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Business Loan

Top 5 Reasons to Refinance your Business Loan

What is Refinancing? Refinancing a loan means replacing your loan with another. You may have an existing loan with a high interest rate. But with the new loan, everything is revised. The payment dates, interest rates, and conditions are different from the current loan. Business financing comes with additional charges. For example, there can be processing charges, administration charges, and so on. But the benefits of refinancing your business loan are way higher. Today, many businesses choose to refinance their loans. One of the most common reasons to do so is to get a low interest rate. In some cases, refinancing a business loan gives you a short loan tenure. When you are planning to refinance your business loan, do not only look at the interest rates. But look at the different terms and conditions of the plan. The benefit of refinancing is that it gives you extra cash to invest in the business. Whether you are a small or large business owner, refinancing is for you. Once you decide to refinance, the next steps are simple. [B-01] Benefits of Refinancing a Business Loan Choosing to refinance your business loan can be better than ever. Stop sticking to your lender and payment terms. Let us stay on top of the industry game. Here are 5 reasons why refinancing your business loan is beneficial. 1. Great interest rates Many business owners choose to refinance loans. And the top reason is to get an affordable interest rate. This allows you to save money. Also, you can use the money to reinvest in your business. What better way to make a great deal of a business, isn’t it? So, if you are looking for cheap interest rates, refinance your business loan. 2. Saves money Getting a good interest rate means saving tons of money. When your repayments slow down, you can keep money in the bank. This increases the cash flow. Would you not like some extra money lying around in your account? Refinancing a business loan offers you peace of mind. 3. Get flexible loan terms Refinancing your business loan gives you access to new loan terms. Keep an eye out for new online lenders. They offer flexible loan terms that can help your business. Get your hands on the best refinancing options for loans. 4. Get a shorter loan tenure Changes in economic conditions can cause business owners to choose a shorter loan tenure. Refinancing a business loan gives you such options. For example, a high cash flow during the festive season is one. Owners wish to clear off their debts in such events. 5. Pay debts faster If you have a business loan with a long tenure, it means high interest rates. If you choose to refinance your loans, you get a low-interest rate. In addition, you can opt for a shorter tenure. So, you will not have to pay huge interest. Also, you will become debt free soon! What to Know Before Refinancing a Business Loan? There are several benefits to refinancing your loans. But you should know some things about it. Below, we will list the important ones. • Know that your present lender accepts refinancing: You cannot choose to refinance your loan unless your present lender agrees. Some lenders do not allow refinancing options. So, before you start the process, know this beforehand. • Know the terms of your current loan: To know if refinancing will be beneficial, you must know the terms of the present loan. Compare both to see what advantages you will receive. • Know the processing fee: When you choose to refinance, you will get a processing fee. This is a new loan that will have extra charges. If you still make a profit after clearing the charges, refinancing is a good choice for you. Business financing: What should you consider? If you wish to refinance your business loan, here is something you should consider. Below are three ways to start the process. Step 1: First and foremost, check if refinancing will benefit your business. Be aware of your long-term goals. If it sounds reasonable, go ahead with it. Step 2: Once you decide, do your research. Talk to your current lender and other potential lenders. Prepare a pitch to present your business to the lender. Step 3: Now that you have your new lender and services, apply for the new loan. To know more about the process, visit the Piramal Finance website. [B-02] The bottom line Are you a small business owner? Do you find it difficult to repay your loans? Are you looking for better repayment options? Then refinancing your business loans is the best way out. It is a great option to ease the loan burden. Do your research and find the best way to refinance your business. Today, many banks give business loans. Also, you can find online services that offer the same. To get more information, visit the Piramal Finance website. They have educational blogs to help you understand the process.
08-11-2023
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Home Loan

