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PPF Interest Rates - PPF Maturity, Closing, and Withdrawal Rules

The PPF interest rate has always been a popular topic in the world of investment. It's often the first thing people want to know when considering a PPF account. Are you looking for accurate information on PPF interest rates but need help finding the correct numbers? Don't worry—we've got you covered! In today's blog, we'll dive into the current PPF interest rate and explore some key details about PPF that you will want to take advantage of. So, stay tuned as we get started. Let's begin! What is PPF? PPF, also known as the Public Provident Fund, is an exclusive investment scheme. It’s popular among investors due to its various investor-friendly features and multiple benefits. PPF is an investment scheme for the long term. It’s best for investors who believe in long-term gain and wish to earn high but stable returns. Keeping the principal investment amount safe is the primary target for people with a PPF account. In the market today, there are countless investment schemes. But there has never been a scheme that offers as safe returns as PPF. Besides, it’s also considered the best investment for people who are new to investing. Let’s talk about the PPF interest rates now. What are the current PPF interest rates? PPF interest rates aren’t fixed but are of a changing nature. But despite its nature, it doesn’t change much in the long run. Like in 2020, the PPF interest rate was bouncing between 7-8%. Talking about the interest rate, the current rate is 7.1%, compounded annually. PPF interest rates have been stable at this level since the last quarter of 2020. Its stability is what makes it risk-free. Now you might wonder, “How come the rate is so stable?” Well, PPF is backed by the Indian government, allowing it to provide 100% risk-free returns. Additionally, the PPF also falls under EEE status. This means that whatever amount you invest, the interest on your investment, and your maturity amount—all of them are free from tax. You don’t have to pay even a single penny of tax on your investments. Its tax-free features are one of the factors that attract investors to this fund. PPF Maturity, Closing, and Withdrawal Rules If you are new to PPF, understanding the PPF interest rates is the first step. The second step is learning about maturity rates and certain withdrawal rules. So let’s talk about account maturity first. A PPF account only matures after 15 years, starting from the end of the financial year when the account was opened. Investors get an advantage with the maturity date. They can extend it in blocks of five years after maturity. Now a common question asked by many beginner investors is, “Can we prematurely close our PPF account and withdraw all the money?” Yes, you can always withdraw your money from PPF before the maturity date. However, we don’t recommend you do that. But there are some exemptions, such as higher education for children, medical treatment, etc., where you can close your PPF account. But you can close it only after the compilation of five years, not before that. Learn how to make a crore with PPF. PPF is undoubtedly the best and most secure investment scheme for long-term investors. It’s not just about the tax benefits PPF offers; one can indeed make more than Rs. 1 crore with it. As you might know, the PPF interest rate that the government offers is 7.1%, which is compounded annually. Now let’s assume that this rate of return remains the same for the next 20 years. So, if your yearly deposit is 1.5 lakhs a year, it will be approximately 40 lakhs in the next 15 years. As mentioned above, investors can extend their PPF account’s maturity date by a bundle of 5 years after the completion of the 15-year maturity period. If you continue to invest 1.5 lakhs per year for another ten years, your PPF balance will reach a whopping 1 crore. So, the total number of years it took you to get to 1 crore is 25 years, with a consistent PPF rate of 7.1%. But the government tends to revise PPF interest rates every few years. Therefore, with an increased interest rate, you can reach your financial goal faster than you can imagine. Besides, PPF is the safest investment option, so you don’t have to worry about any potential risk of loss. How can you get the most out of your PPF investments? The biggest goal of every PPF investor is to try and make the most out of their investments. So, let us tell you how to do it. PPF interest rates are calculated monthly. However, it’s credited to your PPF account at the end of the fiscal year. Moreover, the amount of monthly interest is calculated for the days between the fifth and last day. So, if you want to maximise your returns, invest in PPF before or on the 5th day of every month. If you follow this approach, you will become more interested in the current month’s balance than the previous one. That’s the case with monthly investments. Now many people prefer lump-sum investments as well. This means they make all of their investments for the year at once. If you are one of them, try making your PPF deposits between April 1 and April 5 of the financial year. This will help you maximise the returns on your lump-sum PPF investments. [B-02] Conclusion PPF is a great investment option, especially for beginners. If you believe in long-term gain and want to earn via compounding income, invest in PPF. The current PPF rate is 7.1%, but it has a high chance of increasing in the future. Unlike other investment options, every time is the right time to invest in PPF. We have tried our best to share every important detail about PPF and PPF interest rates. If you want assistance with any financial-related topic, such as PPF, FD, etc., try Piramal Finance. Their team of experienced financial advisors will help you make ideal financial decisions.

