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Home Loan

Top Benefits of Loan Against Property in 2022 You Need to Know

Financial problems often come up when you least expect them. People who need loans have access to several different lines of credit. You can choose the best fit for your needs through loan products. Getting a loan can be time-consuming. It is because you have to go through the necessary paperwork. You also have to satisfy your customer checks and do other formalities. If you are not eligible for any loans, you can obtain a loan against property. It is often known as a LAP. An entirely constructed freehold residential, commercial, or industrial property is always a good bet when looking to borrow substantial quantities of money. A loan against property is flexible. And it doesn’t depend on what it will be used for. So most people prefer to get one for all their big and small needs. Let’s get a grasp on what a Loan Against Property is. And some of the benefits it offers in 2022. [B-01] What exactly is a Loan Against Property or (LAP)? A loan against property is a very secure loan. It can be advantageous to salaried individuals and businesses. You can put your home or business up as collateral for the loan. Then you will have your application approved. The financial institution will sanction the credit amount. It is proportional to the property’s current market value. To secure a loan, you can use your primary residence or another piece of real estate you own as collateral. You must check to see if there are no doubts about the property’s title. The lender agrees to provide the loan on the understanding that the borrower will pledge their property as collateral for the loan repayment period. Also, the lender keeps the borrower’s necessary documentation and property title. It lasts until the borrower repays the loan. In cases of default or nonpayment, the lender might seize the borrower’s assets. They can sell them to pay off the loan. Since a loan against property is very secure, it has several benefits. Suppose you are considering a loan against your property. This list of benefits will help you determine if it is an ideal fit for your budget and needs. Here are the top 7 benefits of getting a loan against property in India A higher loan amount One of the best things about a loan against property is that you can get a considerable loan. The lenders determine the loan’s value based on the property’s current value on the open market. They use a ratio known as the “loan-to-value ratio.” It helps to make these determinations. Borrowers can get between 70 and 80 percent of the property’s actual market value from lenders for the loan’s whole term. Flexible repayment tenure The payback period for a loan against property can be adjusted to suit your needs. It makes meeting your monthly installment payments easier. Secured loans, like mortgage loans, have a 15-year repayment period. The extended time frame decreases the borrower’s EMI payments, interest rates, and stress. It gives them time to figure out their finances and set aside the monthly EMI for loan repayment. Utilization of the property over time Suppose you acquire a loan against your property. You can still use it and exercise your ownership rights even after repaying the debt. Therefore, even though the property is being used as collateral for the loan, you still receive the benefits initially promised you by the asset. You can use different types of property as a mortgage. No matter if it is rented out or owned by the owner, if it is a home or a business. Easy eligibility requirements to meet Applying for a loan secured by real estate has fewer requirements. It is less than applying for an unsecured loan like a home loan. However, the qualifying requirements may differ. The following are some factors that are typically required. The borrower needs to be between 21 and 25 years old, at the very least. It is required that the borrower be a resident of India. It is required that the borrower be self-employed. Or they should get regular payments from an employer. Even a person or corporation can apply for a loan secured by real estate. The potential borrower must demonstrate a history of continuous employment. It can be either their own practice or a firm. The potential borrower is required to have a certain quantity of monthly or annual net income. (The maximum income a person can make depends on whether they are salaried, self-employed, or work for a firm or company.) Quick loan approval Loans against property have the advantage of a faster application and verification process than unsecured loans. Unsecured loans don’t require any collateral. So the lender can’t rely on anything the borrower owns as security. Therefore, the screening process and eligibility criteria have been made more stringent. Lenders now check the borrower’s repayment capacity in greater detail. As a bonus, you can apply for a LAP online, saving you time and effort. You should anticipate that the loan amount will be authorized on the same day that it is requested. Minimal documentation required One further perk of borrowing against property is the small amount of paperwork involved in getting the loan approved. The borrower is responsible for providing the following. Address proof – (Passport / Rent agreement / Electricity or utility bills) Identity proof – (Pan card / Aadhar Card / GST registration) Bank statement proof – ( Statement of an active bank account, salary credit statement) Property documents Income proof – ( Income tax returns, salary slips, employment letter) Low-Interest Rates As a loan against property is secured, the lender knows they have something to pull back on if the borrower doesn’t pay or doesn’t pay on time. The use of the property as collateral is highly advantageous. Because of this, financial institutions provide loans against property at interest rates that are more reasonable when compared to those of other mortgage or secured loans. The interest rate charged on a loan secured by property can vary from one lender to the next. Initial rates are typically between 8% and 10% per year, with some lenders charging as much as 20%. This low interest rate ensures you get the most excellent benefits possible from a loan against property and eases the burden of paying considerable EMI payments every month. [B-02] Conclusion As you can see, taking out a loan against property has various advantages. Make sure you get extra benefits like easy paperwork, door-to-door service, and quick processing to improve your experience. When looking for a loan against property in 2022, you should consider the lender’s credentials carefully. Consider the benefits and disadvantages of each option, then choose the one that works best for you.
08-11-2023
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Business Loan

How Can You Grow Your Revenue With An MSME Business Loan?