Top 5 Benefits of Taking a Joint Home Loan from Piramal Finance

The dream of owning a house is held by millions throughout the country. Buying a house can be a life goal for many people. However, the complications with housing loans are high. A housing loan is a lump sum credited by banks to a borrower. This housing loan enables them to purchase a house. The money is to be returned to creditors within a fixed tenure. The home loan usually covers 70% to 90% of the property’s current value. There are certain benefits to home loans that make them different from others. The tax benefits, longer tenure, and lower interest rates are some of its additional features. Hence, home loans can pave the way to owning your dream house. What Are Joint Home Loans? You can choose from a variety of different types of housing loans. A joint home loan is a mortgage that is taken out with a co-borrower and repaid with equal financial obligation. Co-applicants are often members of your immediate family. Family members, including your spouse, parents, siblings, and children, are eligible to co-apply for a joint home loan. There can be a maximum of six co-applicants. The co-applicant may be a salaried professional or self-employed. Obtaining a larger or better property with the help of a joint home loan is beneficial. Moreover, it lowers the overall cost of the home. This is due to the increased tax benefits. Eligibility for a Joint Home Loan The lender must have a guarantee that the loan will be repaid within the loan term. You must meet the lender’s requirements to be eligible for the loan. When establishing your eligibility for a home loan, banks take into account your capacity to make EMI payments. The eligibility of your joint home loan is influenced by the following variables: Credit score Present age Employment status Income Work history Applying for Joint Home Loans at Piramal Finance To apply for joint home loan online at Piramal Finance, you must follow these steps: Begin by filling out our online application form with your personal, co-applicant, and income details. Once submitted, your application will be reviewed for verification. Our executive will contact you to complete the KYC process, assess your eligibility, review your credit profile, and conduct a property inspection. If all criteria are met, your joint home loan will be approved, and you will receive a sanction letter. Piramal Finance’s Joint Home Loan Benefits Piramal Finance offers the best possible rates and features. These will make the journey to your dream house easier. Here are the benefits you can get on a joint home loan from Piramal Finance: All-Inclusive Loans Piramal Finance offers the finest home loan packages for both salaried and self-employed people. A salaried employee as young as 21 years old can opt for a home loan. Individuals working at private companies, government institutions, MNCs, partnership firms, NGOs, and others are eligible for housing loans. Self-employed individuals must be between the ages of 23 and 70 to apply for joint home loans. Easy Procedures All you need to do is complete a simple application form and provide the required paperwork to apply for a joint home loan. Piramal Finance’s hassle-free process and smooth experience make it all worth it. Each co-applicant must submit a separate application and present their supporting documentation. This includes a copy of their PAN card, evidence of income, proof of address, documentation of the property, bank statements, and other paperwork as required. Attractive Interest Rates A joint home loan is a long-term commitment. So, you must be cautious and wise when choosing one. Piramal Finance provides attractive interest rates and flexible payment options. The rate of interest for every slab starts at 10.50% per annum. There are two types of interest rates: Fixed interest rates: the loan interest rates remain fixed. Floating interest rates: the interest rates are variable, and there is a risk of an increase in rates. Affordable EMIs EMIs are a way to repay your loan in an affordable manner. Being aware of your housing loan terms will enable you to set manageable EMIs and save money. The longer your tenure, the lower the EMI will be, and vice versa. However, you may end up paying extra during this period. So be cautious when choosing your tenure. With Piramal Finance’s affordable EMI costs, you can manage your monthly expenses properly and continue to repay your loan. For example, a joint home loan of Rs. 10 lakhs for 10 years at a 10.5% interest rate will yield an EMI of Rs. 13,493. Flexibility in Home Loan Payments Piramal Finance can develop a housing loan repayment plan that will meet your needs. This is possible in a variety of ways. You will be assisted in choosing a plan that best meets your financial needs and repayment abilities. This will be done with a flexible repayment plan. It will reduce the burden of the EMI and the likelihood of default. You may be able to borrow more due to the flexible payment options, as the EMI payments will become more manageable. [B-02] Conclusion Home loans in India can prove to be very helpful when you are planning to purchase a home. The lower interest rates, longer tenure, and tax deductions of housing loans make them suitable for a lot of people. However, if your monthly income is not sufficient, your loan eligibility will be affected. Opting for a joint home loan can distribute the burden of making regular payments. In addition to that, your eligibility and chances of getting a home loan will also increase. This will make getting your dream home easier.
08-11-2023
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Other

