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Home Loan

Complete Guide On How To Choose The Best Home Renovation And Construction Loan In India

A home is much more than just a place where you sleep. A home is where you are peaceful. It signifies your accomplishments. Everyone wants to live in a gorgeous house. Beauty and comfort are as important as location and building quality. The quality and ambience of your house make an important first impression on your visitors. Make your home a reflection of your personality. You no longer need to wait until you have saved enough money to modify your property to your specifications. Instead, you can apply for a house renovation loan. You may utilise a house renovation loan to repair, or renovate your home. The major perk of a home repair loan is that it allows you to modernise your existing house and create a more inviting living era that is suited to personal tastes and styles. These loans are analogous to mortgages. A home loan enables you to buy a home, but a house construction loan allows you to renovate your present home. [B-01] What is a Home Construction Loan? A construction loan is a type of home loan. The bank pays out the money in phases as the job unfolds. To qualify for a home construction loan, you must present the lender with a precise construction timeline, building plan, and a realistic construction budget. After loan approval, the loan amount will be paid in phases based on the demand of each building stage. The lender would assess the site during the building or request a third-party engineer to come and inspect it. Features & Perks of a Construction Loan A home construction loan may benefit any person who wishes to build a house on their plot or an extra floor in their home. Lengthy service: A house building loan is offered for a long time, spanning 5 to 30 years. This implies that the borrower’s EMI load is low and the loan is cheap. Tax savings: Under Sections 80C and 24B, lines of credit, like house loans, are eligible for a tax credit on the principal and interest paid. Sections provide a tax credit of up to Rs. 2 lakh on the interest rate and Rs. 1.50 lakh on the principal. Section 80 EE permits first-time home buyers to receive an extra tax benefit of up to Rs. 50,000. Loan refinancing: You may also get a top-up loan on your current house loan. Banks examine your repayment history to assess if you qualify for a new loan to enhance your current loan. In rare cases, banks may charge processing fees for issuing a home loan top-up. Loan amount: Your income and payment criteria affect the amount of a home renovation loan you may get. Construction loans of up to 90% of the mortgage are available. To increase your eligible loan amount, you need to add a co-applicant. What Are The Various Types of Construction Loans? A debtor may choose one of 3 groups: Self-Construction Loan If you have bought or have a plot in your name and need funds to build a house, you may apply for self-construction credit. Plot + Construction Loan (P+C loan) If you do not yet have a plot and need money to buy it and build a house, a Plot + Construction loan is the ideal option. Remember that if you simply need money to buy a plot and not build a house, you must apply for a loan over property or a personal loan. Home Extension loan You may get a home extension loan if you need money to construct an extra floor or add a new space to your house. Similarly, a home repair loan may be obtained if you want to carry out major home repairs, repaint your house, or simply give your house a new look. How to Select the Finest Home Improvement and Construction Loan in India Need The first step is to choose how you will spend the loan fund. Make a list of all the activities and purchases you want to make for your home. This will help you plan your purchases properly. Eligibility After you’ve created a budget for yourself, you must look into the loan amounts open to you. You may also acquire proper interest rates based on your credit score. Options for repayment Select the payment plan and amount that best suits your needs and ability. You should choose an option that will not drain your bank account in the long term. Rates of interest Apart from your credit score, your loan size and term also influence your interest rate. You may choose between a fixed and variable rate based on your ability to pay back. Fee Check the processing fee for the loan being asked on top of the rates. Fees vary based on the pay plan. A huge charge might vastly raise the number of paybacks. Criteria to Get a Construction Loan The eligibility rules for home construction loans are similar to those set for traditional home loans. The following are some of the main criteria rules for loan applicants seeking home building loans: Availability: Home construction loans are often available both to resident & non-resident Indians (NRIs). A home building loan is available to both paid and self-employed persons. Age: Banks and house financing companies often accept home construction loan forms from people aged 18 years and over. They demand that borrowers completely pay back their loans by the time they turn 70. Duration: Users of home renovation loans may strengthen their eligibility for a construction loan by adding earning family members as co-borrower(s) or opting for a longer loan duration. Credit Score: Loans with credit scores of 750 or above have a better chance of getting home construction loans. Yet, certain banks and house financing companies may offer lower rates for house loans to users with better credit. Papers Needed for a Construction Loan The paperwork procedure for construction loans is identical to that of conventional home loans. The following are the primary papers needed to apply for a home construction loan: Identity proof Address proof Proof of age Proof of income Papers related to real estate Average build cost quote Completed form [B-02] Conclusion Remodelling your home may enhance its look, lift your emotions, and provide you with the satisfaction of proudly showing your home to family and friends. Access to easy construction loans helps you financially. The tax benefits that come with this loan enrich its features. To learn more about home renovation loans, visit Piramal Finance for related blogs and explore their products and services.