Any product you place in your grocery bag or even order online is a part of the Micro, Small and Medium Enterprises (MSME) ecosystem. MSMEs are accelerants to a growing and economically sufficient India. These small businesses are significant contributors to economic growth. There are times when MSMEs run into financial trouble and during these times, it is essential for business owners to have access to MSME business loans or other startup business loans to help them build their businesses. This article explores the features and benefits of MSME business loans and other startup business loans. [B-01] What Are MSME Loans? MSME loans are usually unsecured loans of a special nature that provide start-ups, small business owners, female-lead companies and more with the means to finance themselves. MSME loans may also be given to department stores, salons, restaurants, clothing and similar businesses. MSMEs can go through financial issues during certain unforeseen circumstances and the aim during these times is to get access to finances to grow and expand. MSME loans are multi-purpose loans that borrowers can utilise for various purposes including procuring inventory and buying or renting property for business purposes. Features of MSME Loans In the matter of exports and imports, MSMEs are big mechanisms and contribute to 50% of India’s revenue. They are starting points for newcomers who are entering any profession and are an opportunity for them to flourish. Considering all this, MSMEs not only accelerate development in the urban sector but also integrate development in the rural sector as well. However, with all these developments, including being the country’s reason for sustainable development, MSMEs face several dangers and challenges to survive. The lack of sufficient funding is the main issue. Newer technology, better infrastructure and talent acquisition can be a hassle. For that reason, an MSME business loan is a great way to increase revenue and propel businesses to success. The Government of India has created an innovative framework for MSMEs to get business loans easily. These MSME business loans have been a constant propellant for new MSME businesses. Small businesses during the pandemic and other difficult times can take advantage of these finances to generate revenue and propel the growth of their MSMEs. Different MSME Business Loan Programmes The different types of MSME business loan programmes include: Pradhan Mantri Mudra YojanaThis is an MSME business loan that offers small and non-farm micro-enterprises with the possibility of availing loans of Rs. 10 lakh. The loans are offered by banks, micro-finance lenders, MFIs and NBFCs. Prime Minister’s Employment Generation Programme LoanThis unique loan is a credit-linked subsidy program. This specific loan is provided to groups that have covered 15% to 35% of the project’s total cost. Advantages of an MSME Business Loan There are many advantages of an MSME business loan including: You can get an MSME business loan with no collateral. Your company or organization can receive income tax exemptions, industrial promotional subsidies, safety from late payments, reimbursements for ISO certifications and also concessions on electric costs. MSME business loans are quickly approved through online portals and the loan amount is quickly and easily sent. MSME business loans are easy to manage from the banking websites of the business’s financial service providers. Ways To Grow Your Revenue With MSME Business Loans These are the following ways in which MSME business loans can help you grow your revenue: MSME business loans are usually disbursed quickly and lenders do not take more than a week to disburse the loan amount. They are also collateral free and do not have a lengthy verification or inspection process. MSME loans can help in tackling cash flow issues when running a business. In off seasons when sales are down, businesses suffer. During those times, MSME business loans can be of great assistance, and interest will only be charged for the amount utilised. MSME entrepreneurs do not have the means to keep investing their savings into their businesses. Getting startup business loans is one of the best ways to build and expand their business. MSME business loans are ideal sources of funds to meet the requirements of borrowers for business growth. They can utilize these funds for a range of activities that are related to the growth of their business revenue. MSME business loans can be utilised to meet working capital, buy raw materials or inventory, purchase fixed assets, and equipment, adopt newer technology and importantly, invest in marketing. Eligibility Requirments For MSME Loans These are the eligibility requirements for MSME loans: Credit ScoresFor a business to be eligible for MSME business loans, the credit score is important. If borrowers default on loans, then lenders face credit risks. The lender will assess the applicant’s credit history and credit score. A great credit score such as 750-800 and above helps a business get startup business loans easily and also helps the borrower negotiate a better interest rate. RegistrationLenders will grant MSME business loans to registered businesses. Businesses must also obtain a unique number from the relevant tax authorities. Business PlanLenders who provide MSME business loans assess business plans for future growth. These business plans offer a realistic view of the business’s future. [B-02] Conclusion MSMEs are the lifeblood of the Indian economy and provide a large portion of the country’s growth. Many businesses, in their initial stages, face trouble with stable cash flows and profits to invest in their businesses. Hence, MSME business loans are an important form of financial assistance. MSME loan programmes create several unique opportunities to help in the growth of emerging companies in India. Significant features of MSME business loans include quick division of amounts, flexible repayment tenure and good interest rates. These features make MSME business loans attractive to businesses that want to grow and expand. For more information on MSME business loans and other startup business loans, visit Piramal Finance to read more articles and receive guidance on how to grow your revenue.
08-11-2023
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Business Loan