Top 5 Destinations for Real Estate Investment in India

As per a Reserve Bank of India report, 77% of Indian households invest in real estate to create assets. This asset class provides several advantages, including strong potential for growth, high rates of return on investment, safety, and income stability. As a result, real estate is a popular investment choice for millions of people looking to build wealth and have a reliable income. You can easily expand your portfolio by investing in real estate. You can also fight inflation by making real estate investments. According to experts, investing in real estate for the long term, besides debt funds, mutual funds, and stocks, is a good decision. While many real estate investment options are available, choosing the best city to invest in is always the most difficult decision. So don’t worry if you’re having trouble figuring it out. We are here to help you. This article will discuss the best cities for real estate investment in 2022. [B-01] Top 5 Cities to Consider For Real Estate Investment Bangalore Bangalore is quickly becoming a popular location for real estate investment. Karnataka, as India’s capital, has significantly benefited from India’s IT boom. As a result, the city is home to many IT/ITES and MNCs, earning the title “India’s Silicon Valley.” Bangalore has become one of the top housing investment places because of its green spaces, pleasant weather, vibrant nightlife, and cosmopolitan culture. Over the last few years, Bangalore has seen a big rise in the rental and capital costs of business park facilities. Indira Nagar, Hennur, Yelahanka, Narasapura, and Whitefield are the most popular areas for real estate investors in Bangalore. Pune Despite its rapid growth, Pune has kept its reputation as a safe residential area. Pune is best known for its technology, industries, and extensive connectivity. Did you know Pune is now the only city responsible for 13% of the state’s GDP? Real estate sales increased by 75% in 2021 and are expected to grow exponentially in 2022. It also has good rental income and returns on real estate investment. People investing in areas such as Hinjewadi, Kharadi, and others are expected to benefit the most in the coming years. Navi Mumbai and Thane If you want to own cozy two- and three-BHK flats while living in Mumbai, you should consider Navi Mumbai and Thane. Navi Mumbai and Thane are tier 2 cities well-known for their large, reasonably priced real estate projects. Moreover, the areas are well-developed and have good public facilities like hospitals, schools, and recreation areas. Thus, you can expect a fantastic return on your real estate investment in a short period of time. Hyderabad Hyderabad is a city with a thriving IT industry, similar to Bangalore. Commercial real estate has increased as a result of the booming IT industry. Like all the other cities on this list, Hyderabad is known for its excellent infrastructure and public services. As a result, it is among the best locations in India to invest in real estate. The areas to consider for real estate investments are Gachibowli, Manikonda, Miyapur, and Kukatpally. Mumbai If you consider investing in real estate, Mumbai continues to be everyone’s favorite. Given that it has one of the world’s highest population growth rates, it is a good investment. The most elite areas in Mumbai are Bandra, South Mumbai, Worli, Juhu, and Andheri. Unfortunately, these areas are the most expensive in the city. It demands you to put down anywhere between Rs. 70 lakhs and Rs. 1 crore as a down payment. In spite of this, if you invest in one of these upscale areas of Mumbai, you can get a great return on your money in a few years. How Can You Do Real Estate Investing? There are multiple ways to invest in real estate. They are: You can first buy a property with capital. Start by setting up a fund on your own or with others in your network. Assume a similar approach to finding and purchasing a residence. You can rent the property instead and take in rental income from the tenants. You can also put your money into a real estate investment trust. These are publicly traded corporations that own and manage real estate. As a result, shares can be purchased and sold just like any other stock. This is ideal if you have a small amount of capital to invest in an investment property. You can also invest in online real estate platforms. Most of these platforms are only available to accredited investors. They connect property owners and operators with investors planning to invest in real estate deals. If you have the time and the skills to fix up a property, you can even purchase, renovate, and flip it for a profit. If you already own spare homes or accessory dwelling units (ADUs), short-term rentals are an excellent way to make a little extra money. You have a lot of control over who gets the keys when renting out short-term rental properties overnight or during the week. You might also get more substantial returns compared to a typical residential lease. [B-02] Wrapping Up You can easily profit by investing in other investment options, including recurring deposits, FDs, and mutual funds. But think about investing in real estate projects if you want to develop an asset. It is cost-effective and flexible. You can build on the land, sell off a portion of it and keep the rest for yourself, or sell back the entire property for a profit. Real estate investments usually do not incur any extra maintenance charges. So, what are you waiting for? Make investments in real estate projects and stay happy. You can visit Piramal Finance and explore their products and services for more details.
08-11-2023
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Other

