtain an ITC has been extended. GSTR 3B can’t be filled for the current period if GSTR 1 for the prior period is incomplete. The last date to fill GSTR 5 and GSTR 5A will be the 13th of next month. There will be a late fee if TCS Returns are not filled timely. [B-02] Conclusion It is prudent for citizens of India to be well informed about the GST and its Registration. It’s a step to improve the economy and make it more formal. The changes brought in by the GST are for the benefit of trade and commerce. The article above has given you sufficient details for GST registration in 2022. For further details and help, you can visit Piramal Finance. There are many articles and blogs that will help you learn more about key finance topics.

08-11-2023

GST

All About GST on Laptops in India

Laptop users must be aware of laptop taxes. Since the tax was first levied on laptops, there have been inquiries on the applicability of GST on laptops and computer devices. We will discuss the various aspects of GST on laptops and computer accessories in India. From the brief history of laptop tax to the present day, we will cover everything you need to know about the taxation of laptops in India. [B-01] GST Rates on Computer and Laptop with Accessories The Goods and Services Tax (GST) is a new tax that was implemented in India on July 1, 2017. With GST, there are different rates for different types of items. For computer hardware and accessories, the tax rate is 18%. The final rate applies to all other items, including laptop computers. So, now that you know the basics, it’s time to head to the store and start stocking up on tax-free items. How Was a Tax Levied on Laptops in the Pre-GST Era? Before the introduction of the Goods and Services Tax (GST) on July 1, 2017, laptops and computer accessories in India were taxed under multiple indirect tax systems. Value Added Tax (VAT) - 5% to 14.5%, depending on the state in which the laptop was purchased. Excise Duty - A 12.5% excise duty was applicable on laptops manufactured in India. Central Sales Tax (CST) - If a laptop was sold across state borders, a 2% CST was levied (if the buyer had a valid tax registration) else, full state VAT applied. Customs Duty (for Imported Laptops) - Imported laptops were charged a 10% Basic Customs Duty (BCD). An additional Countervailing Duty (CVD) of 12.5% was applied (to offset excise duty on local manufacturers). Special Additional Duty (SAD) of 4% was levied to neutralize VAT impact. What is the Applicability of GST on Laptops? With the Goods and Services Tax (GST) implementation in India, many people wonder what this tax will apply to. Thankfully, laptop computers are included under the tax rules. As of now, the GST will apply to all electronics. This includes laptop computers, tablets, smartphones, and other electronic equipment. Buying a laptop for personal use or business purposes, the GST applicable will be 18%. However in case of business, you can claim Input Tax Credit (ITC) on the GST paid, reducing the tax liability. How are GST Rates Determined? Goods and services in India are subject to the GST (Goods and Services Tax). This tax is applied at 10% on the value of the goods or services, whichever is greater. This means you don’t have to worry about paying GST on items that cost less than 100 rupees. However, if an item costs more than 100 rupees, you must include the product’s full price in your GST calculations. This is important to remember, as it can save you a lot of money in the long run. If you’re looking to buy any new items, it’s important to consider this tax and factor it in during your calculations. What is the HSN Code for Laptops and Computer Devices? When buying a laptop or computer device in India, it’s important to know the HSN code. This code is a unique tax identifier for laptops and other computer devices and is required by the government of India. It helps businesses to classify their products so as to determine the tax on them. You can use the HSN code to look up certain specifications about your device, like the processor type or RAM size. Impact of GST on Other IT Accessories The impact of the Goods and Services Tax (GST) on other IT accessories has been far-reaching. Most items previously taxed at a 5% rate now fall under the 18% GST bracket. This includes digital devices like smartphones, laptops, tablets, and e-readers. So, whether you’re looking to save on your tech accessories or know someone who is, keep up with the latest tax news. How is GST Calculated on Laptops? GST is a tax that applies to most consumer goods in India. When you purchase a laptop, the GST amount will be shown on the invoice. You need to pay the GST to the vendor before taking possession of your laptop. Basic GST breakup for LaptopsThe GST rate on laptops is 18%, which includes: CGST (Central GST) = 9% SGST (State GST) = 9% (if purchased within the same state) IGST (Integrated GST) = 18% (if purchased from another state) Let's say you buy a laptop with a base price of ₹50,000. According to 18% standard rate the gst applied will be 18% i.e Rs 9000 and hence the laptop will cost you Rs. 59000. Here if the laptop is purchased in the same state, the sgst and CGST would be Rs. 4500 each and if its purchased from another state the IGST will be Rs. 9000. Types of GST Applicable to Laptops, Computers, and Accessories For starters, the GST is a federal indirect tax that applies to laptops, computers, and accessories. This means that the tax rate, value of the goods, and other specifications are all listed on the GST website. Additionally, if you’re buying a laptop or computer in India and it’s not explicitly mentioned on the invoice/bill/receipt – then it’s likely subject to GST. Keep this in mind when shopping, and be prepared to pay the tax on your purchase. [B-02] Conclusion This blog has provided you with a comprehensive understanding of the tax implications when purchasing laptops in India. You now have insights into the applicable GST rates for laptops, computers, and accessories, as well as the HSN (Harmonized System Number) codes. Staying informed about these tax details can help you make smarter financial decisions. If you are looking to buy a laptop, whether you're a student, a professional, or a business owner, you can apply for Piramal Finance personal loan and choose flexible options to help you finance your purchase with ease. Apply today and take home your dream laptop without financial stress!