How Can You Get a Small Business Loan Without Collateral in a Few Simple Steps

Initiating and sustaining a business requires good ideas and sufficient capital. If you are a small business owner, you might have experienced a need for funds at one point or another. You might think of loans, but there are criteria for providing collateral. However, it is not easy for everyone to have one, reducing the chances of getting a secured loan. But there is hope. Today, entrepreneurs can get collateral-free business loans easily. With the government coming up with schemes and banks and NBFCs supporting them, you can avail of small business loans at reasonable interest rates. Let us know how. [B-01] Collateral-free Loans: Features and Benefits As the loan is collateral-free, it differs slightly from any traditional loan. You must also be aware of collateral-free loans’ features and related benefits. Collateral-free: You don’t have to submit any assets to avail of the loan amount. Documents: All you need is business proof, identity proof, and a simple KYC (know your customer) process. Fast processing: As you don’t need to provide any collateral, the amount is processed almost instantly. Flexible interest rates: You get a competitive interest rate and thus have less burden than traditional loans. Easy repayments: You have the option to repay at your financial convenience. Now that you know about the features of collateral-free business loans, it is time to explore some government schemes under which you can get small business loans. Government Schemes Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) The Indian government launched a credit guarantee trust (CGT) in collaboration with SIDBI (the Small Industries Development Bank of India). You can get a loan from any private or government bank in India. For more information, go to www.cgtmse.in. Pradhan Mantri Mudra Yojana (PMMY) Under the Mudra Yojana, you can get the following types of loans: Loan Type Amount Interest Rate SHISHU Up to 50,000 INR 12% @ five years of repayment KISHOR 50,000 to 5 lakhs Depending on the lender TARUN 5 lakhs to 10 lakhs Depending on the lender To know more about the scheme, visit this website: mudra.org. How to Apply for Collateral-free Loans? You can obtain more information about collateral-free loans by visiting the lender’s official website or visiting your nearest physical branch. In both places, you will find an application form that you can fill out to apply for the loan. Several lenders also have customer service executives who can guide you through the entire process. Now, let us know the eligibility criteria. Eligibility for a Collateral-free Business Loan To avail of a collateral-free loan, you need to meet the following criteria: You need to be an Indian citizen between 23 and 65 years old. You must be self-employed and have your own business. A good credit score (usually more than 700) increases the chance of getting approved. Visit the website of CIBIL to know more. Lastly, you must have a business history of around three years. You also need to know how to improve your chances of becoming eligible. Things to Consider While Applying for a Collateral-free Business Loan There are options for you to get collateral-free loans. However, in some cases, there are chances that you may get rejected. Therefore, you can follow some steps to improve your chances of getting a loan. Explore your requirements: You must know why you are taking the loan and how much is sufficient for your business. Justification in front of lenders is necessary to improve your chances. Furthermore, your reasoning must be clear in your mind. Improve your credit score: If your credit score is below 700, you might have difficulty getting a loan. Therefore, you must try to bring it up to $700–750 to get eligible and negotiate lower interest rates. Clear any pending loans: There are chances of not being eligible for a collateral-free loan if you have multiple pending loans. You should clear these debts before applying for a fresh loan, which can increase your chances. Come up with a robust business plan. Before applying for a collateral-free business loan, a strong foundation and business plan must present in front of the lenders. Trust and confidence are two factors that will help you move forward with your plan. After ensuring your eligibility, the bank can ask you to present some documents for KYC. Let us delve into the details. Documents Required for a Collateral-free Loan Bank Statements: You must have a bank account with financial activity for the past six months. Some lenders may ask for a bank statement before disbursing loan amounts. Business proof: Registration proof, such as the GST number and address of the business, is also required. Also, you can expect the lenders to ask you about your business details. Identity Proof and Address Proof: You can present either your Aadhaar card or driving licence for your identity and address proof. Passports are also valid. PAN Card: You must have your Permanent Account Number (PAN) for KYC. Two recent passport-size photos [B-02] Final Takeaway After reading the above information, you might be well-versed in all the information related to collateral-free business loans. As a business owner, no matter how small or large, you can easily get loans from banks and other financial institutions. However, if you are looking for easy disbursement of collateral-free loans, you must consider Piramal Finance. They have simplified the online loan system for your business needs. In addition, you can also get an expert consultation about your requirements and other business loan-related information.
08-11-2023
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Business Loan