Top 5 Investment Options for Retired People in India

Retirement is called the “golden age” because it is considered the beginning of a new life. Once you’ve done all your hard work, you are ready to reap the benefits. The choice is to use the hard-earned money you’ve saved over the years as you see fit. One thing retired people worry most about is their dried-up income source. What will happen once your savings are gone? It will not. Here we have brought to you some of the best investment options you can use to make a steady income after you retire. The Indian government has introduced many retirement investment options. Now seniors don’t have to keep looking for ways to make money or worry about inflation, living longer, or the rising cost of health care. These investment options give senior citizens several benefits and options for investing. With them, you can keep your financial freedom as a retired senior citizen and live the life you always wished for. This blog discusses the top 5 retirement investment options that can guarantee you a steady stream of income after retirement. [B-01] Senior Citizen Fixed Deposits For many people in India, fixed deposits have long remained one of the most popular retirement investment options. Since the amount of interest paid out can be set monthly, quarterly, semi-annually, or annually, it is also a safe bet for the age of the country. The plan is for those who are 60 years of age or older. Eligibility Fixed Deposits for Senior Citizens are open to all citizens over 60, including NRIs. Some banks and financial institutions allow those over 55 to apply for this investment option if they have chosen to retire early voluntarily. What Can You Invest? Seniors can open a fixed deposit at their preferred bank for as little as Rs. 5,000 (if they do it online) or Rs. 10,000 (if using a bank’s branch physically). The amount for this retirement investment option varies from bank to bank, but it never exceeds Rs. 2 crore. The term can range from 180 days to 1, 3, or 5 years. National Pension Plan Anyone who works in the public or private sector can join this program. They might want to put money into a pension account to use its benefits when they retire. The plan lets you withdraw a set amount after you retire. The balance is paid out as a pension each month. Eligibility Before, only government workers could use the program, but now, any Indian citizen can. What Can You Invest? It depends entirely on your accumulated pension and what you withdraw. Senior Citizen Savings Scheme The Government of India introduced this as one of the best investment options for retired seniors in India in August 2004. It is an instrument of debt and bears no risk. Eligibility It is only for people over 60 years old. Also, only Indian citizens are eligible, not NRIs or Hindu Undivided Families. Those who opt for voluntary retirement or superannuation at the age of 55 or if they are retired defense personnel aged 50 and above can also apply. What Can You Invest? The minimum amount you can invest in this retirement investment option is Rs. 1,000, while the upper limit is capped at Rs. 15 lakh. You can invest individually or jointly. The payout is quarterly on the first date. Post Office Monthly Income Scheme The Post Office Monthly Income Scheme is yet another risk-free way for seniors to put their money to work with much less risk. This program is under the purview of the Ministry of Finance and ensures that senior citizens get a set interest rate every month. That’s why this program is well-liked by retired seniors. Eligibility This program differs from the others discussed in this post because it is not just for seniors. Anyone who is at least ten years old can choose this program. The application process is also easy to understand. You can take care of this at a post office near you. What Can You Invest? It is also pretty popular in rural areas. For the Post Office Monthly Income Scheme, you only need Rs 1,500 to open an account. The most you can invest is Rs. 4.5 lakh. Mutual Funds Although the stock market is not everyone’s cup of tea, mutual funds have increasingly gained popularity for their ease of use and lower risk. You can invest in mutual funds by yourself, or even better, use the services of a fund manager to manage this investment option better. You can invest a certain amount monthly or make a lump-sum one-time investment. Eligibility Anyone is eligible. There is no bar to age or income. What Can You Invest? Monthly investments in some Mutual Funds start as low as Rs. 100. Ask your fund manager about how much you can invest in mutual funds. [B-02] Conclusion Retirement is a time to relax, but it can also cause worry, especially if you lose a steady source of income. The retirement investment options described in this article can help older people enjoy this time without worrying about money. One of the best things about these investment options is that they give you a fixed and guaranteed return for as long as the program lasts. Senior citizens can now pursue all their goals after retirement without having to worry. Before you invest, you should look over the details of each plan. You can find out more about each of these plans online. Piramal Finance offers some of the best investment options for retired people. Visit our website to explore more investment options and financial ideas!
08-11-2023
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Home Loan

Top 6 Reasons Why You Should Opt for Mortgage Loans in India

Needless to say, life can be unpredictable at times. During a time of crisis, having a property against which you can obtain a loan can prove to be very helpful. You can leverage your immovable assets, like a shop or house, to take out a mortgage loan. You can further use it for your immediate financial requirements. Not clear about the concept of a loan against property? So, before we proceed further, let us understand mortgage loans. [B-01] What is a mortgage loan? A mortgage loan is a kind of financial assistance for the loan taken against a property that you legally own. This property or fixed asset can either be your home, your shop, or any of your land. It should be an immovable asset. These loans are offered by either banking or non-banking finance companies. The loan is offered to you as a principal loan by the lender, who charges you interest for that particular amount payable in monthly installments. One of the most significant advantages of applying for a mortgage loan is its ease of repayment. Monthly installments can be used to repay the loan. The rate of interest is also usually on the lower end. However, your property or an immovable asset stays in the possession of the lender until the loan amount is paid back in full along with the interest. The lender of the property has the legal right to claim the property if the borrower of the loan doesn’t pay it back. In such a case, the lender can seize it and sell it off to cover their damages. Top 6 Reasons to Opt for a Mortgage Loan in India A person can take out a mortgage loan for several reasons. Here are the top 6 reasons why people should opt for mortgage loans in India. 1) Mortgage Loans Come with Lower Interest Rates A loan against property is taken while keeping a fixed asset, like a house or commercial property, as collateral. The interest rate is usually lower when compared to other loans, such as personal loans. Mortgage loan interest rates typically range between 12% and 15%. 2) Lower to No Prepayment Charges Lenders such as banking institutions don’t levy any kind of prepayment charges for loans against property. This is one major reason people opt for a mortgage loan. 3) Mortgage Loan Is Easy To Get & Has Longer Tenure As a mortgage loan is a secured loan, you can easily get it through banks. The biggest advantage of having a property loan is that it is available for a longer tenure. The tenure can go up to 15 years. That’s more than a decade, and it is a good enough time to repay it properly. On the other hand, other types of loans, such as personal loans, only go up to 7 years. This is far less than a loan against property. 4) Mortgage Loans Come with Lower EMIs Another practical reason to opt for a mortgage loan is the lower EMIs. The longer you have to repay your loan against property, the lower your EMI will be. People tend to choose mortgage loans because they generally cannot afford to pay higher EMIs. 5) Mortgage Loans Improve Your Overall Credit Rating A mortgage loan, like any other loan, allows people to build a good credit score. A good credit score improves and lowers your future cost of borrowing. However, the credit rating could also be negatively affected if the loan is not paid back in full. In such a case, your overall ability to obtain any type of loan will be greatly reduced. 6) You Get to Enjoy Tax Benefits With a loan against property, you get to enjoy tax benefits as well. However, in order to claim deductions, you must be able to demonstrate that the mortgage loan was used for business expenses or to purchase residential property. Different Types of Interest Rates on a Mortgage Loan While paying the mortgage, you can opt for two types of interest rates. Fixed and floating interest rates. First, let us understand what these interest rates are. Fixed interest rate As the name suggests, the fixed interest rate remains constant for the whole loan tenure. The changes in the market do not affect the interest rate. This is why many people prefer fixed interest rates. It helps the borrower keep away from any kind of financial risk while giving them the freedom to pay back the loan amount in monthly installments. Floating interest rate The floating interest rate keeps changing as per the repo rate and market fluctuations. As the name suggests, the floating rate changes periodically. It is directly impacted by the fluctuations happening in the markets. However, many people prefer to opt for this rate of interest as many times the variable declines owing to market conditions. In such a case, the borrowers also end up paying a lesser interest amount. You can choose the type of interest rate according to your preference. [B-02] Conclusion If leveraged the right way, a mortgage loan can prove quite beneficial for anyone who needs funds. There can be any number of reasons for people to take out a mortgage loan, from funding a wedding to funding a business. And opting for a loan against property can help you resolve all these issues. To know more about other such topics, visit the Primal Finance website.
08-11-2023
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Credit Score

