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Home Loan

Understand the Vital Clauses in Your Home Loan Agreement

A home loan contract is a legally binding contract. It binds both the client and the bank to its terms. Once a debtor and a bank have signed the agreement, they must follow it. Once you have signed, it is difficult to back out of a home loan arrangement. As a result, it’s always a good idea to take time and understand the home loan agreement. Legal issues may be difficult for a novice to comprehend. However, they are necessary to make an informed decision regarding housing loan options. Thus, borrowers should be aware of the 10 key clauses in a home loan contract. [B-01] What is a Housing Loan? A housing loan, also known as a home loan, is an amount of money loaned from a lender or bank to buy a house. Home loans have a variable or fixed rate of interest as well as repayment periods. The estate is mortgaged to the creditor as security until the debt is repaid. The bank or other lenders will keep the deed or title to the property until the loan is repaid in full, including interest. 10 Clauses in a Home Loan Agreement Here are the 10 clauses of a housing loan agreement you should be aware of: 1. Prepayment or Foreclosure Charges A prepayment clause reflects the amount of the loan that needs to be paid in addition to the EMI. Borrowers should look at this provision if there is a budget that includes prepayment. Banks impose no prepayment or foreclosure fees on home loans with variable interest rates. If a loaner has a fixed-rate loan, the bank may levy a fee based on the rate specified in the agreement. This clause might help in figuring out the best payback arrangement. 2. Default Clause When a borrower fails to repay the EMI on time, the bank usually considers them a defaulter. But there are other ways for a bank to think that a borrower is behind on their payments. These conditions include the borrower’s death or divorce in the case of a combined home loan borrowed by the couple. The default clause spells out the circumstances and penalties of being a defaulter, which might occur if EMIs are not paid on schedule or if the borrower is engaged in any illegal activities. 3. Amendment Clause An amendment provision allows the terms of the contract to be amended in the event of trouble repaying the loan. These modifications are virtually always to the buyer’s detriment. Getting written consent before changing agreements is usually a good idea. A housing loan cannot be amended once both parties have agreed upon it. To alter, both sides must mutually agree on an amendment. A one-sided change to a loan contract is an act of bad faith and renders the arrangement null and void. Identify and avoid clauses in the agreement that allow the bank to change the terms. 4. Security Clause The bank will make a housing loan up to a particular proportion of the property’s worth. The loan value is also based on the borrower’s income, credit rating, age, and ability to repay. The lender may insert a condition in the agreement stating that if the valuation of the collateral asset declines during the loan term, leading to a rise in the loan-to-value (LTV) ratio, the lender may require the borrower to deposit the money required to reestablish the original LTV ratio. If the worth of the property decreases, the debtor may be required to pay an extra security deposit against the current home loan balance. This provision should be carefully read since it may significantly affect the debtor’s repayments. 5. Interest Rate Clause This provision allows the lender to adjust the interest rate depending on any changes in the RBI’s marginal cost of funds-based lending rate (MCLR). Ensure that the rate of interest is appropriately secured. The interest reset clause specifies the terms and frequency of interest rate changes. 6. Disbursement Clause The loan payment may not always be sent directly to the debtor but may instead be made through the builder. This clause establishes the terms for the home loan distribution. 7. Third-Party Clause A third-party clause allows the loan to be transferred to another party without the debtor’s consent. This can happen if they default on the debt, but it may also happen arbitrarily. 8. Force Majeure With this type of provision, debtors may begin with a fixed-interest rate loan. Still, the interest rate may be subject to alteration in unusual situations. However, debtors might be able to evade it if they are careful. 9. Notification Clause This part of some agreements says that the borrower must tell the lender when they get a promotion or raise in pay, and it also says what the borrower must do in that case. 10. Other Balances Clause It specifies that any debtor’s payment will be deducted from other balances. This includes charges for late payments or transaction fees. The total sum remaining will be applied to the EMI payment. Points to Consider Before Taking a Housing Loan Below are some points to consider before applying for a home loan: Make sure to understand the type of home loan interest rate being given. In contrast to a fixed interest rate, which remains constant during the term, a variable interest rate might change. The tenure of your housing loan is important since it determines the EMI amount due each month on the deadline. Knowing the actual duration will allow the debtor to correctly allocate their money. Selecting a home loan with a straightforward application process and few documents is advantageous. Ideally, a home loan that permits online processing and speedy disbursements should be chosen. [B-02] The Bottom Line Before actually signing a home loan contract, you should thoroughly read and understand its terms. Remember that once the deal is signed, there is no turning back. For more such blogs, head to the Piramal Finance website to better understand all finance-related topics.
08-11-2023
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What Are Shares & Types of Shares?