08-11-2023

Which Bank Gives Highest Interest On FD

Since May 2022, when the RBI began a pattern of quarterly increases to the repo rate, banks in India have increased their interest rates on fixed deposits (FDs). Since May, the RBI has increased the repo rate by 190 bps. It’s no secret that fixed deposits are a go-to choice for many investors, especially those looking to play it safe with their money. Several financial institutions now provide a return on FDs of greater than 7%. Even though India’s retail inflation hit a five-month high of 7.4% in September 2022, many Indians may still find earning over 7% on their fixed deposits enticing. [B-01] What is a fixed deposit? A fixed deposit is a direct investment that needs a single deposit. You may put money in the bank’s core account for a predetermined time (tenure). During this time, interest will accrue on the deposit. You will receive your money back along with interest. Table of banks giving the highest rate of interest on FDs and rates The latest interest rates offered by top banks for tenures range from 7 days to 10 years as of December 2022. Name of BankFor general citizens (p.a.)For senior citizens (p.a.)IDBI Bank FD3.00% to 6.25%3.50% to 7.00%HDFC Bank FD3.00% to 6.25%3.50% to 7.10%ICICI Bank FD3.00% to 6.60%3.50% to 6.95%State Bank of India FD3.00% to 6.10%3.50% to 6.90%Kotak Mahindra Bank FD2.75% to 6.50%3.25% to 7.00%Axis Bank FD3.50% to 6.50%3.50% to 7.25%Canara Bank FD3.25% to 7.00%3.25% to 7.50%Punjab National Bank FD3.50% to 7.00%4.00% to 7.50%RBL Bank FD3.25% to 7.25%3.75% to 7.75%IDFC First Bank FD3.50% to 7.25%4.00% to 7.75%Bank of Baroda FD3.00% to 5.65%3.50% to 6.65% Different banks’ lists and their interest in FD Rates of Return on Fixed Deposits Offered by SBI The State Bank of India (SBI) is one of the country’s main public sector banks. SBI has set an increased interest rate for its employees and retirees. The interest rate will be 1% higher than the rate available to the general public. Those who are 65 or older and are residents of India will receive the staff interest rate of 1% in addition to the senior citizen interest rate of 0.5% from SBI. The interest rates will apply to both new deposits and rollovers of accounts with terms that are about to end. 2. Interest Rates on Fixed Deposits at ICICI Bank The fixed deposit earnings of elderly citizens at ICICI Bank increased by 0.5%. The ICICI Bank allows customers to choose between fixed deposits that allow withdrawals and those that do not. The interest on FD will not significantly increase if the depositor cannot access their money. There is a one-year bare minimum and a ten-year maximum on NRE deposits. 3. Axis Bank Interest Rates on Fixed Deposits Axis Bank provides online and offline fixed deposit services. The interest rates vary depending on the loan’s term and principal balance. The bank offers an interest rate of 0.65% on deposits made by seniors, which is higher than the standard rate. 4. Yes Bank FD rates On all deposit plans, Yes Bank provides excellent interest on FD. The interest rate for a term of less than one year varies from 3.25% to 5.00%. Interest on deposits with maturities of one to three years ranges from 5.75% to 6.25%. The bank offers interest of 6.25% p.a. on deposits made into FD accounts with terms greater than 3 years. On FD tenures, senior citizens are given an extra interest rate of up to 0.75%. 5. Citibank FD rates For any FD held for a shorter time than a year, interest on the FD of 1.85% to 2.75% will be paid. The maximum interest rate paid by Citibank is 3.50% per year for an investment term of 1,096 days. The annual return rate will be 3.50% between 151 and 1,095 days. Every older person will get an extra percentage of interest. 6. Punjab and Sind Bank Rates Punjab and Sind Bank offer FDs with interest rates ranging from 3.00% to 5.40%. The rate paid for deposits kept for less than a year ranges from 3.00% to 5.15%. The yearly rate of return ranges from 5.15% to 5.40% for an investing duration of one to three years. If the deposit is retained for a duration between 3 and 5 years, a rate of 5.40% p.a. on bank deposits is paid. Note: The interest in FD for older persons is high. The bank applies several interest rates on deposits exceeding Rs 1 crore and below Rs 5 crore. The RBI’s monetary policy will update the interest rate regularly. These are the main banks and their FD interest rates. Before investing your hard-earned cash in any financial asset, it is prudent to do research. How to Pick a Good Fixed Deposit The following are the considerations to make when selecting a fixed deposit: Examine the FD interest rates offered by various banks. Check the lender’s integrity by looking at the ICRA or CRISIL fixed deposit safety rating. Select a fixed deposit type: cumulative or non-cumulative. Pick a bank that provides friendly customer service and a simple FD opening process. Final Words A fixed deposit is a safe investment, but it provides returns that are less than inflation. Before applying for an FD, gather as much information as possible about the process and the banks offering the highest rates of interest on FD. All the above-mentioned information will be a big help if you search for banks giving out the highest interest rate interest on FD. For more information on the same, visit Piramal Finance. It is an Indian financial services company that is making its foray into retail lending, which includes personal loans, business loans, housing loans, and other consumer-focused finance products. [B-02] FAQs Is FD a good way to spend money? Fixed deposits are one of the best ways to put your money to work. How long does a fixed deposit have to be? You can open a fixed deposit account for at least seven days. How much is the smallest amount you can put into an FD account? Different banks have different minimum amounts. As little as Rs. 50 is possible. Can I receive interest on a fixed deposit every month? Yes, you receive interest on your fixed deposit. Can I take money out of my Tax Saver Term Deposit before it’s due? No, you can’t take money out of a tax-saving term deposit before the five years are up.

08-11-2023

How To?

How to calculate Mutual Funds returns in percentage?