Top 10 Reasons for Loan Rejection with a Good Cibil Score

A good Cibil score is demanded in the market, thanks to reputable credit information providers. Understanding the value of these various ratings and how they affect your trust as a borrower is vital. Based on your data, the assessors of your ratings examine various factors. Then, if you’ve applied for a loan, there may be an individual basis for evaluating your score. This bias is the result of your rating study earlier. Risk managers are responsible for securing a bank’s debt to protect it from bad debt. In doing so, experts may consider aspects not included in the overall review. This may result in your request being rejected, even if you’re just slightly below the cutoff. By studying the key elements, let us look at ways to ensure loan approval. Consider the following scenario: You have worked hard to improve your credit score. You are convinced that banks will quickly approve your loan form and provide inexpensive rates. But your form has been turned down. Doesn’t it seem perplexing? After all, you’ve known for years that the CIBIL score significantly impacts the lender’s choice to give you a loan. [B-01] What Might Have Gone Wrong? Knowing that the CIBIL score is not the sole factor banks or lenders check before accepting you for a loan is crucial. Other variables come into play throughout the loan procedure. Let’s discuss some reasons. Top 10 Reasons For Loan Rejection Here are the top 10 issues that might block loan approval. Read through all of the reasons carefully; if any of them hold, rectify them before asking for another loan. 1. Job insecurity Lenders will be far more confident in your solvency and approve your loan application if they realize you have a secure job with a continuous revenue stream. Lenders, on either hand, may reject you as a client if they discover that you often change employment and have an unsteady income. Keep in mind that lenders prefer candidates who can repay the borrowed funds. As a result, many businesses seek to avoid people with uncertain employment. 2. Unsuitable loan form The favorable data on your loan form can cause an increase in your reputation. Make sure you go over your form carefully and fill it out completely. Your loan application may be denied if you fail to produce a copy of the needed papers, such as your pay stub or identification evidence. Please keep in mind that lenders constantly verify each paper you supply, and any discrepancy might decrease your chances of obtaining a loan. 3. Comments on CIBIL reports The comments in the CIBIL report are yet another cause a loan form is declined. Paying EMIs after the deadline, requesting a lower rate, etc., are instances of comments. Any comment in the report demonstrates the applicant’s negligence or poor repayment habits. However, it is strongly advised not to disregard the comments in a CIBIL report since lenders will analyze the applicant’s credit history before giving a loan or credit. Individuals should attempt to resolve the remarks by speaking with creditors or paying off all debts. 4. Frequent use of credit Borrowing frequently, even with a good Cibil score, is among the causes of loan refusal. It raises concerns among banks and financial organizations about your capacity to repay. Even if you pay many loans, EMIs, and credit sums on time, lenders still question your credit reliance and consider you a high-risk debtor. Lenders will also be cautious about granting you a new loan amount since it’s normal to feel you would get overloaded with a new credit amount, resulting in missed or delayed credit payback. 5. You owe much too much money If you apply for the loan, the lender will look at your credit record and see if you have any open loan accounts. Despite a strong credit score and making your EMIs or card payments on time, the bank may assume you have a lot of debt and lack the discretionary funds to pay off your obligations in a liquidity crisis. 6. Your income may be insufficient Insufficient income is also among the reasons for loan rejection. Personal loans have income requirements set by lenders. Your loan will be denied if your income does not meet the income requirements set by the bank. There is also the debt-to-income ratio, which must meet the lender’s requirement. Only then will your loan be accepted. 7. You have missed a loan payment As a good Cibil score is appreciated, some lenders may reject your application if you have any payment failures, even if they occurred long ago and you have a strong track record since then. 8. Secured loan to unsecured loan ratio These loans are those obtained against assets or from a guarantor (housing loans, vehicle loans, etc.), while unsecured loans are those made without security. A favorable ratio would have more secured loans than unsecured loans. 9. Many inquiries The CIBIL identifies you as a “frequent inquirer” if you apply for multiple loans or credit cards from various lenders. Even if you’ve got a good Cibil score, a lender might reject your loan application entirely. 10. The co-applicant has a bad CIBIL score If you borrow money from another person, you should first check their CIBIL record. If one of the co-applicants has a low CIBIL score, the loan application will most likely be denied. [B-02] Conclusion Banks have tight loan rules, policies, and laws regulating bad debts. It would be good if you were strict about your finances. Some banks also have begun to include a good Cibil score in credit cards. You should never dismiss a discounted score without thoroughly studying its reasons. If there is a disparity, it should be reported to the relevant bank right away. A credit rating of 750 is regarded as a good Cibil score and highly desirable. For more blogs on reasons for loan rejection, check out Piramal Finance and explore their products and services.
08-11-2023
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How To?