Shares are a type of security representing a corporation’s ownership interest. There are different types of shares, and each has its own rights and privileges, which you can buy and sell in the share market. This blog post will explore the different types of shares and what they mean for shareholders. We’ll also look at the benefits and drawbacks of owning shares in a company. Read on. [B-01] What are shares? Shares, also known as equities, refer to the ownership certificates of a company. They represent a claim on the company’s assets and earnings. Shares are bought and sold in stock markets. The price of a share is determined by supply and demand for that particular stock. The stock price will go up if there is more demand than supply. If there is more supply than demand, the price will go down. Types of shares There are two types of shares: common stock and preferred stock. Common stock represents the residual ownership that shareholders have in a company after debts and liabilities have been paid. Preferred stock, on the other hand, is a type of stock that gives shareholders preferential treatment in terms of dividends and asset liquidation. Preferred shareholders do not have voting rights but may have some say in major corporate decisions. For example, preferred shareholders may be able to vote on the election of directors or changes to the company’s charter. Common shares are more likely to be traded on public exchanges, while preferred shares are often privately held. Public companies usually have both common and preferred shares outstanding, while private companies generally just have common shares. Both common and preferred shares give the holder a portion of the ownership in a company, but the rights and privileges associated with each type of share are different. Understanding the difference between common and preferred shares is important before investing in either type of security. How do stock markets work? The stock market is a collection of buyers and sellers. When you buy stock, you become a partial owner of the company that issued it. You can sell that stock at any time, hopefully for a profit. Companies issue stocks to raise money to grow and expand their businesses. By selling their stocks, companies can get the cash they need to invest in new products, hire new employees, etc. Investors buy stocks with the hope that they will go up in value so that they can sell them at a later date for a profit. Of course, stock prices can also go down, resulting in a loss for the investor. The stock market is where investors go to buy and sell stocks. It’s important to remember that the stock market is not a physical place but a collection of markets where stocks and other securities are traded. You’re dealing with a broker when you buy or sell a stock. A broker is a person or firm that buys and sells securities on behalf of investors. When you open an account with a broker, you give that broker permission to buy and sell securities on your behalf. What are the benefits of owning shares? Shareholders have a say in how the company is run. They may be entitled to a share of the company’s profits. They may receive special discounts or other perks from the company. They can sell their shares if they wish to do so. There are also some risks associated with owning shares, such as: Shareholders’ value can go up and down, so shareholders could lose money. If the company goes bankrupt, shareholders may not get all their money back. How to buy and sell shares? There are two main ways to buy and sell shares: through a broker or directly on the stock market. If you use a broker, they will charge you a commission for each trade. The commission size will depend on the broker and the type of trade you want to make. For example, if you’re buying shares of a listed company, you’ll usually have to pay a commission of 0.5% of the value of the shares. If you’re selling shares, you may also have to pay a ‘stamp duty’ tax of 0.5% on the value of the shares. The other way to buy and sell shares is directly on the stock market without a broker. The main advantage of this is that you don’t have to pay any commissions or stamp duty taxes. If you’re thinking of buying or selling shares, it’s important to get advice from a financial advisor first. They’ll be able to help you understand the risks involved and make sure you’re doing it in a way that’s right for you. Things to consider before buying shares When you’re buying shares, you need to consider a few key things first. 1. What is your investment goal? Are you looking to make a quick profit, or are you planning to hold the shares long-term? 2. What is your risk tolerance? Are you comfortable with a higher-risk investment, or do you prefer a more stable option? 3. What is the financial health of the company you’re considering investing in? You can research this by looking at the company’s financial statements and other public companies in higher-risk 4. What are the current market conditions? Is it a buyers’ market or a sellers’ market? This will influence how easy it is to buy and sell shares, as well as the price you can expect to receive. 5. What are the fees associated with buying and selling shares? Sure, you’re aware of all the costs involved, so there are no surprises down the road. You’ll be in a much better position to make a sound investment decision by taking the time to answer these questions. [B-02] Conclusion When entering the share market you need to have a fox’s mind. Invest your money in the right places and you can double it but if you invest wrong you can lose it all. Invest your hard-earned money wisely. You can also have a word with our advisors. Piramal Finance is a great platform for all your financial needs. Do take the time to check it out!
08-11-2023
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Other

