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Investment

Top reasons why investing in government housing scheme is best option in 2022

Buying a house is a need that requires a large investment. It requires due diligence towards factors like budget, loans, down payment, and many other minor details. Going through all these minor details takes time and effort. Furthermore, not all options you look at will be affordable. Government housing schemes help you get your dream house without hassles. Government housing schemes include houses, properties, flats and other housing options sold to people at affordable rates. The central or state governments fund the building of these projects, which are then made available to anyone interested. In India, the Ministry of Housing and Urban Affairs (MoHUA) overlooks the launch and functioning of various housing schemes. [B-01] Why should you look at government housing schemes? 1. You get home loan subsidies. Government housing projects provide subsidies that you can avail of on home loans. Thus, your monthly EMIs become more affordable. On average, you can avail of a subsidy anywhere between 3-6.5% on a home loan with a tenure of 20 years. Even a subsidy as small as 0.5% can help you save a lot of money in the long term. For example, a 3% subsidy on Rs. 50 lakh loan with an interest rate of 9% p.a. can reduce your total interest payments from Rs. 57.9 Lakh (Rs. 45,000 EMI) to a net interest payment of Rs. 35.97 Lakh (Rs. 36,000 EMI) over 20 years. 2. Your investments are safer. Real estate has become the go-to option for many investors because rental and property values are increasing at a rate of 6-10% p.a. Furthermore, real estate provides an excellent hedge against market volatility. In contrast to the volatility of the stock market, property values rise over time. For this reason, the housing market is one of the safest investments for long-term returns. However, with so many buildings and properties going under development and redevelopment, it can be confusing to choose one. Furthermore, development projects of independent contractors are not always completed. It makes government housing schemes a safer option. 3. You get possession on time. The most significant advantage of a government housing scheme is that you get possession on time. Unlike private projects, there are rarely any holdups during government projects. In the case of private builders, there are many unexpected hurdles. These include a lack of liquidity, land disputes, and promoters losing confidence in the project. This hinders timely possession, which is a major concern for many. You will not face these problems with government housing schemes. These projects follow stringent legal requirements in all aspects and are therefore rarely delayed. 4. The property rates are fair. Government housing schemes offer lower rates on properties. Being government-backed schemes, they are not high-profit schemes. Rather, they are focused on social and rural development. Private contractors and developers have a profit margin in each project. This margin is reflected in your overall rate and the amount you have to offer to get the property. In contrast, government-led schemes are focused on reducing homeless people, making properties more affordable or urban/rural growth. Therefore, they have little (if any) profit margin. Schemes like PMAY offer prices lower than market rates. 5. The eligibility criteria are fair and strict. Government-backed housing schemes are available to all investors. There is no discrimination. All those who qualify as first-time homebuyers can buy their dream house, regardless of whether they are a member of the economically weaker section (EWS) or a high-income group. This advantage is not available for private contractors who may sell property based on their relationship with the buyer. 6. Project completion is guaranteed. For government housing schemes, only minor legal delays affect project completion. Generally, when the government is the sponsor, there is no risk with legal processes. As a result, the buyer may be certain that developers will finish the project on time. You may not get this advantage with private contractors who can abandon their projects if they face too much loss. Which are some of the famous housing schemes? 1. Pradhan Mantri Awas Yojana (PMAY) PMAY guarantees that every qualified urban household has a pucca house by 2022. It addresses the scarcity of urban housing among income groups and slum residents. 2. Rajiv Gandhi Awas Yojana Housing Scheme (RAY) RAY was launched by the Government of India in 2009. It falls under the Ministry of Housing and Urban Property Alleviation (MHUPA). It seeks to eradicate slums in India and regulate unlawful structures. 3. Aponar Apon Ghar Scheme (Assam) This scheme offers low-interest-rate home loans to Assam state’s government employees. Applicants must be permanent residents of Assam. They must also be employed in a government department for 5 years. 4. Delhi Development Authority (DDA) Housing Scheme DDA aims to meet the housing demands in the nation’s capital. DDA falls under the umbrella of the PMAY. The housing program gets dispersed among a few chosen categories. These include the high-income group, middle-income group, low-income group, and EWS group. Other Schemes include: MHADA West Bengal BHS Haryana Housing BHS Kerala Housing BHS Affordable Rental Housing Complexe [B-02] Conclusion For those purchasing their first house, government housing programs offer various benefits. They are the most comprehensive housing schemes anyone could ask for as they have low-interest rates, desirable locations, and prompt handing over of the property. Government Housing Schemes are the best option for first-time home buyers in 2022. If you’ve decided to use a government housing scheme to build your ideal house, consider your finances before you purchase a property. You can apply for a home loan if you do not have the capital needed for the property. Piramal Finance provides personal loans at affordable EMIs and competitive interest rates.
08-11-2023
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Investment