08-11-2023

Electronics

COVID-19 Variants in India and the Current Vaccines for Them

Viruses can mutate and develop. When a virus copies itself, it can change in the process. A variant is a modified virus. Most changes to viruses are small, but some changes make viruses more dangerous which makes the vaccines less effective. Delta and Kappa are the names for COVID-19 variations from the Greek alphabet. B.1.617.1 is COVID Kappa, while B.1.617.2 is COVID Delta. India is where both of these variants originated. The AY.1 strain, a European Delta plus type, has also been found in India. This version sticks to lung cells easily. This article will explain the COVID-19 variants in India and how well their vaccines work. [B-01] COVID-19 Variants in India The virus was first found in China and since then, it has evolved into several variants. In India, there are different kinds of Coronavirus variants. The Indian SARS-CoV-2 Consortium on Genomics (INSACOG) has 10 labs all over the country. It is responsible for sequencing and keeping track of these different types. The Delta variant, first found in the UK, is thought to be the most common in India. A report from INSACOG says that the Delta variant is now the most common strain in India. It makes up more than 75% of all COVID-19 cases in the country. Alpha, Beta, Gamma, and Kappa are the other virus types. It is thought that each of these variants is more contagious than the original virus, but their severity is still being studied. COVID-19 Variants As Per WHO Alpha B.1.1.7 Beta B.1.351 B.1.351.2 B.1.351.3 Gamma P.1 P.1.1 P.1.2 Delta B.1.617.2 AY.1 AY.2 AY.3 Eta B.1.525 Kappa B.1.617.1 Iota B.1.526 Lamda C.37 Overview of the Delta Variant The B.1.617.2 variant, the Delta variant, is thought to be related to the second pandemic wave, which hit India in the middle of 2021. The Delta variant is 50% more likely to spread than the original virus and it is also thought to affect younger people more than those who are older. Impact of COVID-19 Variants in India India suffered greatly due to COVID-19. Of the COVID-19 variants Delta caused the second pandemic wave, which led to a huge rise in the number of cases and deaths. It has also spread quickly in rural areas, where health care is not as well developed and accessible as in urban areas. The Government of India adopted certain measures to stop the virus from spreading such as lockdowns, curfews, travel restrictions and more. Vaccines For COVID-19 Variants in India In India, there are four different kinds of vaccines: Covaxin Whole virus vaccines employ a weak type of virus that can still replicate. Another way is to use a virus in which all of the genetic material has been destroyed but still makes the immune system react. One vaccine that fits into this group is Covaxin. Covishield and Sputnik V A vaccine with a viral vector also tells cells how to make antigens. But unlike the nucleic acid vaccine, this one uses a harmless virus like adenovirus to get the immune system to react. In India, two of these vaccines are Covishield and Sputnik V. Corbevax Viral protein fragments trigger an immunological response in a protein subunit vaccination. This is where the new Corbevax vaccine fits in. It was available in September 2021. Moderna The nucleic acid vaccine instructs cells to manufacture an antigen, which stimulates an immune response. This is the case with the Moderna vaccine. In terms of how well they work, a study found that the Covishield vaccine from AstraZeneca is effective against the Indian variant, Delta B.1.617.2. This vaccination was 60% effective in two doses against the Delta type. Researchers have also found that Covaxin is 61% efficient against the same variant. Trials indicated Sputnik V to be 78.6% to 83.7% efficient, while the Delta variant’s drop in efficacy is insignificant. Current Vaccination Strategies for COVID-19 Variants The Government of India has been using different vaccination strategies to fight COVID-19 and its many variants: The first step is to ensure that people get their vaccines. All those above 18 who live in the country can get free vaccines. The Government has also advised people who have already had the virus to get vaccinated. This protects them from other variants and ensures that they do not face the severity of COVID-19 again. The Government has set up a tiered vaccination system for high-risk groups like healthcare workers and the elderly. This ensures that those who need protection the most get it first. State/UTTotal DosesAndaman And Nicobar9,91,0051Andhra Pradesh11,05,41,231570Arunachal Pradesh19,04,914855Assam5,02,70,5511,013Bihar15,71,14,2982,530Chandigarh22,80,78352Chhattisgarh4,90,64,1103,812Dadra & Nagar Haveli and Daman & Diu15,78,2972Delhi3,73,47,885818Goa28,72,33311Gujarat12,76,84,7162,679Haryana4,54,39,627630Himachal Pradesh1,52,40,8361,896Jammu and Kashmir2,47,24,773547Jharkhand4,35,67,8574,518Karnataka12,07,41,9582,418Kerala5,74,66,100796Ladakh5,63,29657Lakshadweep1,45,0080Madhya Pradesh13,35,59,4241,425Maharashtra17,75,88,6912,963Manipur32,64,48090Meghalaya26,19,99492Mizoram17,90,1010Nagaland17,37,15534Odisha8,14,39,777164Puducherry22,66,651214Punjab4,69,46,564612Rajasthan11,51,79,4514,900Sikkim13,60,30486Tamil Nadu12,73,69,3221,846Telangana7,71,62,871824Tripura59,10,691168Uttar Pradesh39,04,84,8984,145Uttarakhand2,00,34,085869West Bengal15,59,30,572869Miscellaneous52,95,7130 How To Stay Safe From COVID-19 Variants To stay safe from COVID-19 variants, it is important to adopt certain measures. The first and most important step is to get vaccinated. It is also important to follow basic safety rules, like wearing a face mask, keeping your distance from other people, and staying away from large groups of people. People should also be extra careful when they travel, especially to places where variants are more common. [B-02] Conclusion Ultimately, COVID-19 variants have caused a lot of trouble. The Government of India has invested money into making more effective vaccines to fight the variants. But to stay safe from the variants, taking certain steps is vital. People are encouraged to continue following safety protocols to stop the spread of the virus and this includes getting the vaccine. For more information on COVID-19 variants and the vaccines to treat them, visit Piramal Finance to read more helpful articles like this one.