Ultimate Guide on Business Funding Options

For any business, the ability to raise money is a major concern. One of the most common ways to do so is by taking out loans. There are various factors that determine the interest rate on a business loan. These include the type of lender, nature of the business, credit score, market trends, and the number of loans required. These loans can be renewed after a set period if the company can repay the money within the predetermined time frame. Small business loans range from short-term to long-term funding. A list of small business loan options is provided below. [B-01] Why is it Difficult for Small Firms to Get a Business Loan? There are several reasons why business funding is difficult for small companies. Although banks wish to lend to small businesses, outdated borrowing procedures have made business loans unfavorable for small enterprises. Most banks will not offer a business loan to startups because they require a five-year track record of a healthy business before lending. Traditional Options for Business Loans There are several reasons why small business owners might look into different business funding options. Here are three of the most prevalent options: Usually, the approval process for traditional bank loans takes weeks. On the other hand, a certain alternative business loan can deliver funding in as little as a few days. Applicants with credit scores below the specified limit vary among loan providers. As a result, small businesses with a poor or no credit score will almost certainly be turned down by banking institutions. Traditional loans have more requirements than all small business owners can fulfill. In such circumstances, alternatives to small business loans can be helpful. Therefore, MSMEs choose alternative sources for business funding. The six different alternative options for small business funding are described below. Funding Alternatives to a Business Loan Below is a list of funding alternatives for small business loans: Government SchemesA scheme known as the Pradhan Mantri Mudra Yojana provides loans to small and medium-sized businesses. These business loans are provided by RRBs, cooperative banks, commercial banks, MFIs, NBFCs, and other financial institutions. In this framework, loans are divided into three groups called Shishu, Kishore, and Tarun, each of which corresponds to a different stage in the growth of a company. Kishore and Tarun stage loans range from INR 50,000 to 5 lakhs and INR 5 lakh to 10 lakhs, respectively, while Shishu stage loans start at INR 50,000. These loans don’t require any security and can be used to purchase an automobile or a factory, raise operational capital, or buy machinery. Bootstrapping a New BusinessBootstrapping, often known as “self-funding,” is a fantastic way to get capital for a startup, especially if you are just getting started. Typically, first-time entrepreneurs have difficulty obtaining funding due to a low credit score. You can use your own money to invest or ask friends and family for assistance. This will be straightforward since there are fewer requirements and formalities, as well as lower raising costs. The majority of your loved ones and friends are open to discussing an interest rate with you.Due to its benefits, self-financing or bootstrapping should be taken into account as a first funding alternative. Once you have your own money, you are firmly tied to the business world. Investors will view this as a plus in the future. This is only acceptable, though, if your basic needs are minimal. Business Loan Working CapitalSmall businesses use these loans to meet their short-term needs for liquid liquidity. When daily operations require a large amount of cash, a working capital loan can be quite helpful. Depending on the firm’s credit profile, firm capital is frequently provided for a duration of six months to a year at interest rates that range from 12 percent to 16 percent. Term Loan Options for a Business LoanWhen investors are interested in a company’s offer, they take out term loans to cover their capital expenses. Small business financing is based on a company’s credit history and has a predetermined duration and lower interest rate. These are frequently offered unsecured, although they can also be secured by collateral. They may have a fixed or variable interest rate and last for a long period of time, such as 10 to 20 years. Cloud Funding Options for Business LoansThe idea of crowdsourcing is fundamentally similar to mutual funds. This choice contains numerous investors, each of whom makes a predefined financial contribution to your objective, business idea, profit-making targets, and strategy. You only need a group of enthusiastic supporters for your business idea.Crowdfunding is becoming more popular since it makes sure that other skilled market players agree with your proposal. Venture CapitalistVenture capitalists are a safe option for large wagers because they provide actively managed funds looking for startup companies with a high possibility of success. The expertise and supervision that come with venture capital investments are their greatest features. Venture capitalists (VCs) frequently buy shares before selling them when the business is purchased or goes public. Typically, venture capitalists look for companies with a strong team and enough traction. If you choose venture capital funding, you must be prepared to follow their strict rules and take their advice. [B-02] Final Takeaway Alternative business loan options could help you avoid time-consuming delays and rejections when trying to raise funds for your business. Having a solid business plan to support your firm and increase your chances of receiving cash is crucial, regardless of your funding strategy. You may always seek the advice of professionals like Piramal Finance if you need financial assistance. There, you can find more blogs and articles related to loans and business funding.
08-11-2023
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Business Loan