A mutual fund invests in a company’s bonds, shares, or stocks. An individual can buy shares and gets a reward from company profit. The percentage of dividends rises with the share’s value. You can calculate the return percentage on your share. The mutual fund’s calculator helps in assessing the return in percentage. There are two types of mutual fund investment. Systematic investment plans (SIP) and lump sum investments are two different types. You can choose any one or go for a combination. SIP is a monthly, quarterly, and monthly mode of investment. It is more suitable for disciple investment plans. However, a lump sum long-term investment means paying the full amount in one go. You can calculate using a mutual fund calculator. You may check the mutual funds calculator usage process given below. [B-01] How does the mutual funds calculator work? Any investment in mutual funds comes with returns in percentage. It would help if you learned how to work with a mutual funds calculator. Use the calculator for return assessment if you invest in SIP, lump sum, or combination. You can put the principal investment amount and expected return in the calculator. The mutual fund’s calculator tells the amount to be paid at maturity. You can put the maturity amount to know the rate of return. You can flip one thing with another and know the desired investment information. Types of returns on mutual funds In mutual funds, there are six types of returns. Absolute, annualized, total, point-to-point, trailing, and rolling returns. Annualized and absolute are two expected returns on mutual funds. Mutual funds calculator can assess both types of return in percentage Annualized return Annualized return means earning a return amount on mutual fund investment annually. The investment growth rate is assumed to be constant. Let’s use the same example using the mutual fund’s calculator for assessing. For example, Mr. B invested Rs.1 Lakh in a long-term mutual fund in January 2017. Now the value of the investment is Rs.1.3 lakh in January 2020. So the investment return is calculated based on 3 years. The formula of absolute return is, Annualised return = (Final investment value ÷ Initial investment amount) ^ (1/number of years)-1 = [(130000 ÷ 100000) ^ (1/3) – 1] = 9.045% Hence, Mr. B’s investment has grown by 9.04% annually for 3 years. Absolute return Absolute return on mutual funds is the total change in the value of mutual funds investment. This amount is given at the redemption time. It is expressed in (%) form. For example, Mr. S invested Rs.1 Lakh in a mutual fund in January 2017. Now the value of the investment is Rs.1.3 lakh in January 2020. So the investment return is calculated based on 3 years. The formula of absolute return is, Absolute return = (Final investment value- Initial investment amount) * 100/ (initial investment amount) = (130000-100000)* 100/100000 = 30% How to calculate SIP return using a mutual funds calculator? The SIP is a monthly, quarterly, or yearly payment in mutual funds investments. So, the mutual fund’s calculator works on the holding period of each SIP. The holding period refers to the period of investment and withdrawal of a particular SIP. An individual buys the units of mutual funds based on net asset value. The net asset value varies from day to day of each month. When you redeem the investment, you get the amount of all units x net asset value of the present day. You can predict the return on investment using a mutual fund calculator. Use extended rate of return (XIRR) for overall return on investment. The XIRR is the sum of CAGRs on each SIP Investment. It would help if you used the SIP calculator for assessing, as the CAGR calculator takes extra time. It simplifies the SIP and SWP calculation. And, gives the combined value of the return percentage on investment. It is also helpful in maintaining cash flow using SIP and SWP. Let’s understand the SIP return calculation with an example. The mutual fund calculator for SIP is the best option for calculating the return percentage. Mr. A invests Rs.2000 in SIP mode for 5 months. The principal amount after 5 months is Rs 10000. But Mr. A gets a total of Rs 11000 at the withdrawal. Let’s see how? Date of SIPAmount depositedMarch 01, 2015Rs2000April 01, 2015Rs2000May 01, 2015Rs2000June 01, 2015Rs2000July 01, 2015Rs2000Final return amount at the redemption of investmentRs 11000 Formula of SIP return percentage = P [(1+i) ^ n-1] * (1+i)/i Here P stands for the principal amount (principle/investment), and I stands for the interest rate. Now you can calculate your SIP return with any amount. XIRR of SIP investment is 45.27% per annum. How to calculate lump sum investment on mutual funds? In lump sum long-term investment, you get annualized and absolute returns. The mutual fund’s calculator helps in assessment with separate formulas. The lump sum long-term investment formula calculates only less than 12 month period amount. It is always expressed in a percentage format. The formula of absolute return is given below. Here the NAV stands for the net asset or market value of each investment unit. (the current NAV – the beginning NAV) / beginning NAV x 100. Let’s assume your present NAV is 45, and the beginning NAV is 30. The absolute return will be 60% for a <12 months period. The annualized return formula, however, works best with an investment period of more than 12 months. You can use the mutual fund’s calculator for quick assessment. The formula for a simple annualized return is given below. [{1+ absolute rate of return} ^ (365 / number of days)] -1. CAGR and combined annual rate help analyze the average rate of return. You can calculate for more than 12 months. The formula is given below. [{(current NAV/ begging NAV) ^ (1/number of years)]-1} x 100. You can use the same formula for monthly return calculation. Just replace the number of years with several months. You can use the alternative formula of CAGR = (current value/initial value)1/n-1. Here N stands for the number of years. [B-02] Final Words The mutual funds calculator is a one-stop solution. You can calculate the return percentage from your home using a simple calculator. There are various formals, but they are time-consuming. You can compute any amount with a long-term mutual fund calculator. SIP or lump sum investment, either combination or separate, can all be calculated. Know your investment and choose wisely. Visit Piramal Finance for similar blogs. Also, look at the products and services that they offer.