08-11-2023

Know More

Best Tips to Increase Your Credit Score in 2022

A credit report contains all the information regarding your borrowings and repayments. Based on this information, your credit score is calculated. A good credit score is a sign of a healthy financial life. It is an indicator of how well you manage your credit. It also affects your overall credit report. That is why it becomes important to keep your credit report in good shape. [B-01] What is a Credit Report? A credit report acts as proof of your creditworthiness. This makes acquiring loans or credit cards easier. With a good credit report, you can secure larger personal loans online at lower interest rates. It is an essential parameter that lenders consider to ascertain your repayment capability. A well-maintained credit report ensures that you can efficiently repay the borrowed money without defaulting. Some of the things that a credit report reflects include: Current debts: Whenever you apply for a new loan, the lender will check your current debts or obligations. This will help them determine your capacity to repay the loan. The lender will look at your FOIR, which must range between 30% and 50% to secure a higher loan amount conveniently at lower interest rates. Types of credit availed: Your credit report also reflects the variety of credit products you have availed of in the past. A good mix of credit products helps mitigate the risk of repayment failure and also helps improve your credit score. Past credit performance: Another thing your credit report reflects is how well you have managed your debts in the past. It shows if the EMIs have been paid on time. Or if there is a history of defaulting during paying debts. A good history of repaying debts helps increase the credit score and makes securing a personal loan online easier. Importance of Credit Report Maintaining a healthy credit report gives a borrower many benefits. It also makes the whole process of acquiring personal loans online more smooth and hassle-free. A good credit report can result in: Increased creditworthiness Higher amounts of loan Lower interest rates Quick approval of loan applications A lot of factors can affect your credit report. One of them being your credit score. Factors ranging from your repayment history to your credit utilization have an impact on it. However, you don’t have to be worried if you have a low credit score. Some actions can help you optimize it. Let’s have a look at some tips and techniques to increase your credit score. Correct Errors in Your Credit Report One way to find out where you need to work on your finances is by checking your credit score regularly. Review your credit report frequently. A lot of online portals let you check your credit report for free. Errors in the report can affect your credit score. Look for mistakes, and if you find any, raise a query with the bureau. Correcting errors can help improve your credit score. Paying Debts and Bills on Time A lender will always check your relationship with your debts in the past. Whether you have paid your debts on time or not is also reflected in your credit report. Timely payment of debts and bills has a big impact on your credit score as well. It increases your creditworthiness, which helps when acquiring new loans. Hence, make sure you pay your credit card bills and other EMIs on time. Keep Your Older Credit Cards Another element that your credit report includes is the duration of your credit history. It plays a key role in determining your credit score. A lengthy credit history of a borrower is proof of their reliability. Thus, keep your old credit cards active. An older credit card can indicate your ability to manage your finances. This will result in an improved credit score. Have a Mix of Credit Products Keeping a diverse mix of credit products can help increase your CIBIL score. The diversity can be a mix of secured and unsecured loans, credit cards, and other lines of credit. Paying the bills on time and in full will result in an increase in your credit score. But make sure you have figured out a repayment plan before you take on more credit. Keep Your Credit Utilisation Low It is best to keep your credit utilization as low as 30%. This shows that you are not completely dependent on credit. If you spend the majority of your money on credit, make sure to pay your bills on time. If you fail to do so, this will lower your credit score. Failure to repay the bills will also leave a negative impression on your credit report. [B-02] Conclusion Maintaining a healthy credit report is highly important. A lender determines your credit history and creditworthiness based on it. Your credit report contains all your financial information. This information helps the lender calculate your credit score. A good credit score can pay off in various ways. You may get larger personal loans online at lower interest rates. Not only that, but it makes the whole process of acquiring a loan easier and quicker. We have mentioned the ways you can improve your credit score and overall credit report. For more informative blogs and other tips, you can reach us at Piramal Finance. Our experts will guide you through your finance-related queries.

08-11-2023