08-11-2023

Home Loan

A Complete Guide to Applying for Home and Mortgage Loans Together

Every person wants to own their own home. It is a way to ensure you have security for the rest of your life that you can’t get from renting a house. But it is not easy to buy a house. The process of buying a home is detailed, from saving for years to put down as a down payment to finding a good place to invest. Most people think that getting a home loan is the best way to buy property because it costs a lot of money. You can get a home loan and pay it back in easily Equated Monthly Instalments (EMIs) over up to 30 years. [B-01] How Does a Home Loan Work in India? Home loans are a contract between borrowers and lenders. In most cases, the bank or NBFC directly pays the owner or builder the home loan amount instead of the borrower. Borrowers typically repay their loans in EMIs over the course of their chosen repayment period, with interest added to the principal balance. You can now get a home loan at one of the lowest rates in the industry, with a lot of openness and trust. In India, it only takes a few steps to apply for a home loan. Before digital banking, these steps were hard to understand and took a long time. The process of getting a home loan today is not only easy but also quick. Most loans are disbursed to you within a week after all the necessary paperwork and checks from the bank. How to Get a Mortgage Loan in India Here’s a step-by-step look at how to apply for a mortgage loan: Fill out the form to apply The first step in getting a housing loan is to fill out an application form. It is the most fundamental document. You must include basic information about yourself, including your name, address, mobile number, profession, monthly and yearly income, educational background, etc. You should also describe the property you want to buy, how much it will cost, and the down payment you can pay. Additionally, you must submit documentation, i.e., proof of identity, address, income and tax returns for the last three years, and other financial documents. Document verification It’s important to know that many people apply for mortgage loans every day. Making sure your paperwork is in order will speed up the time it takes to process your application. At this point, the lender checks the information given by you. The lender focuses on the following papers: Residential address Employment details Credentials of the employer Phone number Employer number Background checks Banks check all the documents and do a background check on the borrower. In order to do this, the bank may look into the information you put on the form. Getting your credit report is easier now that RBI has made it a requirement for credit reporting agencies to give their customers a free credit report once a year. A credit score above 750 is good, and it shows how reliable a person has been in paying back loans in the past. Pay a fee for processing After the loan application has been sent in, it is crucial to pay the loan processing fee. Processing fees can differ from one lender to the next. Home loan processing fees are usually between 0.25 and 1 percent of the amount borrowed. Lenders charge customers a processing fee to cover the costs of managing their loan accounts. The agent’s commission may be rolled into this total. You can always talk to the lender about the processing fee to get a good offer. Even though banks and NBFCs have a set way of figuring out the processing fee, there is no harm in asking for the processing fee to be lower. Check your repayment ability The most important part of getting a home loan is ensuring the borrower can pay it back. Your request for a home loan will be approved or turned down by the bank based on how confident it is in your ability to pay back the principal and interest on time. If the bank gives conditional approval, then all of the conditions must be met before the loan can be paid out. It is wise to take a loan based on your income and ability to save enough money for monthly EMIs. Take care of the property papers After you get an official letter approving your loan, you must hand over the documents to the lender. The bank keeps these documents until the loan is paid off in full. The original property documents usually show the entire chain of ownership acquisitions and transfers until you sign the Sale Agreement. They also show the seller’s name, ID, and proof of address, among other things. Before approving the loan, the bank checks all the property documents. The bank also sends a representative to the property twice, before and after the loan is approved. Loan disbursement Lastly, after all of the paperwork is done, the loan is disbursed. The creditor may ask you to prove that you have saved up for the down payment. Loans are typically disbursed to the seller or developer of the purchased property. Different lenders have different times for giving out loans. Some move quickly and give out the loan as soon as all the criteria have been met, while others take longer to get everything in order. [B-02] Conclusion With a home loan, you can buy the house of your dreams. You should do a lot of research on the loans that different banks offer. Digitalisation in India has made the process of getting a home loan simple and quick. You can apply for a mortgage simultaneously with a home loan. Make sure to have the required paperwork to make the process quicker. Piramal Finance can help you make smart and wise financial decisions. Check out more blogs on their website!