08-11-2023

Know More

Use the RD calculator to calculate RD interest online

Recurring deposits or RD calculator online is a device which permits investors to make deposits every month. It also helps to preserve funds over time. Investors can select the duration of the payment. They can also select the lowest monthly payment that is most easy for them. RD plans are more adjustable. It is favoured by people desiring to open an account to save money. [B-01] Using An Online Rd Calculator When choosing an RD, it is crucial to understand the combination of instalments, cost of borrowing, and deposit period pick. This is the goal of the online RD calculator on this website. 3 areas should always be filled out when trying to invest in a term deposit to determine possible earnings: Monthly Deposit Amount: This is the amount that will be posted each month. Interest Rate: The interest rate set by the supplier. 3. Deposit Tenure: The time frame for making deposits. Three factors determine the RD maturity quantity. An RD calculator online adds these factors to a standard formula to compute the precise maturity amount. The online RD calculator formula is given: P*(1+R/N)(Nt) = A (Nt) The variables in this equation are: A: Amount of maturity P: monthly payments N: frequency of compounding (number of quarters); R: % interest rate t- Term This is the conventional formula for determining an RD’s maturity amount. This is true despite the amount spent or the length of time invested. Assume a person creates an RD wallet with a monthly estimated cost Of Rs. 5,000 for a year. The interest rate on this account is 8%. The deposit’s ultimate maturity amount is calculated using the following formula: A = P*(1+R/N)(Nt) (Nt) = 5000(1+.0825/4)^(412/12) = 5425.44 = 5000(1+.0825/4)^(411/12) = 5388.64 … = 5000(1+.0825/4)^(41/12) = 5034.14 The entire maturity value is calculated by adding the series, i.e., A = Rs 62,730.85. The financial return in RD for the depositor is INR 62,730.85. The depositor’s RD investment has a maturity value of INR 62,730.85. Benefits of Recurring Deposits in Investing RDs offer a guaranteed return, making them a great investment option. It also has some advantages given below: RD is a simple investment product. It is easy for brand-new investors to grasp. Investing in RDs can help instil the habit of investing. It also helps in saving regularly. RDs are used as medium, short, or long-term investment vehicles. The minimum period is 6 months and can be extended to 10 years. Some banks have an Rs. 10 lowest investment amount. RDs are fluid. People can easily withdraw funds from the account whenever they want. But the bank charges a small fee. The documents needed are simple to gather. Any resident can set up RD. They can join it with an interest-bearing account. No additional documentation is required once this is done. This is the easiest. It is also the most convenient way to save money. One can build an affluent abundance and riches. It also provides one with assurance. Key points to remember A recurring deposit is a very good choice. Mainly for people wanting to double the cash. Also, without taking on a big risk. It calls for a monetary investment over a period. But there are a few things to think about before investing in an RD scheme: The rate of interest RD account interest rates vary by bank. Interest rates on these investment products range from 3.5% to 8.5%. It is vital to keep in mind that the interest rate will change depending on the length of your investment. The interest rate on a long-term RD will be higher than a short-term investment option. Tenure of Deposit The RD investment tenure is divided into three categories. Short-term (6–8 months per year). Medium-term (12–18 months per year). And long-term (12–18 months per year). The second type of investment is a medium-term investment, which lasts 5 to 10 years. The third type of RD account is a long-term investment that lasts more than ten years. As a result, it is critical to assess your needs and select an investment tenure accordingly. The best way to maximize your investment returns is to choose a provider. The one that offers higher interest rates for the shortest amount of time. Premature Withdrawal Customers in India can withdraw their investments at any time. The interest and returns applicable in such cases are fixed by how long you have held the investment. Some financial firms also charge a fee for early withdrawals. As a result, when investing in an RD account, it is critical to select a provider that charges minimal fees for early withdrawal. [B-02] Conclusion It is an excellent investment strategy for people who do not have a large sum of money to begin a fixed deposit. But can regularly invest from their earnings. Individuals are also encouraged to develop long-term investing habits. They can do this through recurring deposits or RDs. Before deciding on an RD strategy, it is critical to compare the returns from all available options using RD calculations. An RD calculator online is useful. It allows you to compare all the available RD plans from various financial firms. This is a kind of investment done in phrases. You can invest a fixed amount every month and earn interest on it. The interest rates are locked in until the term is over. You have the option of receiving interest at a certain period. People wanting to put money into little sums should consider setting up a recurring deposit. Read on to learn more about finances at https://www.piramalfinance.com/