Easy Steps For How To Choose The Best Home Loan

Buying a home is no easy task. There are a lot of factors to be considered while doing so. You might have spent a lot of time weighing the pros and cons of different houses based on the location, amenities, and cost. But have you been thinking of the right home loan to finance your dream home? Home loans may make it easier to purchase your dream house. But, it is not something that you should take lightly. You can spend many years repaying your home loan. It is a long-term commitment that requires careful consideration and research. These days, many types of home loans are available. How do you know which one is ideal for you? In this article, you will learn how to choose the home loan that best suits your needs. [B-01] How To Choose The Best Home Loan For You? Let’s take a closer look at some factors that may influence your decision to choose a home loan: Lender’s Reputation You can start by checking the lender’s reputation in the market. It can always help to learn more about your lender. Are they reliable? Are they being transparent about all their charges? Are they mobile-first? How do they keep your documents safe? These are some questions that you need to find answers to before selecting a lender. You can look up the lender on the internet, or browse through their website. Maximum Amount There is a limit to the amount of money that you can borrow. Some lenders might be prudent and be willing to finance around 70-75% of the total required amount. Whereas, some lenders might be willing to finance up to 80%. This depends on your income level, repaying capacity, and the value of the property. Carefully, consider the amount of loan that you want to take. It is wise to not go beyond 40% of your net household income. Rate of Interest This might be one of the most important factors to consider when taking a home loan. Different lenders will offer different rates of interest. The rate of interest can be classified into two types- Fixed Interest Rate- Some loans may include a fixed rate of interest. With a fixed rate, your interest rate remains the same throughout the tenure of the loan. Even if your lender revises the interest rates in the future, your interest rate will remain fixed. Floating Interest Rate- Some schemes may offer a floating rate of interest. Here, the rate of interest may change according to guidelines given by the Reserve Bank of India. This means that throughout the tenure of your loan, your interest rate can get higher or lower. Pre-payment of Home Loan You should check if your lender allows prepayment of the loan. Consider the ease with which the lender allows for pre-payment. There is another factor to consider here- pre-payment charges. If you choose a floating rate of interest, you will not be required to pay any charges on the pre-payment of your home loan. The Reserve Bank of India does not allow financial institutions to levy such charges on floating rates of interest. However, if you choose a fixed rate of interest for your home loan, you might be required to forego an amount in the name of pre-payment charges. Make sure to check for the terms and conditions of pre-payment while deciding on a home loan. Processing Fee When you apply for a home loan, there are certain charges that you need to consider. One such charge is the processing charge. This is levied for processing the loan application and to cover the expenses incurred by the bank while assessing property value and checking other loan-related documents. Tenure of loan It is important to check how long the tenure of your home loan is. The longer the tenure, the lower the EMI will be. This reduces the financial burden to some extent. However, loans with a longer tenure also have a higher interest outgo. On the other hand, loans with a shorter tenure will have a higher EMI but a lower interest outgo. You should take your paying capacity into consideration while making this decision. Over-draft Account You can also opt for a home saver loan. This works like an overdraft account. In this, you can deposit your extra savings into the account linked with your home loan account. The bank will deduct money from this account while calculating your interest. Interest is only calculated on the balance amount. Due to this, you can save a fair amount of money on the overall interest. [B-02] The Bottom Line Home loans are a long-term financial responsibility. Any decision related to them should be taken after careful consideration. It can not only affect your present financial stability, but it will also have an impact on your financial standing in the future. We hope these details gave you a better understanding of the factors that should be considered before taking a home loan. If you feel unsure at any point in time, you can reach out to reliable sources like Piramal Finance and read further articles on home loans.
08-11-2023
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GST