08-11-2023

Education

Benefits Of FASTag And How To Get One

There are hundreds of cars are parked at toll plazas on national roads, waiting to pay the toll before continuing on their route. Paying the toll with cash and getting a ticket is often exceedingly sluggish and time-consuming. For hassle-free travel on public roads, FASTag is the ideal answer. Currently, FASTag is active at more than 420 toll booths on state and federal roadways. In the future, more toll booths are anticipated to be included in the FASTag programme. The toll charge is taken from the prepaid account connected to the FASTag. After the tag account is operational, the tag is attached to the vehicle’s windshield using Radio-frequency Identification (RFID) technology. The FASTag scheme promises to expand its network of toll booths over time and to operate completely cashlessly across India. [B-01] Advantages Of FASTag Some FASTag features and benefits include: Time-SavingThe time people wait at toll booths drastically decreased when FASTags were introduced. Since you don’t need to stop at a toll plaza to pay the toll fees, you save a lot of time and fuel. Simple to RechargeThe easy online recharging option of a FASTag is one of its most significant advantages. You may connect your FASTag to your bank account. Make sure there is enough money in your bank account to cover the toll payments. An NHAI wallet is another option for paying the toll costs. This prepaid wallet may be reloaded using many methods, including NEFT, UPI, debit cards, checks, and online banking. Five Years is the Validity PeriodFive years are the long-term validity of a FASTag. During this time, you may take advantage of cashless toll payments without constantly buying fresh ones. Remember that your bank account must be operational, or the amount in your NHAI wallet must be adequate. Simple Registration ProceduresThe FASTag registration procedure is straightforward. To sign up for a FASTag, go to a bank, a few stores, or a Point of Sale (PoS) facility at a toll plaza. Visit the website of any of the top FASTag issuing banks to register online instead. Environment-FriendlyBecause FASTags don’t need receipts or cash, they have removed the need for paper. Additionally, you consume less fuel since you don’t have to spend much time in a toll plaza line. Keeping Tabs on Your SpendingYou will be notified through email and your registered cell phone number when the toll charge is taken out of your bank account or prepaid wallet. The FASTag platform also allows users to verify FASTag assertions. As a result, you can keep track of the money you spend at toll booths. You May Use a Monthly Travel Pass: If you travel often, you can use an online method to upgrade your monthly pass to a FASTag pass. How To Use FASTag? Purchase a FASTagGetting a FASTag for your automobile is the first step. By bringing your ID and the registration papers for your automobile, you may physically purchase one at several toll plazas around India. Even banks and other websites like Paytm and others sell FASTags. The FASTag may be pre-linked with your bank account for simple later recharging if you purchase it from the bank. Adding the FASTag balance After then, you must pay for the FASTag. Depending on the seller you choose to purchase from, different costs for the FASTag may be applicable. FASTag will cost you around Rs 500 if you get it through Paytm, for instance. This sum consists of Rs. 100 for the tag, Rs. 250 for a refundable security deposit, and Rs. 150 for your FASTag’s first recharging.The Paytm-issued tag has a minimum barrier of Rs 150 as well. However, if you choose to purchase from HDFC Bank, the price of the tag is Rs 400; this sum consists of Rs 100 for the tag, Rs 100 for a reissue, and Rs 200 for a security deposit. In addition, HDFC Bank has set a minimum barrier of Rs 100 to keep your account active. Not just that. Every time you use this, you’ll also get cashback. Issuers of FASTags sometimes make these offers. Filling Up the FASTag BalanceThe next step is to recharge the FASTag’s balance. You may use your bank account to recharge the FASTag by logging onto the payment system of the bank that issued it.Alternatively, if you purchased it using Paytm, you may recharge your associated Paytm account, and the amount will be taken out each time you cross a toll booth on a public road. Additionally, you may download the “My FASTag” app and recharge your FASTag there using the UPI. How To Buy And Recharge A FASTag? Digital FASTags FASTags may be ordered online from the websites of Issuer Banks, NHAI, and IHMCL, and the courier will deliver them to the buyer’s door. Mobile ApplicationMy FASTag is a consumer app in the App Store for iOS and Android devices. On this app, users may buy or recharge FASTags. Additionally, the app offers online grievance resolution and transaction tracking. POS Users may also establish tag accounts by going to any Point of Sale (POS) facilities of the authorised issuing banks in Toll Plazas or Banks’ sales offices. Twenty-three banks permit the issuance of FASTag in the public and private sectors. Consumers may call the Issuing Bank Customer Care lines to find the nearest POS station. Users must bring the original and a duplicate of their KYC papers to the POS or Sales office location. It’s crucial to bring the car to the POS or sale office so you can buy the FASTag. [B-02] Summing Up The Government of India established the FASTag to alleviate the inconvenience of standing in a lengthy line at a toll plaza. A FASTag is a reloadable tag placed on your car’s windshield and automatically deducts the toll money to allow for rapid and simple vehicle passage over the tolls. To read more about FASTag, visit the Piramal Finance website.