08-11-2023

Personal Loan

Online Education Loan Scheme For Students In India

When it comes to education, it is always regarded as an investment and not as an expense. The quality of education you get can greatly impact your future career. Hence, you must opt for the best course at the best college to pursue your higher education. Though, the rising cost of higher education might act as a roadblock. This is where the benefits of an online education loan come to the fore. Through this loan, you can pay for the cost of your higher education upfront and then repay the loan amount in EMIs. An online education loan can be the first loan you will ever take. This means you might need to add a parent or a family member as a co-applicant. It will help boost your chances of getting the required amount for the loan. There is no need to offer any security to get this loan. Read on to learn all about the online education loan scheme for students in India. [B-01] Features of Online Education Loan Listed here are some of the most crucial features of an online education loan that you must be aware of. Loan Amount: If you want to take an online education loan, you need to know the loan amount that you require. Most lenders now offer high-value loans for studies of up to Rs. 1.5 crores. The maximum loan amount that you can avail of will be based on your profile and the course fees that the college is charging. Banks and NBFCs offer online education loans for overseas colleges and universities as well. Though, you must check with the lender if the course and college you wish to apply for are acceptable to them. Some lenders might offer to pay only for college fees. Expenses like travel, boarding, lodging, and other costs must be borne by you. Loan Tenure: Loan tenure for an online education loan can vary per the lenders. Some lenders offer these loans for up to 7 years, while others offer them for up to 15 years. Most lenders will need you to pay the interest during the study period. You can start repaying the principal amount after the course completes. Some lenders may also offer you a mortarium for loan EMIs to allow you time to find a job after completing the course. You must opt for a tenure that gives you an EMI amount which you may be able to repay easily. If you do not pay the interest during the repayment holiday, the accrued amount will be added to the principal. This will result in the EMI being updated. Interest Rate: Most lenders offer education loans at a low-interest rate. The interest on this loan is linked to the repo rate from the RBI. You can get an education loan starting from as low as 10.6% per annum. Some lenders can offer you a rebate on the interest rate if you keep paying the interest cost during your studies. You may also take a personal loan to pay for your education fees. You must select such an offer where the interest is low, as this will help you keep the EMI amount under your budget. Processing Fee: The processing fee for an education loan will vary as per the lender and the loan amount. Most lenders waive this fee if the loan amount is less than Rs. 7.50 lakhs. If the loan amount is over this limit, then a processing fee of around 1% to 2% may be charged. If you are giving security to get this loan, then you will need to pay the charges for legal and technical reports. No charges are levied for mortgage creation under education loans. Eligibility: You must meet the rules and terms given by the lenders related to eligibility for an online education loan. The applicant must be an Indian national, and the course and institute you select must be a part of the list the lender gives. You will need to provide the admission offer letter given by the college. If a parent has been added as a co-applicant, then he/she must also provide all the papers like ID proof, address proof, income proof etc. You must also provide all your educational certificates to the lender. If you have gained admission after clearing an entrance test, you must also provide a copy of that result. Expenses Covered: You must ask the lender about all the costs the loan would cover. This will allow you to plan your expenses a bit better. While the details can vary across lenders, some of the common costs that an online education loan covers are: Admission fee. Costs to complete the course, such as study tours or project work. Caution deposit, building fund or refundable deposit. Examination fee, library fee, and laboratory fee. Hostel expenses and mess charges. Insurance premium for the student. Cost of books, uniforms, or other equipment. Cost of laptop if needed for the course. Travel costs such as air tickets for overseas. The tuition fee is payable to the college. [B-02] Taking an online education loan can be a good choice to go for a course of your choice. It will allow you to focus on your studies and repay the loan after you start working. You need to do a lot of research before you pick an option. Though, it is vital to note that an online education loan is still a loan, and you must make a wise decision. You must visit Piramal Finance, which offers great loans at good interest rates. They also have many articles and blogs to help you learn more about the world of finance and loans.