Documents Required For GST (Goods & Services Tax) Registration

In July 2017 the tax-paying citizens of India got introduced to a new concept – the Goods and Services Tax (GST). The new tax replaced all the existing indirect taxes. These included the Central Sales Tax (CST), Service Tax, excise duties, etc. But many still wonder – What is GST? Simply put, this tax on goods and services is levied at 18% (inclusive of central taxes). Let’s say you buy goods or services from a retail store in India. The final purchase cost in this case will include a tax of 18%. To ensure that you comply with the GST regulations, learn a few essential things about it. Foremost of them are the documents required for GST. But before we discuss the documents, let’s look at who should register for the tax. Read on! [B-01] Who Should Register for GST? Anyone who engages in trade or business in India must register for GST. This includes: Individuals and businesses with an annual turnover of more than Rs 50,000 Sole proprietors with an annual turnover of Rs 60,000 or more. Additionally, certain businesses that import or export goods worth more than Rs 50,000 per annum must also register for GST. While the rules allow exceptions, most businesses should register for GST regardless of their size. With accurate registration, businesses can enjoy several benefits, such as simplified tax returns and improved compliance. So, what are you waiting for? Start the registration process today! Main Documents Required for GST Registration The documents required for GST registration will vary depending on the type of business you are registering for. For instance, suppose you want to register for a company. In this case, you must provide the following documents: Proof of your company’s legal status and ownership Information about the goods and services you will be selling. You must also file a return and pay applicable taxes/fees. Make sure you have all the necessary documents before beginning the process. Here is a list of the documents you require: PAN Card of the Business or Applicant If you are an individual applicant, submit your PAN card with the application form. If your business is a company, then submit your Annual Return Form (Form 993) and GST Registration Certificate (Form GSTR-1). In addition, provide proof of identity and address. All the required documents should be original, and copies are not allowed. Identity, Address Proof and Photographs When registering for GST, carry proof of identity and address with your photograph. Other documents may be required depending on the type of business you are running. For best results, save a copy of these documents in one safe place and avoid delays. Business Registration Document The business registration document is one of the most crucial documents for GST registration. There are various kinds of business documents available, each tailored to meet specific requirements; for example, an Annual Return would be necessary if you’re registered as a small or micro-enterprise. Address Proof for Place of Business If you run a business, address proof is mandatory. This can be a copy of your voter ID card, driving license, or government-issued document. In addition, you must also provide proof of identity – a copy of your passport or driver’s license. Finally, submit an invoice/purchase order for goods/services supplied/used in the past 12 months. Bank Account Proof Bank account proof is another vital document for GST registration. Remember that the business owner and the accountant/tax officer must further sign a GST registration GST Registration Documents for Partnerships and LLPs Partnership and LLP entities must register for GST if they have more than ten partners or 50% ownership. The application form must contain the name of the entity, its registered office address, and the contact details of the person who will file for GST returns. Other crucial information includes the partnership or LLP’s nature of business. The business must submit the documents to the relevant tax authority within 30 days after creating or amending them. GST Registration Documents for Companies Starting a business can be a daunting task. But it doesn’t have to be – with a bit of preparation; everything will fall into place. That’s why you must register for GST as soon as you start trading. The registration process is easy and free; all you need are the required documents. Once registered, your company can begin filing your taxes online with the GST department. Make sure to track your filings – if any discrepancies exist, contact the GST department directly. In a nutshell, registering for GST is the first step on the long road to starting a successful business. So go ahead and get started! [B-02] Wrapping Up Now that you know what documents are required for GST registration, it’s time to start. Make sure to have all the required documents handy before registering. If you need clarification about how to go for GST registration, reach out to professionals. Experts at Piramal Finance will help you understand the intricacies of GST registration. Being professionals in the field, they can assist you to proceed with the registration.
08-11-2023
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Lifestyle