Top Advantages and Disadvantages of Startup Business Loans In India

When you begin a startup, it is one of the best feelings in the world. Several like-minded individuals collaborate on a shared idea that can shake up the entire industry. But there is a lot of difference between having an idea and turning it into reality. Enough funds are vital to get the startup venture off the ground and help it grow. Like most startups, you might also face a lack of funds at some point. You must look for a source of funds, and this is where a business loan can come to your aid. Many banks and NBFCs offer startup business loans that help startups with their money needs. Startup business loans can be secured or unsecured based on the amount you need. You can use the loan amount only for business and related activities. The loan tenure for such loans can go up to 8 or 10 years. There are many advantages and disadvantages to applying for startup business loans. Read on to learn about them and make an informed choice. [B-01] How to Apply for Start-up Business Loans? Many banks and NBFCs offer startup business loans. If you want to apply for a business loan as a startup, then here are the steps you must follow: Online Log on to the website of the lender or a suitable mobile app. On the home page, visit the business loan section. Here you will find the link for startup loans. Click on it. There can be multiple startup business loans available. Select the best option. Here you will need to enter basic details like the business’s name, vintage, ownership, and other vital information. You may also need to upload some papers like licenses and registrations. Click on the submit button. The lender will process the application and revert if more papers are required. If they approve your profile, they will send an email confirming it. You will need to sign the loan agreement, provide cancelled cheques, and other essential documents related to the business and partners/directors. After the process is complete, the money will be sent to your account. You can use it according to your business needs. Offline Contact the branch office of the lender and connect with the business loans department. Ask them about the various startup loans that are on offer. After understanding all the loan types, select the best business loan for your needs. They will give you several forms, which you must fill out and sign. Then you must also provide the vital documents that they need to process the application. After you apply, a rep will come to your premises and verify the details. Make sure you have all the documents with you. Then, they will process the application. If you meet the lender’s rules, they will approve the loan. The money will be sent to your account in a few hours, and you can use it for your business needs. Advantages of Startup Business Loans Here are some of the benefits that you can get with startup business loans: High-value loans: You can get high-value business loans to meet all your needs for money to pay daily expenses and create assets. Long Tenure: Many lenders offer 8–10 years of loan tenure for startup business loans. This will ensure you get an EMI amount you can easily pay without stressing your finances. Easy Process: Most lenders follow an online process for this business loan. You only need to provide some basic papers to process the loan. In most cases, it takes between 7 and 10 days to complete this process. Many lenders will offer their help in the process if you require it. No Security Needed: You can apply for this business loan even if you do not have any security to offer the lenders. Most lenders offer high-value unsecured business loans that will give you enough money to take care of your business needs. Flexibility: While you must use a business loan for the company’s needs, there is no limit on how you can use this money. There is a lot of flexibility regarding how you can use the money for your start-up. No Venture Debt: When you can get a business loan from a bank or NBFC, there is no need for you to apply for venture debt. This ensures that you do not need to give a share of your company to get the money to grow. Disadvantages of Startup Business Loans Here are some of the issues that you can face with startup business loans: High interest rate: Most startup business loans come with high interest rates as they are unsecured. You will have to pay high EMIs right from the next month. This can stress your finances in this crucial growth stage. High EMIs: The loan tenure for such loans is capped at around ten years, and the interest rates can be high. You must be ready to pay high EMIs for your startup business loan. False sense of security: Easy access to a business loan can give you a false sense of security, and you might take out a high-value loan when you do not need it. This can lead to wasteful expenses that you cannot afford. [B-02] Startup business loans are very useful for new startups needing urgent money to grow and expand. It is essential, though, that you select the best lender for your business loan. Piramal Finance is a leading NBFC in India that offers high-value business loans at low-interest rates. Contact their experts to discuss your needs and get the best loan offer for your startup. You can also read their blogs and articles to learn more about other loan options.
08-11-2023
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Business Loan

How Can You Get Low Interest Rate On Business Loan In Festive Season At Piramal Finance?