Top Pros and Cons You Need to Know About Online Business Loan

Online business loans are an ideal option for entrepreneurs who want to cover a wide variety of business expenses without applying in person. The process of applying for loans has undergone significant change in recent years. This is due to the advent of the digital revolution after the government introduced “Digital India.” The use of online platforms has increased even more since e-KYC and UPI started actively pushing online operations. Business loan applications have become more accessible and quick. This is because of digital online platforms. The majority of banks and NBFCs have implemented e-KYC. This has made it easier for borrowers to apply on websites and apps using digital devices, including cellphones, laptops, PCs, and tablets. An online business loan is the best option for you if you need a company loan but don’t want to go through the hassle of visiting bank offices, filling out time-consuming paperwork, and waiting weeks for the loan to be approved. Here, you can find out more about online business loans and their pros and cons. [B-01] What is the definition of an online business loan? An online business loan can be obtained through websites or web-based applications, as the name suggests. Online business loans can be used for a variety of reasons. This includes starting a new business, growing an existing firm, and renovating an office. This form of loan may be accessed from practically anywhere in the world where the internet is available. This is one of its most distinctive characteristics. Types of online business loans Finance for equipment This sort of company financing is dependent on collateral. Among other things, you can purchase tools and office supplies, including computers and dump trucks. Throughout the loan’s term, the lender keeps equipment authorization to themselves. Terms of the loan Term loans operate like conventional bank loans. Banks and NBFCs lend the money. The borrower must repay the loan in monthly payments over the loan’s set term. Business credit line You are free to use any amount, however many times, up to the credit limit set by the lender. The form of spending is not monitored. Only the amount that has been spent is subject to interest. The entire eligible line of credit is not subject to interest. Invoice financing Lenders disburse a certain portion of the invoice. The borrower repays it with a fee within a set period. Online Business Loans: The Pros Universal connectivity No matter where you are, you can log in from your phone, fill out an application, get instant approval, and have the money sent to your account. Rapid application It should take a few minutes to complete your online business loan application request if your connection and bandwidth are solid. All banks and NBFCs have a separate IT cell. This helps to make the online loan application process quicker and safer. Several options Online platforms have provided borrowers with many options when it comes to obtaining entrepreneur loans. The options available to them include banks, credit unions, NBFCs, government programs, etc. Free of collateral For most online business loans, you don’t have to put up any collateral or security to get the money you need. Flexible loan requirements for businesses When it comes to internet business loans, lenders take a liberal approach. Sometimes they will even overlook poor credit scores and give you the necessary financing if they are satisfied with your company strategy, break-even analysis, and prospects. Online business loans with pre-approval Banks and other financial institutions frequently offer pre-approved business loans to regular clients to sell and market their financial services. If you meet the requirements, you will be given the pre-approved business loan after responding to inquiries. Pre-approved business loans only require the bare minimum in terms of documentation and verification. This is because you are already a client. Quick payment Apply for the instant approval method of some of the top banks. The business loan amount can be granted and credited to your account in as little as a few minutes to a few days. This depends on the lender, your profile, and the eligibility requirements. The advent of e-KYC and web services powered by AI and ML has made instant approval conceivable. Online Business Loans: The Cons Cybersecurity risks When registering online for a business loan, borrowers give their personal and financial information as well as business papers, certificates, and other important documents. Loyalty discounts are hard to find Brick-and-mortar lenders are known to give loyalty incentives to consumers who have other services with them, such as checking and savings accounts. Lenders who only provide online business loans rarely give loyalty discounts. Lack of a personal relationship Cybersecurity is a major worry when applying for a business loan online. The majority of lenders employ blockchain to safeguard your data with multiple layers of protection. You develop a connection with the loan manager when you go to a bank or other financial institution’s department to apply for a business loan. This does not happen online. Sometimes having a good connection with the other party makes it easier to negotiate a favorable loan agreement. This is another challenge when communicating digitally. [B-02] Competition between traditional and online media People in India still lack digital literacy. They are hesitant to use the internet for everything. They still choose to go to actual bank locations, fill out paper loan applications, and deliver the necessary paperwork. Most Indians do not favor online media as their first option. Online business loans are a fantastic way to fund your company’s needs more quickly and securely. Make careful comparisons between the business loans being given by various financial organizations. Then secure the funding you require right now to grow your company. They are a quick and simple way to finance almost any business expense. But before you do, weigh your choices to determine which is best for your specific circumstance.
08-11-2023
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Home Loan

Complete Guide – Criteria For Obtaining Loan Against Property In 2022

There might be times in your life when you will face a financial crunch. For example, you may need cash for business growth, your children’s higher studies, medical fees, or marriage. It is not always possible to pay for these expenses with credit cards. In such cases, loans against property can come in handy. The application process for this loan is quite simple, with basic conditions and fewer documents. Before applying for a loan against property, you must fully understand the process. [B-01] What Is A Loan Against Property? A loan against property, as the name says, is a loan in which you use your property as collateral. It might be your home, a plot, or an office. When you need money for personal reasons, obtaining a loan against your property can be very beneficial. You can take out a loan for a larger sum for a longer length of time. This will provide convenience when it comes to meeting all of your needs. What Documents Are Needed For a Loan Against Property? The documents required for a loan against property are listed below: Latest salary slips for salaried people Bank account statements for the last 3 months PAN Card Aadhar Card Address Proof Property Papers IT returns for salaried people What Are The Eligibility Requirements For A Loan Against Property? You must meet certain qualifying requirements if you want to take out a loan by keeping your property with the bank. The eligibility for a loan against property varies from lender to lender and may not be the same for everyone. However, some things remain the same across institutions: You should be a citizen of India. You must be between the age of 28 and 58. You should be employed in the public or private sector. If you are self-employed, you should be able to provide proof of income. What Is The Interest Rate On a Loan Against Property? As the paperwork differs for the various banks and lenders, so do the interest rates. However, the average interest rate on loans against property is between 9.8% and 16.5% each year. It also depends on the CIBIL scores at the time of the loan application. You can get a lowered interest rate if you have good credit, and vice versa. What Is A Loan Against A Property Eligibility Calculator? With a loan against property calculator, you can check whether you are eligible for a loan against the property. This calculator will help you know your eligibility status in various cities in India. To give you an idea, your bank or lender will look at your property value and how you will repay the loan. It will also check your total assets and liabilities, age, qualification, number of dependents, and your spouse’s income. Based on this information, your bank or the lender will decide if your application can be approved or not. How Do You Repay a Loan Against Property? Repaying a loan against property is similar to repaying a home loan. Your bank or lender will calculate the principal and interest amounts and your monthly EMIs. These EMIs can be paid on the same day each month and are automatically taken out from your bank account. The EMIs begin the moment the loan is transferred to you. What Are The Features And Benefits Of A Loan Against Property? The following are some of the features and benefits of taking out a loan by keeping your property with the bank: The loan is given at a lower interest rate. The repayment period is quite relaxed. The loan amount also varies depending on whether you live in a metro, urban, or semi-urban area. You also get an option to deposit extra money and save on interest. It is a very good way of increasing property value. Many banks also provide balance transfer services to help you change banks easily. How Can You Apply For A Loan Against Your Home? Applying for a loan against property is easy and simple. The most important thing is to double-check that all of your paperwork is correct. The bank or lender will have no trouble approving your loan if your documentation is in order. To apply for the loan, follow these steps: Fill out the loan application form completely and carefully. Include passport-size photos. Provide all documents requested by the bank or lender. To begin the application process, submit the forms and papers. What Factors Should You Consider Before Applying For A Loan Against Property? Keep the following points in mind if you want your loan to be approved: Property should be free of disputes Always ensure that the property on which you intend to take the loan does not have any pending disputes. The loan may be rejected otherwise. The Loan amount must be manageable You are the best person to decide whether or not you can pay the EMIs. So, before you apply for a loan against property, carefully check your finances to see if you can repay the bank on time. Choose an appropriate loan tenure When applying for a loan, use the loan against the property calculator to check how much you can afford to pay back in a specific amount of time. If you believe that amount is more, increase the tenure and lower the EMIs. Check the value of your home It is vital to examine the value of your home before applying for a loan. The majority of banks offer 60% of the property’s worth as a loan. Appraising the property beforehand will help you determine whether the loan is suitable for you or not. [B-02] Final Thoughts Borrowing a loan is a decision that demands a lot of thought. Always weigh your choices before making a decision. It would help if you also compared the interest rates and benefits of various banks and lenders. To learn more about loans against property, visit Piramal Finance and read similar blogs.
08-11-2023
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Personal Loan