Easy EMI for Hair Transplant and Cosmetic Surgery in India

Cosmetic surgeries are becoming increasingly popular in India. As per the International Society of Aesthetic Plastic Surgery, in 2020, India saw the 10th highest number of cosmetic procedures globally. Similarly, Indians are also increasingly opting for hair transplants. But these procedures are costly for an average Indian. The cost of cosmetic procedures can range from ₹1,500 to ₹3 lacs. The cost is affected by the type of procedure, additional hospital charges, and any complications faced during the surgery. The cost of a hair transplant depends on how many grafts are used. One graft can have from one to three hair follicles. So, the price of the surgery can range from ₹60,000 to ₹1.5 lacs (without tax). There are also extra costs, like fees for the consultation, medicines, and post-operative care. These procedures are believed to have permanent effects, making them worth the price. So, if you are considering one or both of these procedures, a personal loan is an excellent option. [B-01] Loan for Hair Transplant and Cosmetic Surgery Most Indians cannot afford to get plastic surgery because these costs are not covered by insurance. Medical insurance only pays for treatments that save a person’s life or help a body part to work again. So, insurance does not pay for these surgeries unless they are considered reconstructive. To meet your expenses, you can consider a personal loan for a hair transplant or cosmetic surgery. What Is a Personal Loan? Personal loans are unsecured loans given by banks and NBFCs. Unsecured loans do not require you to put up any asset as security to get the loan. The use of the personal loan amount is not restricted by the lender. You can use the loan money for anything, ranging from debt consolidation to paying for a luxury trip. Since these are unsecured loans, you do not lose an asset for defaulting. But there are other consequences. When you fail to repay the loan, your credit score goes down, making it hard for you to get loans or credit cards in the future. Finally, you can only get personal loans if the EMI remains below 40%–50% of your monthly income. Types of Interest Rates On Personal Loans You can get a personal loan with either a fixed or a variable interest rate. For a fixed interest rate, the monthly payments will remain the same throughout the loan term. For a loan with a variable rate, the EMIs can change. So, you might have to pay different amounts each month. The fixed rate of interest is usually higher when compared to the variable interest rate. You can use an online EMI calculator to figure out how much your EMIs will be. This personal loan EMI calculator can also help you find out the overall cost of your loan. Benefits of Taking Out a Personal Loan The main benefits of getting a personal loan for a hair transplant or cosmetic surgery are Tailored to Your Needs Banks do not monitor the use of personal loans. So, you can use the loan amount for anything. They are perfect for unplanned expenses or a temporary financial crisis. You can pay for tuition, medical bills, house renovations, and other expenses. With a personal loan for a hair transplant or cosmetic surgery, you can pay for the surgeries without having to wait for your savings to catch up to the expenses, which could take years. High Loan Amount The minimum loan amount set by most lenders is ₹30,000. Some lenders may approve loans for a lower amount. This can also go up to ₹10 lacs. The maximum value depends on your salary, profession, and other factors. You can apply for the loan amount based on your need and repayment capacity. Flexible Repayment Time Personal loans range from a term of 1 to 5 years. This allows you to repay the amount with much flexibility. Selecting a loan tenure as per your comfort helps you plan your finances better. Easy to Avail You can apply for personal loans digitally. It only takes about 10 minutes to apply. In contrast, secure loans involve time-consuming processes. No Collateral Needed You can get personal loans without any collateral. You just need to submit your documents and income proof for approval. If you need a higher amount than the one you are approved for, you can also go for a co-applicant. Quick Approval and Disbursal The approval process can be completed within a week. It depends on the lender and how fast they process your documents. The processing time for personal loans is also little. The loan amount is disbursed within 24-48 hours of being sanctioned. Builds Credit Score Personal loans also help in building your credit score. When you pay the EMI on time and regularly, you build a positive score. This will help you in future when you need other credit facilities. High Acceptability Personal loans are available for both salaried and self-employed. Personal loans are approved for most people with a steady source of income and a stable credit record. Affordable Interest Rate The interest rate for personal loans can vary from 11.99% to 36%. It is a loan with the most flexible interest rates, which is a benefit for all applicants. Eligibility for a Personal Loan The criteria for personal loan eligibility varies between lenders. Generally, the following factors are important: Age Anyone aged 21-60 years is eligible for a personal loan. Income You need a regular income source, with a minimum monthly income of ₹20,000. Occupation You can be a salaried employee for public or private firms or be self-employed. Work Experience You should have worked in your current workplace for a minimum of 6 months. Self-employed people should also show proof of stable work. Credit Score A credit score above 750 is preferred by lenders. Documents You only require to submit your ID proof, address proof, salary slips, and bank statements. Some lenders may require additional documents. [B-02] Conclusion Cosmetic surgeries are becoming increasingly popular in India. Due to its high cost, you might hold off on getting the look of your dreams. But you do not have to wait any longer. By taking out a personal loan for a hair transplant and other cosmetic surgeries, you can keep your savings intact and still pay for expensive surgery. For quick and easy personal loans, try Piramal Finance. Get personal loans with zero prepayment and foreclosure charges, with a group of experts helping you through the process. You can also check out their other products and services to meet your financial needs.
08-11-2023
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