The festive season is an important time for many businesses to shine. The demand for products and services usually increases during this time. This means that most businesses would need a business loan to enhance their production capacity. At Piramal, we offer online business loans with competitively low-interest rates. This article provides details of how your business can be eligible to avail of Piramal’s low business loan interest rate. [B-01] Things We Consider for Business Loan at Low Interest 1. Credit Score A good credit score is essential if you wish to receive a low-interest rate on your business loan. If your credit score is between 750 and 900 you can get a low business loan interest rate. So, you must constantly check your credit score to ensure that you are above the required value. The higher your credit score, the greater the likelihood of you receiving a lower interest rate. 2. Good financial history If you have taken loans in the past, you must maintain a good repayment history. We offer a good business loan interest rate to businesses that can maintain a stable financial history. 3. Consider a long-term business loan We understand that the festive season is a great time for a short-term business loan. However, long-term business loans usually receive better interest rates. You might want to consider your 5-year plan when you are deciding to apply for a business loan. The longer the term of your online business loan, the lower will be your interest rate. 4. Business Experience A well-established business means a secured business. If you have been running your business for a long time, your business loan interest rate will be lower. However, if you are just setting up or new to your business, the interest on your business loan will be higher. 5. Good Relationship Are you our existing customer? So we have a good relationship? If yes, we might consider reducing your business loan interest rate this festive season. It will be our way of showing gratitude to have you with us. 6. Collateral If you are applying for a business loan, chances are that you need to offer a certain amount of collateral. Make sure you have prepared the necessary collateral or security you plan to offer before applying for the loan. A Collateral can help you get a low business loan interest rate anywhere. 7. Annual Turnover Like every lender, we also set the business loan interest rate on the annual turnover of your business. High business turnover will mean lower interest on your business loan. However, if your turnover is low or not at par with our satisfaction, we might charge you a bit higher interest. 8. Profits and Revenue If you are looking to get a business loan at a lower interest rate, it is important to demonstrate that your business has a good track record. The simple way to demonstrate this is by showcasing that you have a track record of making profits. We consider your business’s monthly, quarterly and annual revenue and your annual profit to decide the business loan interest rate. Show us good numbers and we will reduce the interest on your business loan. Why Choose Piramal Finance? 1. A Wide Range of Services We at Piramal offer various services that might be of interest to you and your business. These include personal loans, as well as microfinancing. Looking into these options might help us understand you and your needs better. We are more likely to give lower interest rates to people who have already developed a relationship with us. 2. Competitive Rates Do not spread yourself too thin by applying for loans in other places. We at Piramal offer extremely competitive rates. If you apply for loans in a lot of other places, this might impact your credit score. In turn, it will reduce your chances of getting a business loan at Piramal at the desired interest rate. 3. Easy to Avail We at Piramal Finance believe in making finances easily available to you. Our online business loans are easy to apply for and carry a simple process. But do not take our word for it. You must do the research that helps you arrive at your conclusions. Taking a business loan is a big commitment. You must be completely sure of the choice you are making and feel confident about it. 4. Refinancing Apart from offering business loans, we can also refinance your previous loans if you have any. You can get a better deal, like a lower interest rate or a higher amount with us. Contact our professionals to know the details of refinancing at Piramal Finance. 5. Foreclosure and Pre-payment Some lenders don’t allow pre-payment or foreclosure of business loans. But we do. To know more about our foreclosure and pre-payment facilities, consult someone at our nearest branch. [B-02] Conclusion The festive season is a pivotal time for businesses because they are usually busier during this time. We at Piramal Finance want to ensure that your business can thrive and take full advantage of the opportunities that the festive season provides. You can look into the exact eligibility criteria for business loans on our website. You may also want to consider other loans, which you can read more about on the website of Piramal Finance Don’t wait for long, and apply today!
08-11-2023
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Tax Savings