08-11-2023

Business Loan

All The Ups-Downs You Need To Know About Business Loan Interest Rate In 2022

Are you looking for the best place to find a business loan interest rate in 2022? Do you want to know more about an online business loan? Then you are in the right place. Now that you know more about the many types of business loans available and the associated interest rates, we need to discuss the various factors that influence the rate a lender provides you. This will allow you to plan with certainty in terms of money and other necessities. You may use them to negotiate better conditions with the bank while taking online business loans, perhaps resulting in lower interest payments. Regarding loans, it’s crucial to remember that it’s better to be overprepared than underprepared. Let’s take a closer look at these issues. [B-01] The option of a bank or a credit union The biggest factor that impacts your interest rate is who you borrow money from. Credit unions and banks may provide cheaper interest rates than other online business loan providers, but they also have tighter guidelines about who may borrow money and how it can be utilised. As an alternative, online business loan banking services provide means to get money with fewer restrictions on who may obtain it and how much they can spend. However, when all prices are considered, they may be expensive. Your particular credit score Your credit history and score are critical when applying for a small online business loan. Remember that lending businesses are careful about where they lend money. They will know you can be trusted with money if you have a solid credit score and history. It may even help you obtain a lower interest rate for an online business loan. However, a low FICO score does not automatically exclude you from obtaining a loan. Many internet lending organisations are eager to deal with loans that do not have the finest credit history. Remember that the interest rate you are given may be more than you anticipated. Also, if you are concerned about your credit score, you should begin working immediately to eliminate your debt. If you don’t have much credit history, you might acquire a new credit card and focus on improving your credit score before applying for a business loan. Security When you borrow money, you may be required to put up collateral, such as the value of your house, vehicle, or other possessions. While not all commercial loans need collateral, certain banks may provide a higher rate if you provide a guarantee. You may be able to acquire a cheaper business loan interest rate if you have collateral, but if your firm fails and you have taken out a loan, your assets may be taken away. Borrowing Terms The conditions of how you repay the online business loan will also have an impact on the interest rate you pay. Loans with longer repayment terms often have cheaper monthly loans. However, keep in mind that loans with longer durations often have higher overall interest costs. The sort of loan you want to get The online business loan you choose determines a portion of the interest rate you agree to pay. As a result, company owners must carefully consider their financial requirements. As a result, consumers will spend less time on loans that will not benefit them as much and more time on loans that will. Money is essential at home and work Finally, your personal and corporate circumstances may affect the business loan interest rate on a loan. Suppose your company is already up and running, and you want to seek finance for expansion. In that case, lenders will look at how long you’ve been in business, how much money you generate each year, how excellent your business credit is, the kind of organisation you have, and how you intend to utilise the money. Finally, this determines how hazardous it is to lend you money and what your business loan interest rate will be. How much do interest rates on business loans alter or remain the same? Small company loans might have fixed or variable business loan interest rate which affects how payments are paid. You may wonder what the primary difference between variable and fixed-rate loans is. Then, let’s go further into these distinctions. Loan interest loans may fluctuate On the other hand, a variable-rate loan does not necessarily have a fixed interest rate, and it normally starts cheaper than a fixed-rate business loan interest rate. However, this rate may vary due to the nature of the market. As a consequence, your monthly payments may vary. It may also be more difficult to create long-term budgets that you can rely on. However, you may obtain either the lowest or highest interest rate available with variable rates. So keep this in mind when determining what kind of loan you want to receive. Fees associated with a loan are referred to as Online business loan requires you to pay interest and other expenses. The most significant of them is the loan fee. The total amount of interest you pay on your loan will be determined by the following: Consider your FICO score. What kind of loan is it? The financial institution (bank or credit union) How much money do you need to borrow? How will payment be made? Lenders must be upfront about all fees and business loan interest rates from the outset. If they aren’t, you should consider applying with another lender since you don’t want to be startled by high fees. This post will look at the most frequent charges associated with business loans. Costs that may be covered Lenders will assess an “underwriting fee” depending on your creditworthiness. Checking references, looking at financial documents, and checking credit ratings are all part of the process. Fee at the outset The loan origination charge is a one-time cost paid at the start There is the SBA Guarantee Fee The charge for an SBA loan guarantee varies from 0% to 3.75%. This, however, will be determined by the amount of online business loan you need to borrow. As a result, the quantity of your loan will increase the percentage rate you pay. The final expenses are determined at the closing table On the other hand, closing expenses are associated with how your online business loan will be paid for. For example, if you wish to acquire a company or get a business loan, you may be required to pay for professional loans such as legal advice. The many sorts of company loans and how to evaluate them You may be concerned about comparing business loan interest rates now that you know more about the many types of business loans, their interest rates, additional loan expenses, and eligibility conditions. Annual percentage rates are often used to compare business loan interest rates. This yearly rate covers the interest and loan charges, which we’ve previously discussed. This will estimate how much you’ll have to pay each month after getting a loan. However, remember that these rates may vary based on various circumstances, including your credit score and the amount of money you have. Your lender may also provide you with information that you can input into a business loan calculator to see how much it will cost you each month to repay the loan. A list of the papers required to apply for a commercial loan Applicants must provide the necessary papers to the lender as part of the online business loan application procedure. While this article does not detail what you need to apply to a particular organisation, these are some of the most typical documents you’ll be requested to bring. This way, you’ll be prepared for every stage of the application process, which should speed things up: Credit report information and status If relevant, the company’s credit history and credit score. Yearly earnings and income How Much Is Your Work Time Worth? When your loan payments were divided by your income, Please indicate the assets that will be used to secure your loan. What market segment do you operate in? A business strategy that includes a plan Your bank statements A copy of your company’s lease, if you have one. Employees, how many Social Security cards do they have? Legally binding agreements and contracts The foundation papers of the firm Please describe how you intend to utilise the funds from your business loan. When you pay income tax on your own money Taxes based on how much money a company earns What exactly is a balance sheet? Any additional financial responsibilities must also be specified, whether commercial or personal A legitimate registration or incorporation certificate that allows a business to operate Establishment Permits Wage and hour records in two copies Making preparations for commercial insurance Who owns what, and to whom do they belong? Proof of a diversity permit or a federal passport [B-02] Conclusion It may be difficult to comprehend how interest rates operate with an online business loan if you have never taken out a loan. But now that you’ve read our article, you should better understand the distinctions between the various kinds of loans and their expenses. How fixed and variable interest rates affect your entire financial picture. Before asking for an online business loan, you should consider what your company needs. As a result, you will not have to spend time applying for loans that do not suit you or have exorbitant interest rates. Instead, you may concentrate on obtaining the best financing for your specific requirements. Investment Reliable doesn’t give financial advice, but we provide unbiased information and reviews about trading, investing, and finance. Users should always look into things on their own. There are also more in-depth, educational articles on Piramal Finance.