Best Personal Loan Interest Rate in Ganpati Festival at Piramal Finance

Ganesh Utsav is among the most popular Indian holidays. It means a fresh start. Many families use this moment of the year to set new goals and work toward them. Indians all over the country often start planning big events during this time. The events include starting a new business, going abroad, or paying for a wedding. The easiest approach to cover these costs is with a simple personal loan at a fair personal loan interest rate. Even if you require money right away or shortly, it still works. Personal loans make it easy to get money. They are easy to get. They have flexible payment plans. They can be done online. You can make your plans even more affordable by getting personal loans with low-interest rates. Read on to find out why it’s a good idea to get a personal loan right away this Ganesh Chaturthi. [B-01] Best Personal Loan Interest Rate And Other Features: In this Ganpati festival Get Cash Without Risking Assets A personal loan does not require you to use any assets as collateral. During this Ganpati festival, lenders are willing to lend much money without collateral. This simplifies your life. It also allows you to take care of everything without stress. Remember that lenders will look at your income, employment, and CIBIL score before giving you a loan. Make sure you fulfil the requirements to get a personal loan with a low-interest rate. Obtain a Valuable Sanction For Any Expense Costs for things like college for your child, medical care, or a wedding can be very high. Because of this, reputable lenders in India give out loans of approx Rs.20-25 lakh. This amount is usually enough to cover any big-ticket costs you might have. Apart from that, lenders today approve instant personal loan applications in minutes. They provide the loan amount within 24 hours of approval. This makes it easy to pay for unexpected costs. Low Personal Loan Interest Rates Getting a personal loan during this Ganpati festival is a clever way to save money. You can save money on interest. This is because most lenders offer special deals on personal loans during this festival. So, you can choose loans with incredibly low-cost personal loan interest. It will ensure your total interest payment is not more than you can afford. The money you save can then be used to meet other short-term goals. Select EMIs With An Affordable Adjustable Tenor When salaried employees take out a personal loan, they get several advantages. Financial institutions usually give them a convenient amount of time to pay it back. You can choose a term length between 12 and 60 months. This gives you a lot of time to figure out how much you can pay each month. With an EMI calculator for a personal loan, you can figure out your EMIs. You can do that ahead of time and better manage your money. Easy Online Borrowing With a Pre-Approved Deal You need not stand in line at a lender’s branch or complete a lot of paperwork. You can get a personal loan online from the comfort of your own home. You can get a personal loan immediately by filling out a form online. Then send it along with a few important documents. Ask your lender for a pre-approved offer. You might get the best personal loan interest rate. They also have a lot of good things about them. These include making it easier to apply and faster to get approved. Some lenders will also let you reduce your monthly payments. You can pay back the part of your total loan that you have already used. Verify these to manage your cash flow in a better way. Things To Do Before Investing: In this Ganpati festival Invoke God Before Investing Ganesh Chaturthi is the perfect moment to start investing for your financial future if you haven’t already. With the Lord’s blessing, you can use your smartness to invest well and make money. This is because He will take care of any problems. This is the optimum moment to start. The key is to invest regularly and with a clear mind. Learn about investing You should study all investment opportunities. Gather as much knowledge as possible. Use your intelligence to build an investment strategy. It should make you economically secure in the short and long terms. You can look on the Internet, take a short course, or follow one of the many websites about investing. Borrow carefully You may manage your finances wisely, yet financial problems are inevitable. Banks and NBFCs provide short-term aid in such cases. Your child might need an unplanned study tour. During the Ganpati festival, Piramal Finance gives out personal loans so that you don’t have to use your savings or long-term assets. Financial responsibility If you have goals and a plan to reach them, you must be disciplined to follow the plan. If you need a personal loan, consider how much to borrow. What EMI you can afford, EMI calculators for personal loans, who is offering the best terms, when to apply, etc. are some other vital points. If you’re disciplined, obtaining a loan is no big deal since you’ll repay it easily. Indian festivals may teach you many things. How you celebrate the festivals, how important they are to you and how methodically you get ready for Ganesh Chaturthi are all incredibly foresightful. They will help you get to the point where you can live on your own money. [B-02] Conclusion Keep your finances in good shape for this Ganpati festival. Use an instant personal loan to pay for big purchases. When done right, there’s a simple way to protect your savings. You will also reach your financial goals simultaneously. Find the best personal loan interest rate from Piramal Finance to choose the best way to borrow money. Confirm your pre-approved offer to get going. You can also use a personal loan app. This app enables you to pursue a loan. It also helps you to check all the information about your loan, make payments, and more. Visit their website to learn more about the products and services they offer.
08-11-2023
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Other