How Can You Avail Maximum Tax Benefits On Home Loan In India

Owning a home in these times and during such economic conditions is regarded as highly valuable. Your own home could be a prized possession as it could be used as a homely shelter as well as a beneficial investment for the future. This dream can come true for every Indian citizen with a housing loan. The Government of India is helping you avail maximum possible benefit in the form of tax reductions on your home loan. But as you would have guessed the entire process is quite detailed and could get complicated if not understood properly. The government has launched many schemes supporting the Indian housing sector. These schemes have also brought down the issues of accessibility and affordability. This article will help you understand the multiple tax benefits on housing loans. [B-01] Home loan Tax Benefits A home loan comes with both principal repayment and interest payment. This implies that both these categories are certified for tax deductions. These benefits will help your cash flow better and will help you reduce your tax payments, an amount which will definitely be significant. Nature of Housing Loans Tax Reduction The Government of India has made sure that Indian citizens get various tax benefits under the Income Tax Act 1961. Let’s see what are a few of the tax benefits that can be availed on home loans: Tax reduction of principal amount repayment: Under section 80C, this home loan deduction makes you entitled to avail of a reduction of about 1.5 lakh. This applies to both rental and self-occupied property. However, there are a few conditions: You cannot sell the property until and unless you have completed five years of possession to avail of this deduction The property should be completely constructed before this deduction is availed This includes the registration fee as well as stamp duty but can only be claimed once Tax reduction on the amount of interest paid: Under section 24B, this housing loan tax deduction can make you entitled to up to 2 lakh worth of interest amount from your gross annual income. This applies to a self-occupied house, or the one that’s being constructed, provided that the construction is over within 5 years of the loan availed. If in case you own two homes, the tax deduction still cannot be more than 2 lakhs. Tax reduction for joint owners of the property: Under section 80 C, if you have taken a joint home loan, you are entitled to apply for a deduction of about 2 lakhs on interest and 1.5 lakhs on principal repayment each. This basically means that the deductions will double as opposed to when availed by a single person. However, both these individuals are required to be the co-owners of the property and both should be paying the EMIs. Tax reduction on stamp duty and registration charges: Under sections 80 C and 24 B, other than the deductions on the principal repayment of the housing loan, you can also avail of stamp duty and registration charges up to 1.5 lakhs. However, this can be claimed only for the year the expenses are incurred. Tax reduction for first-time buyers of property: Under section 80 EEA, you are eligible to avail of an additional deduction of 1.5 lakhs. You are however supposed to not exceed the amount of 45 lakhs as stamp duty if you’re a first-time buyer. Also, the value of your house should be less than 50 lakhs. Even if you haven’t occupied the house yet, you can still claim this deduction. This deduction can only be availed between the 1st of April of one year and the 31st of March of the next year. Tax reductions on the second property bought: You can avail of all the home loan deductions available as mentioned above. Earlier, you had to self-occupy one of the properties and the other had to be lent out but now such a restriction is crossed off. Tax reduction on the amount of interest paid for an under-construction property: If the property you’ve purchased is under construction, you would be paying EMIs for the same. Hence there are two types of deductions on interest available for you. One is pre-construction interest and the other would be post-construction interest. As a part of pre-construction interest, the deduction is done in five equal instalments starting from the year the property was constructed or obtained. Therefore, the total deduction that’s available to you is 1/5th of the pre-construction interest + interest pertaining to the post-construction period. Calculate Tax Benefits on Home Loan There are multiple calculators online that will help you to calculate tax benefits on housing loans. There is some basic information that you will have to fill up and then you are set to go: Your annual income Interest paid on the home loan Principal repayment amount on home loan Tenure Starting date of your home loan [B-02] Conclusion If you have taken a home loan and have all the way paved out for you, it still doesn’t harm you to get some extra and significant savings on tax. After all, all this is for you to keep your future as safe as possible and take your overall net worth to a higher level. For something as intricate as availing tax benefits on loans, you need to keep a lot of things in mind and make sure that the sources from where you get information are correct and reliable. If not, misleading information could push you toward fraud and debt. However, Piramal Finance is the one source that you can always count on for dependable information. Get started today!
08-11-2023
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Other

How Can You Buy AC on EMI in Festival Season – Piramal Finance

The festive season is one of the best times of the year. People are happy and in a joyful mood. Brands offer great deals on products like air conditioners and other home equipment. These offers make the festive season the best time to purchase the best air conditioners for your home. But then you have to take care of various other expenses as well. Hence, you cannot empty your savings as it can leave you vulnerable in future. This is where you need to opt for a personal loan. Many banks and NBFCs offer a range of personal loans for their customers, but Piramal Finance gives the best deals. These loans do not need security. They are available from Rs. 1 lakh to Rs. 10 lakhs. [B-01] You can use this money for any needs that you may have. This includes buying the best air conditioners as well. In this case, the loan tenure ranges between 12 and 60 months. There is no need to make any lump sum payment. This is because you must repay the loan on EMIs. Hence, a personal loan can be the best way to pay the AC price. Read on to learn more about buying air conditioners on EMIs during the festive season. How to Buy the Best Air Conditioners on EMIs? There are two ways in which you can purchase the best air conditioners using EMIs with Piramal Finance. Here are all the details that relate to both of these options. Offline If you prefer to purchase from a retailer near your place, then these are the steps that you must follow: Visit the retail outlet or showroom where you wish to get the air conditioners. Now, you must select the best air conditioners you like and finalize the price. After making a decision, ask the salesperson about the EMI options. The salesperson will take you to their EMI financing officer. You will need to provide a copy of your Aadhar Card, PAN Card, or any other ID proof they may ask for. You will then need to sign the invoice and provide it to the officer. Then, you must set ECS instructions against your bank account. For this, you need to provide a cancelled cheque. Make sure this cheque is from the account where you have gotten the personal loan credit. You will then need to sign the loan agreement and provide any other details the officer may need. After you complete the process, they will ship the AC to your place. The installation will be done as per your preferences. Now that the ECS is set, you need not deposit the money every month. Put it in your account, and the EMI will be auto-debited from your account on the set date. Online If you prefer to buy the best air conditioners from an online store, then you will need to follow the steps listed here: Visit the online store you prefer and look for the best air conditioners. Check the AC price for every model with care. Add them to your shopping cart. You will now need to log on to the shopping cart page and click on the place order button. You will need to confirm your identity, address, and other details as the need may be. On the checkout page, you will need to make the payment for the air conditioners. Here you have two options. You can opt for credit card EMIs or debit card EMIs. Select the best option that meets your needs and enter the required card details. Make sure you have enough balance in your account. As soon as you make the payment, the order will be confirmed. The online platform will ship the air conditioners to your address. They will also help book the installation service. Once this is done, you will have to do one of two things. If you are paying by credit card, a limit up to the bill amount will be blocked. Then every month, the money will be debited from the credit card on a given date. You must pay the credit card bill before the due date to avoid any late payment charges. Alternatively, you must note the EMI date if you have opted for debit card EMIs. Then you must use the Piramal Finance personal loan. You must deposit the amount in your account monthly. This must be done at least three days before the EMI is due. Useful Tips Here are some useful tips to keep in mind when you buy the best air conditioners on EMI: Always opt for an EMI that you can easily repay. This means selecting a suitable loan term, interest rate, and loan amount. Do not borrow more than what you need. Make sure there is enough balance in your bank account where the EMI will hit. Any EMI bounce will attract penal charges and will also lower your credit score. You must select the product from a reputed retailer. Do not be tempted by unrealistic offers and promotions. Do not spend money on stuff you do not need. A loan is a loan. It comes with an interest cost. [B-02] When it comes to buying the best air conditioners on EMI, Piramal Finance offers you the best deals. High-value loans of up to Rs. 10 lakhs have interest rates starting from 12.99% per annum. This makes it the best personal loan provider in India. If you have any doubts, then you may contact their experts. They are always ready to give you the best offers. They also have many articles and blogs to help you learn more about personal loans.
08-11-2023
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Home Loan