08-11-2023

Home Loan

Unlock Festive Joy with the Best Home Loan Offers at Piramal Finance

Do you dream of having your home under your or your parent’s name? If yes, you are not alone in this wide world dreaming of making a home with your hard-earned money. However, buying a home requires a lot of money, calculations, perfect timing, and luck. And if one of the things from the list goes missing, you may never find your dream home. Suppose you have been thinking of buying a home for a while, in that case, the festive season is the right time for you to go ahead and make your dream come true. The festival season is when most people look to buy a new home, car, electronics, etc. The festive season brings huge discounts and offers, making it an ideal time to purchase a new home. Taking the benefits of the festival season allows you to reduce the cost of borrowing, making it a bit easy for you to pay for your dream home. However, these festive offers help builders and banks increase sales, making it a win-win for customers and businesses. Now let’s look at the most amazing and beneficial festival season offers for home loan takers. [B-01] Benefits of getting a home loan in festival season Money lenders are waiting for you in the festival season to get a home loan and fulfil your evergreen dream of building and making a home with your own hands. You are applicable for taking a home loan if you are taking it as a new loan or creating a balance transfer. However, salaried and self-employed individuals can also apply for home loans and avail of the all-new benefits and offers of a home loan. The following are the benefits you will get on applying for a home loan during the festival season. Decreased interest rate A festival season may allow you to build your dream home with fewer interest rates on home loans. For example, many lenders discount interest rates from 0.50% to 1.00% during festival seasons. Therefore, a decreased interest rate may lead to fewer EMI amounts, resulting in fewer borrowing costs. For example, If you take a home loan with a 7% interest rate of Rs 50,00,000 for ten years, the EMI will be Rs 58,054. However, if you take the same loan amount during a festival season at a decreased interest rate of 6%, your EMI would be Rs 55,510. Fewer or zero processing fees or other charges You may not count processing fees or count them as a miscellaneous cost while taking a home loan. But for many home loan takers, it increases the actual home loan amount and may increase the overall expense. Therefore, taking a home loan during the festival season allows you to have fewer or zero processing fees on your home loan. On the other hand, the lenders decide to cut down the processing fees to acquire more new customers. EMI waiver Many lenders decide to waive off a certain amount of EMIs to be paid by the borrower. For example, XYZ lender waives off X number of EMIs from the total EMIs; you will directly save the X numbers of EMIs per month. However, these discounts and offers come with specific terms and conditions. You must wait to foreclose the loan. It is not prominent that every lender will indeed waive off certain numbers of EMIs. Remember that some lenders may come up with different offers and benefits for home loan seekers. Easy to apply Festival season is beneficial for both lenders and customers. And it’s a great opportunity for businesses to increase the number of applicants. However, applying for a home loan is a tedious task, and many customers find a secondary way of hiring an agent for the processes to tackle. Therefore, the lenders, during the festival season, may decide to decrease a few steps for a home loan to make the application easy to apply. As digitization happens, you can easily apply for a home loan online from the lender’s website, where you can submit the application form in a few minutes. However, during the online application process, if you find any difficulties, the company will provide you with direct assistance online, or you can visit their office for further clarification on the process. The best offers from builders India is making rapid progress in every industry and sector. And the real-estate sector is booming with multiple high-rise construction projects to economy projects for middle to lower-middle-class people. Due to the high competition in the real-estate sector, builders have come up with multiple offers to attract customers. However, during the festival season, most builders decide to release a new offer or discount on the pricing of the home or sometimes decide to add complementary home furnishing items along with the home. And sometimes, builders add freebies, including gold coins or free parking for the customers who pre-book the home during a specific period. [B-02] Final thoughts It’s auspicious to buy anything new during the festival season, be it a new home, car, electronics, or anything you need. However, everyone dreams of buying their own home, so a home loan would immensely help you when you decide to process it during the festival season. However, one should never decide to take a home loan by only looking at its offers and benefits; it provides, instead looks at its overall impact on your financial goals and conduct thorough market research before applying for it. After all, a home loan is a loan you need to pay back. And you are bound to pay the money back, which isn’t yours until you repay all of it. Are you planning to process a home loan? Visit Piramal Finance for smooth, and cost-saving home loan options.

08-11-2023

Schemes

Am I Eligible to Invest in the National Pension Scheme (NPS)?

The National Pension Scheme, or NPS, is a voluntary retirement plan, which encourages working professionals to save money for retirement. Introducing National Pension Scheme The National Pension Scheme is a Government of India initiative. It was started in 2003. Initially, only the employees of the government sector were eligible to avail of the scheme. In 2009, however, changes were made to the scheme. These changes now allowed people working in the public, private, and unorganised sectors (except the armed forces) to benefit from this scheme. [B-01] Indian citizens aged 18 to 60 are eligible for this scheme. A minimum of INR 6,000 per year or at least INR 500 per month in installments must be invested to meet the eligibility of this scheme. The National Pension scheme has a maturity of 60 years, which can be extended up to 70 years. The scheme can help you secure funds after retirement by taking good financial decisions. All these factors make the National Pension Scheme a sustainable solution for senior citizens who might face financial troubles after retirement. The interest rates offered under the NPS are 8 to 10%, and the NPS savings are pooled in a pension fund. The NPS is regulated by the Pension Fund Regulatory & Development Authority (PFRDA). The NPS allows a partial withdrawal of about 25% of the total amount after three years of opening an account. This is allowed only under special situations like purchasing a home, funding your child’s higher education, or health emergencies. Benefits of the National Pension Scheme The National Pension Scheme offers a range of benefits. This is why many people have started investing in NPS since it came around. Here are some reasons to start investing in NPS: NPS offers flexibility: The National Pension Scheme offers a wide range of investment options like pension funds (PFs). These can be used for planning future finances. As an investor, you can also change the of investing. Your NPS account can be easily monitored. NPS offers simplicity: Opening an NPS is easy if you have a PRAN (permanent retirement account number). With your unique PRAN number, which remains the same for a lifetime, the whole process becomes quick and easy. You can open two kinds of accounts under NPS: Tier 1 is a non-withdrawable permanent account. Tier 2 is a voluntary withdrawable account, which can only be activated when a Tier 1 account exists. Portability: NPS is seamless and has immense portability. Even if you switch between jobs or locations, your NPS account can be transferred. A very hassle-free system allows changes to be made to the account just as quickly and easily. Well regulated: It is very well regulated by PFRDA. Opening an NPS account is transparent, enables regular monitoring, and offers the least account maintenance cost. Compounding and low-cost investment: An NPS account requires minimum investments. And the account maintenance cost is low. In addition, the benefits of compounding interests are highly beneficial to you as investors. Easy online access: Online platforms make managing and investing in NPS easier and more convenient. Good returns/interests: A portion of your investment goes into equities investment. This kind of investment offers high returns as compared to other traditional tax-saving investment schemes. The interest rates are as high as 9-12%. Tax benefits of NPS: Accounts with a maximum limit of INR 1.5 lakh are eligible for tax exemption under Section 80C of the Income Tax Act. The 100% withdrawal after 60 rule prevents the temptation to withdraw money before maturity. As an investor, you get a lump sum of money only after 60. Risk assessment with NPS is very accessible. Eligibility Criteria for Investing in National Pension Scheme Let us come back to the initial question, i.e., are you eligible to invest in NPS? Check these criteria out to know your eligibility. You can also find out whether you should or should not invest in NPS: Aspiring investors should be Indian citizens. Even NRIs are eligible to invest in NPS. The investor should be 18 to 60 years of age when they apply. KYC (Know your Customer) submission is necessary. You should have a subscriber registration form. It needs to be submitted with proof of identity, address, date of birth certificate, and point of presence. A twelve-digit PRAN number is necessary. If you meet these criteria, you can start investing in NPS. How to open a National Pension Scheme Account A National Pension Scheme account can be opened offline or online. The online process involves the following steps: You can create an account on the NPS official website in less than 30 minutes. You must link your PAN, Aadhar, and registered mobile number with your NPS account. An OTP will be sent to your registered mobile number. It will let you verify yourself and generate NPS login details. To open an account offline, you can follow these steps: Find a point of presence or POP registered with the Pension Fund Regulatory and Development Authority Collect a subscriber and submit it along with the KYC paper Invest with an initial amount that lets you get a PRAN or Permanent Retirement Account Number [B-02] The Indian economy is advancing in every sector. There is a growth in investments and awareness towards saving. The future, however, is unpredictable. So you must plan. Piramal is a leader in the investment market. Our experts can help you invest right. You can find more information and guidance about personal loans and finance at www.piramalfinance.com.