What is a Systematic Withdrawal Plan?

A systematic withdrawal plan (SWP) allows one to have a regular, anticipated cash flow from their investments. One can use this cash flow as income. The most typical retirement plan uses systematic withdrawals of such income. But investors can design and utilize systematic withdrawal plans to meet various payout requirements even before retirement. These can be from various forms of investment on the market. [B-01] Some common investment avenues for SWPs (IRAs) are: Mutual funds Annuities Brokerage accounts 401(k) plans Individual retirement accounts A typical form of systematic withdrawal plan is an annuity. It offers predetermined cash flows based on an initial contribution. Most of the time, retirees depend on SWPs to provide their retirement income. For this, one has to annuitize the assets or investments in retirement accounts. These include IRAs and 401(k) plans. Setting up an SWP requires researching how much money you’ll need in retirement. Online retirement plans benefiting from taxes, social security, and inflation may be useful. How Does a Systematic Withdrawal Plan Work? A mutual fund scheme’s SWP enables you to take a fixed sum from the investments. When an investor selects an SWP, they redeem some mutual fund units. In this way, they receive cash from their current investments. It is necessary to fulfill the distribution amount that an investor has put in. For this, selling a part of the investor-owned mutual fund units is essential. If you do not specify a timeframe for the SWP, payments through it will continue until you have units. An Example Suppose you have invested an amount of Rs 5 lakh in the fund, which has a NAV of Rs 10 per unit. Thus, you have 50,000 units in the fund. Say, you want to withdraw Rs. 5,000 per month, the fund will sell 500 units every time. Consider a scenario in which you begin the SWP with the NAV at Rs 20 on the day of withdrawal. Now, the fund will sell 250 units to provide you with the necessary Rs. 5,000. The quantity of the units will now be 49,750. Setting Up a Systematic Withdrawal Plan For systematic withdrawals to start, accounts often have the lowest balance threshold. Investors with various holdings in an account may define the liquidation percentage. This might happen with investments in Mutual fund companies Brokerage accounts Portfolios under the management of a financial advisor SWPs must abide by Internal Revenue Service (IRS) rules. At the age of 72, investors must start taking withdrawals from a stable IRA SEP IRA SIMPLE IRA Retirement plan account How to Best Use a Systematic Withdrawal Plan SWP guarantees a regular financial flow. An investor should choose SWP as soon as he makes an investment. If the investor has a sizable sum to invest for a stable withdrawal, then he can also go for an SWP. But, investors can avoid paying the 15% short-term capital gains tax. For this, they have to begin an SWP at least a year after the transaction. If one has superior financial planning, then one should include SWP after a few years (five to seven years). It is because this period aids capital appreciation. A greater amount of consistent financial flow is beneficial. Additionally, the investments made using the SIP can use SWP capability at any time. Are you saving through a SIP until retirement and don’t want to invest more? Then, you should consider quitting the SIP. Ensure that you do not completely redeem your investments. Instead, use an SWP plan to take advantage of the enormous corpus. The remaining corpus will remain invested and grow. There will be a steady monthly flow for you, like a pension. Also, you will be able to meet your demands for a longer duration. From the SWP, you can redeem extra points as necessary. Systematic Withdrawal Plan — Considerations Investors may wish to consider taxes and a systematic transfer plan when starting an SWP. Also, you’ll be subject to a tax rate when you withdraw from retirement and regular accounts. For this, you can consult a tax counselor. Withdrawals from standard accounts are subject to income tax. It is because they cause selling stocks to generate distributions. The taxation of withdrawals from retirement accounts will differ. A scheduled systematic transfer may also be possible for investors in specific circumstances. Using this as a method of organizing fund withdrawals into cash may be a wise choice. Benefits of a Systematic Withdrawal Plan Flexibility: An investor in the SWP plan can select the date, sum, and frequency of payments as per his needs. Furthermore, he can halt his SWP at any time. He can withdraw more money than the SWP allows or make more investments. Regular Income: SWP in mutual funds helps the investors. It guarantees investors a consistent return on their investments. As a result, this becomes quite simple and helpful for a person. Also, it helps to have a consistent income flow to cover current bills. Capital growth: The investor can experience capital growth over the long term. But, it can be possible when the fund return rate is higher than the SWP withdrawal rate. No TDS: TDS is not applied to the amount of SWP for domestic investors. [B-02] Conclusion Analyze what a systematic withdrawal plan, or SWP, in a mutual fund is. It will help an investor discover that it is a solid technique for having a steady income. The capital appreciation part of an SWP can also be set up as the only withdrawal. The benefits include tax-efficient returns, and gains are not subject to TDS. Piramal Finance assists you with a systematic withdrawal plan and other finance-related issues. Read more blogs to explore the products and services that Piramal Finance offers.
08-11-2023
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Home Loan