Top Advantages of Taking a Home Loan

For most people, owning a home is a major accomplishment and the fulfillment of a long-held goal. If you own your home, you can design it to meet your needs and preferences. However, constructing your ideal home might be expensive. For that purpose, you can apply for loan aid and use a home loan to boost your budget. Continue reading to find out more about what a housing loan is and how it can help you buy the home of your dreams. [B-01] What is a Home loan? A home loan is a secured loan that is received for the purpose of buying a property by pledging the collateral as security. Housing loans enable high-value financing with affordable rates of interest and substantial durations. EMIs are utilized to repay these loans. The borrower receives ownership of the property immediately after completion. A type of financial resource offered by banks and other financial institutions is a home mortgage. These banks and other financial institutions will assist you in raising your budget so that you can buy a house with the loan amount provided. If you meet the requirements for a specific home loan tenure, you may apply for one. You must repay the loan amount you took out over the agreed-upon time, with interest calculated at the predetermined rate. The home loan is repaid in equal monthly payments, just like any other loan. Most banks today provide home loans that enable you to build a home from the ground up in addition to purchasing pre-built properties. You can also use home loans for remodeling or repair projects. Financial institutions will cover up to 75–90% of the value of the home, and you will be obligated to make an initial deposit (down payment) exactly equivalent to the remaining amount. With house loans, it’s simpler than ever to finance your own home. What Advantages do Housing Loans Offer? Despite the considerable sum and more extended repayment period, your home loan does come with several advantages. The perks of taking out a home loan are highlighted below. Feeling of achievementApart from the sentimental value, purchasing a home is one of the largest financial investments you may undertake in your lifetime. The majority of us invest a significant amount of money in our homes, making them the most important part of our financial portfolio. A minimal rate of interestThe decision to purchase a home is generally made over a period of 10 years, and there may be multiple cycles of rising and falling interest rates. Consequently, you may be sure that you will benefit from declining rates at some point during the cycle.Actively managing your home debts is the smartest approach to minimizing borrowing costs. That’s not as difficult as it may appear. Various uses:You are free to apply for a home loan to buy any kind of property. For instance, you may use the loan money to acquire a plot of land, build a new home on land you already have, or buy a brand-new, used, or even vacant property. Also, with money obtained through a home loan, you can renovate or rebuild your property. Dynamic repayment termYour home loan can be reimbursed over intervals of up to 30 years. Longer terms lead to smaller, more economical Equated Monthly Instalments (EMIs). Due to their flexibility, home loans are a very appealing option. Different types of home loansYou can select between fixed and adjustable interest rates for home loans. If you choose a fixed-interest loan, your EMI won’t change during the loan. In comparison, when you choose a home loan with a floating interest rate, your EMI is affected by the current interest rates in the real estate market. Your variable rate home loan EMI may drop significantly if there is little demand for housing loans. The Next Big Thing: Home Loans and Tax Benefits Home loans include several important benefits, including tax savings. You are qualified for tax savings on principal repayment of up to INR 1,50,000 under Section 80C of the Income Tax Act of 1961. You might deduct up to INR 2 lakh in tax from the amount of your interest on your mortgage that goes toward repayment under Section 24. Under Section 80EEA, the new homeowners are entitled to a taxable advantage of up to INR 1.5 lakh. The home loan had to be approved between March 31, 2019, and April 1, 2022. The first step is to complete an application and submit the required documents. After that, you must wait for verification and obtain the sanctioned letter. When you receive the letter, sign it, pay the security fees, and wait for a technical inspection of your property. After the property verification is complete, you sign the final agreement with the lender or bank and then sit tight for the loan to be reflected in your bank account. [B-02] Bottom Line It can be tough to select the house loan provider that would be best for you when there are so many of them. At Piramal Finance, we put a lot of effort into giving our customers the best options to make buying a home easier. Check out the different plans that facilitate your choice between construction loans, renovation loans, home extension loans, home loan balance transfers, and so many more advantages. We recognize the value of home ownership and provide home loans that can enable the construction of your dream residence.
08-11-2023
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Home Loan