08-11-2023

Tax

All About Business Loan Tax Deduction Under Section 80C

People who have taken loans for business are entitled to certain tax deductions under Indian income tax laws. Section 80C of the Income Tax Act allows a deduction for the interest paid on loans taken for businesses. The deduction is available for both new and existing businesses. To claim this deduction, you must be able to show that the loan was used for business purposes. The deduction is limited to the amount of interest paid during the year. If you are planning to take out a business loan, it is important to understand how the tax deduction works. This will help you maximise your tax savings. Continue reading to learn more about business loan tax deductions under Section 80C. Section 80C Business Loan Tax Deduction A business loan tax deduction under Section 80C is a deduction that businesses can claim on the interest paid on their loans. The deduction is available for new and existing loans and can be claimed for up to five years. To claim the deduction, businesses must provide evidence of the loan agreement, repayment schedule, and interest paid. The deduction can be claimed in the year the loan is taken out or in subsequent years. The maximum amount that can be deducted yearly is Rs 1 lakh (Rs 100,000). This limit applies to all deductions under Section 80C, including those for home loans, education loans, and life insurance premiums. The business loan tax deduction under Section 80C can save businesses thousands of rupees a year in taxes. It is an important tool for businesses to reduce their tax liability and improve their bottom line. Business Loan Tax Deduction Calculation To calculate a business loan tax deduction in India, you will need to follow these steps: Determine the eligible amount of the business loan. The eligible amount is the total loan minus any prepayment penalties or fees. Calculate the interest paid on the business loan. This can be done by taking the eligible loan amount and multiplying it by the interest rate. Add the calculated interest payment to your other business expenses when filing your taxes. The total amount of deductions for all business expenses cannot exceed 50% of your total income from the business. Types of Business Loans that Qualify for a Tax Deduction Under Section 80C There are many types of business loans that qualify for a tax deduction: Home loans: Under Section 24 of the Income Tax Act, home loans used for business purposes are eligible for a tax deduction of up to Rs. 1.5 lakhs per year. Auto loans: Auto loans taken for business purposes are eligible for a tax deduction of up to Rs. 1 lakh per annum under Section 80E of the Income Tax Act. Education loans: Under Section 80E of the Income Tax Act, education loans taken for business purposes are eligible for a tax deduction of up to Rs. 1.5 lakhs per year. Personal loans: Under Section 80C of the Income Tax Act, personal loans taken for business purposes are eligible for a tax deduction of up to Rs. 2 lakhs per year. Machinery loans: Similar to vehicle loans, you can deduct the interest paid on machinery loans used for business purposes. Startup loans: Many startups take out loans to get their businesses off the ground. The interest paid on these startup loans can be deducted from your taxes. Working capital loans: Often, businesses need extra funds to cover their day-to-day expenses. The interest paid on working capital loans can be deducted from your taxes. Business Loan Tax Deduction: How Much Can Be Saved? Assuming your business is structured as a pass-through entity, such as an LLC or sole proprietorship, the loan proceeds are generally taxable. However, you may deduct a portion of the loan as business expenses if the funds were used for business purposes. Let’s see how much can be saved in taxes. For example: If the business owner takes a loan for business purposes and pays interest on that loan, then she can avail herself of a deduction for the interest paid under Section 80C of the Income Tax Act. The maximum amount that can be deducted is Rs 1.5 lakh per financial year. This deduction is over and above the limit of Rs 1.5 lakh that can be claimed under Section 80C for other deductions such as investments in PPF, life insurance premiums, etc. Thus, if a business owner takes a loan of Rs 10 lakhs at an interest rate of 10%, she can claim a deduction of up to Rs 1.5 lakhs on the interest paid every year. This effectively reduces her annual tax liability by up to Rs 45,000 (30% * 1.5 lakhs). These significant savings can be used for other important expenses, such as growing the business or personal needs. Ways to Claim Business Loan Tax Deduction Under Section 80C Assuming that you have obtained a business loan for your company, you can claim a tax deduction under Section 80C of the Income Tax Act of 1961. The maximum deduction amount is Rs. 1.5 lakhs. To avail yourself of this deduction, you must submit various documents to the lender, such as: Your business loan account statement for the financial year A copy of your income tax return filed for the previous year A certificate from a chartered accountant certifying that the loan has been used for business purposes Once you have submitted these documents, the lender will calculate the eligible deduction amount and send you a confirmation letter. You can then claim the deduction by submitting this letter to the Income Tax Department. Tips for Section 80C Business Loan Tax Deductions Remember a few things to remember while claiming business loan tax deductions under section 80C: Make sure your business loan is for a genuine business purpose, not personal use. You can claim tax deductions on the interest payments made on the business loan under Section 80C of the Income Tax Act. The maximum amount you can claim as a deduction under this section is Rs 1.5 lakhs per financial year. You must submit all supporting documents and income tax returns to claim the deduction. [B-02] Key Takeaways You can save money on your taxes with the right business loan tax deduction. Be sure to talk to your accountant or financial advisor to see if this could benefit you and your business. If you’re interested in learning more about the business loan tax deduction under Section 80C, visit Piramal Finance, where you can read more articles like this and get started on your business loan taxes with the aid of a professional.