Top Home Loan Festival Offers by Piramal Finance

Do you still have a house in your dreams today? Piramal Finance, one of the most economical home loan solution providers, can help you get started on the construction of your own dream home. If high-interest rates are preventing you from moving right now, you will find more calming and affordable home loan offers during this festival. Piramal Finance offers a wide range of affordable and buyer-friendly home loan solutions to help its customers build their dream homes without any worry. You can be confident that Piramal Finance will work with you to make your dream of home ownership a reality. Our goal at Piramal Finance is to make this transition as easy and comfortable as possible. The best home loan deals are available during the holiday season for both new loans and balance transfers. Additionally, throughout the festival, salaried and self-employed people can apply for home loans and take advantage of the top home loan deals. Let’s look at Piramal Finance’s “Buyer’s Favorite” festival offers’. [B-01] Best Festival Offers for Home Loan Buyers – Piramal Finance Hassle-Free Documentation During Festive Offers: It only requires the barest amount of paperwork to further ensure a straightforward and trouble-free process for a home loan application during festival offers. Pocket-Friendly Festive Scheme: When you choose a home loan during seasonal deals, Piramal Finance gives you the option of choosing a floating or a fixed interest rate, making paying back your loan even more straightforward. You are so much closer to realizing your dream now. Open-to-All: Piramal Finance provides the greatest home loan offers to everyone throughout the festival season, whether they are salaried workers or independent contractors. Low-Interest Rates: This holiday season, Piramal Finance has created the best home loan deal. It has reduced interest rates by offering discounts (check the website) and waiving processing charges (check the website). Repayment Flexibility: There are many options available at Piramal Finance when it comes to creating a home loan structure that suits your requirements. Piramal Finance allows a lot of flexibility in the loan tenure, prepayment and foreclosure as well. Offer to Avail Benefits with Fewer Procedures: Simply complete the application form and provide the required documentation to Piramal Finance to apply for a home loan. A relationship manager will get in touch with you shortly and begin the process at your convenience. Many financial companies today claim to offer the lowest house loan rates in India. Even though many bargains could seem alluring, it’s best to avoid choosing businesses simply because they’re providing low-interest mortgages. A home loan is a long-term commitment, so you must be cautious and wise when choosing one. In the financial industry, Piramal Finance is a reputable and well-known name. Having been in this industry for a while, the company is familiar with the requirements of a borrower and provides one of the lowest loan interest rates in India. Factors to consider before applying for a home loan Before you apply for a home loan, make sure you know how much the fees will cost and how much the interest will be. It is important to understand these costs so you can calculate the overall cost of your loan and prevent yourself from selecting a high-priced loan that you will pay back over time. Here are some important costs to be aware of if you are a first-time applicant: Interest charges for late payments or failure to pay Charges for documentation EMI bounce fees Additional applicable/relevant fees Process charges Advantages of a home loan during the festive season With these loans, you may get the conveniences of your own home now for a good price without having to pay a large amount of money all at once. This makes it easier to handle any unplanned expenses. Companies like Piramal Finance also allow you to reorganize your EMIs if your investment goals change; for example, you can lengthen the repayment period and shorten the EMI if necessary. Your income, lifestyle, and financial security all genuinely improve when you reside in a safe home with improved facilities. So rather than waiting forever or taking a chance on nothing for the same, it is far better to take out a home loan and buy the home of your choice right away. Major home loan schemes by Piramal Finance 1. Piramal Self-Construction Home Loans For the building of bungalows, independent houses, row houses, etc. Up to 90% of the cost of real estate, including land, is supported. Construction can last for up to two years. 30-year maximum term, subject to retirement age. 2. Piramal Super Loans 20% greater eligibility. 10% to 15% off EMI. Land and property costs totaling up to 90% are financed. Top-ups are possible with more EMIs. Applications from both individuals and groups are accepted. Starting annual interest rates are 9%. 3. Piramal New Purchase Home Loan Suitable for usage with ready-to-move-in, under-construction, and resale property. Assistance with confirmed properties is available through advisory services. Agreements with top insurance companies to cover the loan and the property. Process turnaround time for processing is quick. Tailored programs for physicians, accountants, and other professionals. Starting annual interest rates are 9.65%. [B-02] Additionally, consider the repayment period because it directly affects the amount you pay each month (or EMI). You will have enough time to repay a significant home loan amount if your term is longer. In this manner, defaults are prevented. Part-payment and default policies on home loans should also be considered. You can prepay your loan more quickly in the future when you have extra funds. You can now apply for a home loan online here to take advantage of the discounts mentioned above. This shows that the whole process of Piramal Finance’s home application is relatively simple. Having a few required documents and meeting minimum eligibility criteria can make completing a home loan application easier.
08-11-2023
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Know More

What Are Penny Stocks?