08-11-2023

Other

EPFO UAN Activation: How to Activate Your UAN Number Online

If you run a business with 20 or more employees, it is mandatory to register with the Employee Provident Fund Organization (EPFO). Under the Employee Provident Fund (EPF) scheme, an equal amount of contribution is made by both the employer and the employee. Every individual registered under the EPF scheme is assigned a Universal Account Number (UAN). It is a twelve-digit value that helps them manage information regarding their EPF account. If you are an employee who wants to switch jobs, the UAN will remain the same. Only member identification changes when you change jobs. You can ask your company what your UAN is. In certain cases, your salary slips also mention it. Without UAN activation, you cannot withdraw or transfer money from your Provident Fund (PF) account. [B-01] There are certain documents you should have before UAN activation. These include: UAN provided by your company Member ID provided by the employer. The member ID is the same as your PF digit. In case you don’t have a member value, request one from your employer. The member ID is an alphanumeric value that consists of a code. This code represents the state as well as regional offices. Aadhaar Card Digits PAN Card Digits Let’s learn more about the steps involved in the EPFO UAN activation process. Steps for the UAN Activation Process Online To activate UAN number online, follow the steps below: Go to the Member Interface of the Unified Portal of Employees’ Provident Fund Organisation. On the right, under the ‘Important Links’ section, you can find ‘Activate UAN’. Clicking on the link will take you to the next page. Here, you need to enter details such as your UAN/Member ID number, Aadhaar digits, your name, birth date, mobile number, and the captcha. After entering the details, go to ‘Get Authorization Pin’. The pin will be sent to your registered phone number. Click on the ‘I Agree’ checkbox to accept the terms. Then go to ‘Validate OTP and Activate UAN’ The password will be sent to the registered mobile number. You can log in now using your UAN and password. After logging in, you can choose to change your password. Documents Required to Activate UAN Number The EPFO UAN activation requires the following documents: PAN card Aadhaar card Bank account details Bank IFSC code Address Proof of identification Benefits of UAN UAN has many benefits for employees as well as employers. Some of them are: Due to UAN, sending PF funds has become hassle-free. It has made the procedure quick and increased the chances of fewer errors. You can even switch your EPF account online. Before UAN, withdrawing your PF was dependent on your employer. But, UAN has reduced this dependency. Once the KYC verification is complete, the PF amount from the old account to the new one can be sent automatically. You receive a notification on your phone for every activity in your EPF account. This has made things more secure. You can also check your account balances through UAN. UAN helps in ensuring the PF accounts of the employee are valid. How to Link Aadhaar with UAN There are three ways to link your Aadhaar card with your UAN: Using the Official EPFO Portal Log in to the Unified Portal for Employee Provident Funds Go to ‘For Employees’ followed by ‘UAN Member e-Sewa’ Enter your UAN along with the password and log in Go to ‘manage’ and then on ‘KYC’ Next, you will need to enter the details of your bank branch, Aadhaar card, and PAN. Go to ‘Save’. Your request will be displayed in KYC pending approval. Once approved by UIDAI, it will mention the employer’s name as “approved by the establishment” as well as “verified by UIDAI.” Using the UMANG App Log in to UMANG app using MPIN or OTP. Once logged in, go to the ‘All Services Tab’. Here, choose ‘EPFO’. Under the EPFO section, choose the ‘e-KYC service’ option. Then choose the ‘Aadhaar Seeding’ option. Enter your UAN, followed by the ‘Get OTP’ tab. An OTP will be sent to your mobile number. Enter your Aadhaar details. Lastly, you will receive an OTP on your registered number again, as well as an email for verification. Offline Mode To link Aadhar in offline mode, you will need to fill out the ‘Aadhaar Seeding Application’. This will require your UAN and Aadhaar digits. You will have to submit self-attested copies of UAN, PAN, and Aadhaar along with the application. This can be submitted at the EPFO office or Common Services Centers. Once the verification is done, you will get a message on your phone saying that the Aadhaar has been linked to the EPF account. [B-02] Conclusion UAN has made things easy for businesses as well as employees. All the PF accounts can be accessed on a single platform. It also helps the EPFO track all the changes being made. These facilities can be accessed online, which makes things hassle-free. Further, you can switch your PF account from one employee to another, from the comfort of your home. The steps for activating the UAN are simple. It requires minimal documentation. For more such articles, head to the Piramal Finance website. Our experts will guide you through your finance-related concerns.

08-11-2023

Stocks Markets

How Much Can a Share Price Rise or Fall in a Day?

The law of supply and demand drives short-term stock price fluctuations. Each day, billions of shares of stock are traded, and it is this trading that determines where values will settle. But what exactly is it that makes people want to buy stock in such large quantities that it drives up its price? It all comes down to how investors feel. Let’s learn about the determining factors of stock market price rise and fall. [B-01] Factors affecting stock market prices Several factors decide the rise or fall of stock market prices. Some of them are: Analysts’ predictions for the stock. How investors feel about the sector. Stock market optimism among investors. The more expectations investors have for a company’s future success, the higher the demand for the stock will be. Conversely, if investors lose faith, they may sell their shares, causing the stock price to fall. Market sentiment about an industry is another factor that can move the price of a stock up or down. For instance, the stock price of an electric vehicle manufacturer may skyrocket if investors believe strongly in the industry’s promising future. All boats can rise with a rising tide. In this case, both parties are at fault. It doesn’t matter how well individual companies perform if investors turn against an entire industry. What is a “price band”? Stock market volatility is kept under control by employing price bands. It’s the maximum allowable increase or decrease in a company’s stock price. The price range for equities might range from 2% to 20%. The stock exchange determines this range after reviewing the share’s past price behaviour. The daily price range also considers the previous day’s closing price. Supposing the previous day’s closing price for ABC company’s stock was Rs 100 and the price band was 10%, we would have the following scenario. The minimum price could be 90, and the maximum price would be 110. The maximum limit of this range will be 10% over the prior day’s close (Rs 100). Thus, Rs 110 is the highest possible range. The lower limit of the price range will also be 10% below the prior day’s closing price (Rs 100). As a result, Rs 90 is the lowest possible pricing range. For the day as a whole, Company ABC’s share price has a range of 90 to 110. The stock price is capped at this level. What causes stock prices to rise and fall? Reasons for the growth and fall of stock market prices typically include the following: Providers and Consumers There is a demand for anything when there are more potential purchasers than there are sellers, and there is an excess of sellers when there are more potential purchasers. In the stock market, certain companies’ fortunes naturally follow business cycles. For instance, the summer is the peak season for the sale of air conditioners. Therefore, investors anticipate that a market-leading AC manufacturer will report stronger earnings in the second or third quarter compared to the first. As a result, they tend to purchase these stocks before the end of the first quarter and sell them before the end of the third. However, cyclical businesses are just one subset of the stock market’s vast array of publicly traded organizations. Below are further explanations for why stock prices go up or down. News from the Company Your stock will experience the effects of company news, both positive and negative. The revelation of an earnings estimate can positively or negatively affect a company’s stock price. Another event that could cause a stock price increase is the corporation’s dividend or bonus announcement. Additionally, a product launch or merger may be well received by investors and traders, leading to increased buying activity. However, the stock price may fall if the company discloses a major management change, swindle, or product recall. Analysts Every day, major brokerage companies and so-called market pundits provide stock recommendations for free or a fee. In the stock market, novices and traders who aren’t willing to do their studies often rely on the advice of industry professionals. Institutional investors and traders will sometimes follow these suggestions to measure the general public’s opinion. Stock market prices could go up or down depending on how the recommendations are received. However, intelligent investors take these tips with a grain of salt before deciding whether to purchase or sell a company. The General Tendency The market might be in a bullish, bearish, or neutral phase at any given time. When the stock market is rising, investors are all over the place with excitement. This will occur if investors are very bullish on the economy and individual firms. You can make incredible profits in only a few days if you enter the market right before a bull run begins. The bear phase follows the bull phase’s antithesis. During this phase, investors sell their stocks whenever they can, and even businesses with strong fundamentals get beat up. It’s important to remember that this period is also a favourable time to make purchases. When markets are sideways, volatility is very low. Stocks with sideways trends do not go up or down significantly, and even seasoned investors find challenges in detecting a sideways market. [B-02] What Counts is the Big Picture Long-term investors aren’t too concerned with the daily fluctuations in stock prices caused by news events. When you have time, even short-term events like earnings surprises and analyst reports are unimportant. It’s not where a business is today that matters, but rather where it will be in five, ten, or twenty years. Long-term, a stock’s worth is proportional to the cash flow the company is expected to create. No matter what happens in the near term, investors who think a company can grow its profits may be willing to pay a greater price for its stock today. A stock price may also be affected by factors such as the market, interest rates, rising prices, the price of crude oil and gold, and the gross domestic product. The conditions of the global market also affect the prices. You can find more finance-related blogs at Piramal Finance.