08-11-2023

Business Loan

All The Advantages Of Online Business Loans You Need To Know

The satisfaction of being in charge and making decisions comes from owning a business. However, despite the positive note, it has another side. The difficulty and pressure of raising funds for your business. When you have representatives working for you, there is also the fear of uncertainty and the tension of making the right choice. The asset you’re willing to make in top-of-the-line equipment, and staffing with highly skilled workers are critical to your company’s expansion. A business loan is an answer to this problem. With business loans, you can hire new employees, get new pieces of equipment, and also buy raw materials to take advantage of deals and meet seasonal demand. [B-01] Top 7 Benefits of Online Business Loan Online business loans can be beneficial for various purposes, but there are some well-known benefits. Let’s discuss some of the benefits of an online business loan. 1. Convenient and Flexible Online option is the fastest way to get a business loan. You do not need to submit voluminous documentation before submitting your application; instead, you wait for it to be submitted and approved. Digital verification of documentation is used as much as possible, which saves a lot of time. Processing speed is essential when you need an emergency loan, as offline sources would not only be slower but also prove to be more expensive given your desperate need. You can easily apply for a loan from the comfort of your home; no need to wait in long lines in banks to get a loan. It saves time and effort as online moneylenders are available online 24 hours 2. No collateral Collateral is a monetary asset you provide to the bank while requesting a loan. You can easily apply for a loan online without worrying about the collateral and still get up to 25 lakhs. Online Business loans are completely unsecured, unlike other types of loans that require borrowers to put up an asset, such as their home, as collateral. It means you can immediately get money for your business. As a result, getting a loan without collateral makes it easier for business owners to earn money and keep their businesses going. 3. Easy To Avail Obtaining a business loan online is much easier and more convenient than searching for investors and having lengthy discussions. When you need an emergency loan, processing speed is especially helpful as offline sources would not only be slower but also prove to be more expensive, given your need. You can apply for a loan in easy steps, no matter where you are and when you want. You can start your application anytime. As online lenders are available 24/7, you can easily apply for a loan without worrying if the lender’s branch is open, or whether there is ample parking or not. 4. Economical The lender incorporates the costs associated with physical interactions, like site visits, branch infrastructure, and the loan interest rate. There are no additional costs during the online loan application process apart from those clearly stated on the lenders’ websites. Whereas, offline loans may require additional fees as agents may be paid commissions. Another significant cost benefit is that your credit score is not obtained for every lender mapping when you apply online. On the other hand, if you apply offline, each lender will check your credit score, which would increase your borrowing costs. 5. Ample options and Customisations When you apply for a loan online, you get a vast pool of moneylenders with numerous loan options. You can select from various options rather than be forced to take what has been offered. You map out the one that best suits your needs, and if everything goes well, you move on to the next step. An online loan essentially puts you, the borrower, in a position where you can match the business with the right lender. The ability to customize a business loan is another advantage. The borrower can customize the included elements of the loan, such as the loan amount, duration, interest rates, and so on, based on the ability to repay and the required capital. Customization ensures that the borrower does not run out of money and gives them the loan they need without making it expensive. 6. Direct transfer Usually, in the case of offline applications, it takes a long process to transfer funds to you, and it gets complex, but in the case of online loans, the amount is directly transferred to the bank account without any worries. A company does not have to shut down operations or growth plans while waiting for funds, as online business loans usually require minimal documentation and are disbursed quickly. Numerous online lenders that offer business loans will deposit your assets quickly after you are approved. You can get the money the same day you apply, in a few business days, or within 24 hours, depending on the lender you choose. 7. Lower interest rates Online business loans usually have lower interest rates than other types of loans due to the fierce competition among lenders for customers’ attention. Most business owners believe that a business loan comes with a high-interest rate, making it a burdensome financial commitment for them when they don’t know what their future sales and income will be. Online business loans with lower interest rates can reduce their financial obligations while obtaining sufficient funds for their organizations. [B-02] Conclusion You can overcome any financial obstacles with the help of an online business loan, which will also you with the financial support you need to upgrade your business plan. An online business loan is a good option for businesses that want quick and easy financing. Piramal Finance provides fast approval and a wide range of financing options. It offers various types of unsecured loan options that are highly beneficial, further helping you in choosing the one that best suits your requirements. You can apply for a loan from the comfort of your home or office thanks to the online process that saves you time and money. Contact Piramal Finance immediately to boost your business.

08-11-2023