Penny stocks are the stocks in the share market that trade for under five dollars per share and have a low market capitalization. They are usually listed on a smaller exchange and are mostly liquid; hence, they are speculative and highly risky. They belong to the category of low-priced and high-risk public companies. The potential for high yields is higher than that of a more traditional investment vehicle such as mutual funds or fixed deposits. The most common use of penny stocks is in day trading, as it’s considered an easier time frame to work with than larger margin requirements and lower transaction fees. Penny stocks also have high volatility when compared to other equities due to their smaller price ranges. One of the most significant risks associated with penny stock trading is that it can be halted at any time due to their prices being manipulated to gain a quick profit. It is important to understand that penny stocks are available for purchase for a wide variety of reasons and are therefore used as a way to attain different types of results. The hope is that the best penny stocks will be purchased through research and analysis, making the investment more valuable. [B-01] Features of Penny Stocks It is easy to recognize penny stocks in the share market. Here are some features that make them easy to understand and trade: Limited Information About Their History: Relatively new companies usually issue penny stocks, so there is limited information available about the trading of these stocks. Often, these stocks don’t have a record of returns and losses. This lack of information makes them extremely risky. Negligible Public Information: It’s not necessary for the companies issuing penny stocks to file reports with regulatory authorities. Also, professional analysts don’t cover them as well. That’s why you will not find much public information about these companies. Low Cost: This is one feature we have been talking about since the beginning of the article. With its pricing, identifying a penny stock is extremely simple. They will be the most inexpensive shares in the stock market. Advantages of Penny Stocks: Here are a few reasons why you must invest in penny stocks. 1. Low Investment Requirements: The amount of money you’ll need to invest in penny stocks tends to be lower than investing in larger-cap stocks. So, if they deliver, you get a significant profit, but if they fail, you don’t lose much. 2. Higher Yields: When looking at the industry averages for penny stocks, it is clear that they provide higher yield returns than other equities. Penny stocks also tend to provide high capital gains over the long term due to their higher yields and steady growth. 3. Easy-to-Understand: Penny stocks are generally easy to understand due to their low price per share, which makes them more accessible to everyone. In the stock market, penny stocks do not need much formal analysis to make successful trades once you have some experience with them. But if you’re new to penny stock investing, don’t forget that there should be some research into your chosen industry before sliding into the share market to make a purchase decision. 4. Funds Small Cap Companies: Penny stocks are the perfect way to invest in small-cap companies. These companies are often seen as having heightened growth potential as they’re not as large as more traditional ones and hence provide great return opportunities. Although they usually don’t hold large amounts of cash, they can be invested in other stocks, which results in an overall increase in your profit. Disadvantages of Penny Stocks: 1. Higher Risk: The risks associated with penny stock trading are very high, and it’s important to be aware of the risks and understand the chances of success before you start investing. The most notable disadvantage to penny stocks is the increased risk in comparison to other equities. Also, the downside to trading penny stocks is that there’s a higher risk of price manipulation, causing your shares to be halted. This is only sometimes the case, but it’s more common than in other markets. 2. Low Liquidity: The lower the liquidity of a stock, the harder it is to make a profitable trade with that stock. Penny stocks are often considered to have very low liquidity because there aren’t many shares outstanding compared to other equities. This means that the trade is smaller and more difficult to profit from. To make profits, traders will often purchase high volumes of stocks to increase their capital gains. The lack of a large number of shares in the share market makes it easier for traders to manipulate prices through market orders if they’re aware of significant buy or sell orders; which means that low liquidity equals a higher risk level. 3. More Fraudulent: The higher risk and lower liquidity can often result in greater opportunities for fraud. Although there are many successful penny stock investments, there is also a high amount of fraud and money manipulation involved. Traders need to be aware of this when researching penny stocks. However, there have been reports of penny stock trading being more profitable than emerging IPOs or less liquid over-the-counter stocks. [B-02] Wrapping Up Penny stocks are a good way to make fast capital and can be easily bought by individuals or traded on margin with a brokerage account. However, they must first be researched and analyzed before being purchased. It is essential to understand that penny stocks can be manipulative due to their popularity and smaller market sizes. When trading penny stocks, it’s essential to understand the risks associated with them. However, the stock market comes with many risks and rewards, and penny stocks are less risky with more rewards. You can always consult an institution like Piramal Finance for more information about penny stocks and other different forms of security and their risks.
08-11-2023
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