08-11-2023

Know More

What is the interest rate of FD in 2022?

A fixed deposit, or FD, is an investment account. Banks and other financial institutions provide it. The investor can deposit a good amount of money in history, and they will get back a fixed interest rate depending on the tenure. The tenure can be selected from 7 days to 10 years. Generally, the interest rate of an FD account is much higher than that of a savings account. [B-01] How do interest rates work? Typically, interest rates are added monthly to the investor’s fixed deposit account. The customer can get the benefit of interest every month or on a quarterly basis. The investors can withdraw their investment once the tenure of the investment ends. The customer will also have the option to reinvest the money for another term. As per the investor, the assignment will be maintained. The interest rate of an FD can vary from bank to bank. Generally, all banks and other financial institutions offer fixed deposits. Another thing to know is that the interest rates offered by private sector banks and other private financial institutions will be higher. The public-sector banks and financial institutions will provide a slightly lower interest rate on the fixed deposit accounts. Different types of FDs There are different types of FD accounts offered by banks. The interest rates on the various types of FD accounts are slightly different. Some different types of FD accounts are- Regular FD account These are for customers aged below 60 years old. The interest rate of FD offered on these accounts is lesser than the one offered for a senior citizen FD account. Senior citizen FD accounts These are for customers above the age of 60 years old. The interest rate of FD offered in these accounts is slightly higher. The amount of interest in these FD accounts can be used by the senior citizen to handle their expenses like medical bills, etc. FD account with a monthly payout These fixed deposit accounts will pay out the built-up interest to the customer every month without any inconvenience. This FD account has the advantage of getting the interest component directly into a saving account. The investor can use this money every month and use the sum for regular expenses. FD account with a maturity payout In this kind of FD account, the interest gets collected in the customer’s account based on the deposit tenure. The interest gets compounded. Later, the customer will get the principal amount plus the interest components. By the time of the maturity of the FD account, the investor will get the principal and the interest components. Rates of interest offered by banks The interest rate of an FD keeps changing from time to time. Another thing to remember is that the interest rate mainly depends on the tenor. The government bank offers different rates of interest than the private banks. There is a margin of difference between the two of them. Most public banks will offer interest in India in 2022 ranging from 3% to a minimum of 6% or a maximum of 7%. The general tenure for public bank fixed deposit accounts can range from 7 days to 10 years. Now let’s learn about the interest rates of FDs offered by the private sector banks and financial institutions. In general, private banks offer interest rates that range from a low of 2.50% to a high of 7.20%. Private banks offer fixed deposit accounts at an average interest rate of between 3% and 7%. Sometimes, it can cross 7% just by a slight increase. The average tenure of private banks’ fixed deposit accounts is also 7 days to 10 years. But exceptions can happen in this case. In some cases, the tenure goes from 15 days to 10 years, but in other cases, it can be between 33 and 99 months. The investor needs to check out all the possibilities. The customer can compare the tenor with the interest rate of an FD offered by public and private sector banks and then decide which one they should go for. Things to consider before investing in fixed deposits Deposit limit Investors should always consider the deposit limit of the bank from where they are making their fixed deposit accounts. It refers to the maximum amount of money that a bank offers for a fixed deposit account. Banks use these amounts of money to confirm whether they will offer you a fixed deposit. Interest rates It is the most important thing to consider before investing in a fixed deposit account. The interest rates on fixed deposit accounts are different at different banks. Some might offer higher interest rates based on the rating and financial capacity. The customer should thoroughly go by the interest rates of an FD offered by the bank and tenure and then analyse them before making any decision. Tenure It is important to know about the duration of the whole process. The investor must know how long the money will remain in the bank. Most banks in India decide the interest rates of the fixed accounts based on this duration, known as the tenure. So, before investing in a fixed deposit account, the customer must keep tenure in mind. [B-02] Conclusion Now that it’s the end of the article, if the customer has a large amount of money that they want to save, opening up a fixed deposit account is the best solution to invest that amount of money. It’s safe and will provide you with a good interest rate of an FD for that amount of money. Even though it’s safe, you should still look into things like payouts, risk calculations, real interest rates, etc. One can take help from Piramal finances as they deal with personal loans and finances.