Here are 9 types of home loan you can avail in India

With a home loan, you can purchase the home of your dreams. The interest rates are much lower than other loans, making it a viable option for many individuals. But to make the most of a home loan, finding a reliable funding partner is critical. Choose the option that works best for you to acquire the amount you need. It’s to your advantage to be aware of these options and the ensuing interest rates. Read on to learn more about the many types of home loans available in India and how to choose the best one. [B-01] Nine different types of home loans in India Home loan for land purchase You may be able to receive a bank loan to pay for the land on which you intend to construct a home. You may be eligible for home loan benefits after the construction is completed. Most lenders will lend up to 85% of the land’s worth when the loan application is submitted. As a result, all borrowers must put down 10-15% of the land’s worth. Loan to purchase a home People looking to purchase a new house may get a home loan from a bank or NBFC. Before you apply for a home loan, you should decide if you qualify for one and whether you can afford the EMIs. Loan for the construction of a house Home-construction loans are available to persons who wish to build a home on land they own or share with others. In this scenario, the amount that a lender is ready to provide as a home loan depends on estimates of how much money would be spent for the construction. Home improvement or home renovation home loan Homeowners who wish to renovate their property but need more funds might get a home loan. Fixing up an old home, repainting the walls, installing new light fixtures, and so on are all examples of potential remodelling tasks. The type of home loan is structured as follows: You will provide the lender with an estimate of the cost of the work. To validate the estimate, the lender will request a quotation from the contractor. The contractor gets paid regularly depending on how quickly the construction project progresses. Home conversion loan People who currently have a loan but wish to sell their present home and acquire a new one may be eligible for a “house conversion loan.” Borrowers may use this housing financing to refinance their existing types of home loans into a loan secured by the house they intend to purchase. They are not required to repay the amount or find another lender. This home loan option has a higher interest rate than the average. Mortgages and Non-Resident home loan This home loan is designed for persons who reside outside India yet wish to purchase a property there. In India, there are several house loans, each with its application procedure and list of necessary papers. However, the structure of this mortgage loan is fairly similar to that of other loans. Bridge Loan A “bridge loan” is a short-term loan accessible to homeowners who wish to purchase a new house but must sell their present one. You may get a loan and use the proceeds to make a down payment on a new house before the sale of your present one is completed. These types of loans have very high-interest rates and are only available for up to two years. Mortgage Balance loan You may request that any outstanding amount be transferred to another bank or NBFC. When borrowers discover a better top-up facility and interest rate with another lender, they often transfer the remainder of their mortgage to that institution. Apply for types of home loans when you have their full knowledge. PMAY (Pradhan Mantri Awas Yojana) The Pradhan Mantri Awas Yojana was launched in 2015 to provide a home for everyone. The Credit Linked Subsidy Scheme (CLSS) was established as part of this initiative to provide borrowers with a discount on mortgages and other home loans for house renovations. Those who take out a mortgage loan under this CLSS scheme may be eligible for an interest discount of up to Rs. 2.67 lakh. Consider a few things before applying for a home loan Nowadays, getting a house loan from a bank or NBFC is simple. Getting this loan is rather simple if you have all the vital papers. Because home loan often entails a large sum of money and a longer loan tenure, lenders will look at every aspect of the borrower. However, as the borrower, you must be cautious about your capacity to repay the loan. You must meet the rules before applying for a home loan To check whether you qualify for a loan, use one of the numerous online home loan eligibility calculators. You may use these calculators to see how much you can borrow. Knowing this figure ahead of time allows you to arrange your finances better. Your maximum loan amount will be calculated automatically based on the information you provide about your income, spending habits, where you reside, and other factors. Examine the market’s many booths and traders: Remember that you would have to pay for items other than the EMIs. So consider what you can do about it. Interest rates and the amount of time it takes to repay a loan are related. A reduced interest rate and a shorter repayment time are offered to promote early payment. However, if you choose to repay the loan slowly, the lender will charge a higher interest rate for all types of home loans. If you want to keep your total financing costs as low as possible, choose a loan tenure that is as short as possible. [B-02] Summing up People who wish to borrow money in India should do their homework since there are several home loan options. This will allow them to choose the one that best matches their budget. Before making a final decision on the best types of home loans, you should look at the various interest rates and EMI payment options. For the best home loan deals, get in touch with Piramal Finance. They also offer many articles and blogs to help improve your finance skills.
08-11-2023
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