08-11-2023

Home Loan

How Much Home Loan Can I Get On 75K Salary?

Numerous factors determine the home loan amount that you can get on your salary in India. These factors include age, income, current debts, credit score, and employment history. Lenders will also consider the type of property you are looking to purchase as well as the location of the property.To know how much housing loans you can get on your salary in India, it is best to speak to a mortgage specialist. They will be able to assess your situation and provide you with an accurate estimate. Generally, the higher your income and the lower your debts, the more home loan you can get. Read on to learn more about how much a home loan you can get on a 75k salary. [B-01] How Much Home Loan Can I Get On 75k Salary? Assuming you take a home loan for the first time in India, your maximum loan eligibility will be calculated based on your income and repayment capacity. The general rule is that your monthly EMIs (Equated Monthly Installments) should not exceed 35%-40% of your monthly income.On a salary of INR 75,000 per month, you can get a home loan of up to INR 55.93 Lakh. This amount considers that banks typically finance up to 80% of the property value. So, if you are looking at a property worth INR 50 lakhs, you would need to bring in 20% as a down payment, which would come to INR 10 lakhs.Your EMI will depend on the bank’s interest rate and the housing loan’s tenure. For example, at an interest rate of 9%, your EMI for a 30-year tenure loan would be approximately INR 28,500 per month. reduce your EMI burden by choosing a longer tenure loan or opt for a variable house loan interest rate instead of a fixed rate if market rates fall during your loan repayment period. Loan Types in India Housing Loan: A housing loan is a loan to purchase a property or land. The interest rate on a housing loan is usually lower than that of a personal loan or credit card. Mortgage Loan: A mortgage loan is a secured loan against a property. The interest rate on a mortgage loan is usually lower than that of a personal loan or credit card. Home Equity Loan: A home equity loan is a secured loan against the equity in your home. The interest rate on a home equity loan is usually lower than that of a personal loan or credit card. Personal Loan: A personal loan can be used for any purpose, including purchasing a property or land. The interest rate on a personal loan is usually higher than that of a housing or mortgage loan but lower than that of a credit card. Top-up Loan: Borrowers who have previously obtained a mortgage loan from the same lender are eligible to apply for a top-up loan, an extra loan of the same kind. It is common for the house loan interest rate on top-up loans to be lower than the rate on personal or unsecured loans. How to Qualify for a Home Loan in India Assuming you’re salaried, to qualify for housing loans in India, most banks would require the following: A minimum income of Rs.25,000-30,000 per month A good credit score A stable employment history of at least 2-3 years Age between 21 and 65 years Indian residency Repayment capacity as determined by the bank’s internal criteria (Note that these are general guidelines, and each bank has specific eligibility criteria, which may differ from others.) Interest Rate on a Home Loan In India The interest rate on housing loans in India depends on numerous factors, such as the type of loan, the tenure of the loan, the LTV ratio, etc. India’s house loan interest rate starts at around 6.65% per annum. However, this can differ based on the type of home loan, the lender and other factors. Generally, the interest rate is higher for loans with shorter repayment tenure and vice versa. For instance, SBI’s house loan interest rates start at 8.55% per annum for loans up to Rs 30 lakhs with a tenure of up to 30 years. India Home Loan Down Payment Assuming you are taking a home loan for the first time in India, the following down payments would be applicable – For loans up to Rs.30 lakhs for 10 years- 7.6% of the loan amount For loans between Rs.30 lakhs to Rs.75 lakhs – 20% of the loan amount For loans above Rs.75 lakhs – 25% of the loan amount Hence, if you take housing loans of Rs.50 lakhs, your down payment would be Rs.5 lakhs (10% of the loan amount). Similarly, for a loan amount of Rs.1 crore, your down payment would be Rs.25 lakhs (25% of the loan amount). Home Loan Lenders in India: How to Choose! There are many factors to consider when choosing a lender, but some of the most important include the following:1. Interest rates: One of the most important factors when choosing a lender. Make sure to compare interest rates from multiple lenders before making your decision.2. Loan terms: Another important factor to consider is the loan term. Make sure to choose a loan term that you are comfortable with and that fits your financial needs.3. Charges: Some lenders may charge fees you are unaware of. Read the fine print and understand the fees before signing on with a lender.4. Customer service: When you are taking out a loan, you want to ensure you can get help. Choose a lender with good customer service so that you can get help when needed. [B-02] Bottom-line If you’re looking to take out a home loan in India, it’s important to know how much you can borrow. This will depend on your income and other factors. Typically, banks will lend you up to four times your annual salary. However, this is just a general guide. The actual amount you can borrow will depend on your circumstances. The lender will consider factors such as your credit history and employment status. Visit Piramal Finance, where you can find similar articles and start exploring housing loans in India with a salary of 75K. It’s always best to speak to our financial advisor before taking out a home loan with a house loan interest rate. They’ll be able to help you understand your options and find a loan that’s right for you.

08-11-2023