Understand how much to invest in mutual fund

The investment market is beaming with mutual funds advertisements. You have often seen advertisements for various mutual fund schemes on social media and other platforms. Investing in top performing mutual funds in India comes with multiple benefits, which have even attracted millennials. The benefits of investing in mutual funds are: You can start with any amount, even as low as 500. Diversify your portfolio across multiple stocks and other instruments. Can start a SIP No need to open a DEMAT account for investment. However, for new investors question always remains the same, how much should you invest in mutual funds? While there is no definitive answer to how much money you should invest in mutual funds. There is a method that can help you decide on the amount in a mutual fund to invest. Before going on the technique, let’s see various factors that you should consider before deciding on the top performing mutual funds in India to invest in. [B-01] Factors affecting the amount in a mutual fund to invest: Everyone has different financial goals, stability, and salary, which decide the amount in a mutual fund to invest. So, let’s see how you should determine the amount to invest in top performing mutual funds in India. Identify your financial goals: Like everyone else, you would also have goals you would like to fulfil once you have enough money. In terms of personal finance, these goals are called financial goals. You must realise your financial goals to decide the amount in a mutual fund to invest in. When deciding on a financial goal, it’s better to be as realistic as possible. The best to decide on a real goal is to follow the principle of SMART (Specific, Measurable, Attainable, Realistic, and Time-bound). Prioritise your goals: Once you have realised your financial goal, the next step is prioritising these goals. You may want many things as your goals, but some are more important than others. Prioritising these goals can help you decide better on the amount in a mutual fund to invest. Calculate the amount to invest in a mutual fund: Once you have realised and prioritised your financial goal, you have reached the final step. It’s time to decide the amount in a mutual fund to invest. This can be done by considering your monthly expenses and other commitments. Amount to invest in a mutual fund: If you want to invest smartly in a mutual fund, you should follow the rule of 50:30:20 rule. If you are a salaried employee, implementing the 50:30:20 financial plan ensures a safe and bright future for your family. The 50:30:20 rule: According to the 50:30:20 rule, 50 per cent of your salary should be invested in needs, 30 per cent in wants, and the remaining 20% should be saved for emergencies. Needs are those expenses that can’t be ignored, such as groceries, house rent, EMI, and other utility bills. On the other hand, wants are those expenses that aren’t essential but are required to maintain a better life quality. Costs such as gym membership, holidays, subscriptions to OTT platforms etc., come under wants. If you want to increase your amount in a mutual fund to invest, try to cut down the expenses from the wants section. You must use at least 20 per cent of your monthly income to build an emergency corpus. The emergency corpus should be three times larger than your monthly salary. Once you have created an emergency corpus equal to thrice your monthly salary, you may choose a mutual fund to invest the remaining amount. In short, you can invest around 20% of your monthly salary in mutual funds. If you find the 50:30:20 rule a little overwhelming, you can also try the FOIR method. Because once you have selected a particular amount to invest in a monthly SIP, there is significantly less chance of decreasing it. So, before deciding the amount in a mutual fund, consider all possible scenarios. The FOIR Principle The FOIR stands for fixed obligations to income ratio, and as per the principle of FOIR, needs are paramount for survival. Moreover, you can’t compromise on needs. So, after fulfilling your essential needs, you can choose a mutual fund to invest the rest amount. For example, if your monthly income is 50000 and your needs account for 20000, including all expenses, you have left with 30000. According to the FOIR, the available amount for investment is 30000, and you can use any amount up to 30000. Typically, a lower FOIR value means you have a relatively higher investment amount and vice versa. However, depending on the financial goal and security, you should save some amount in the emergency corpus before increasing the portfolio value. According to financial experts, keeping your emergency corpus as liquid assets is better. It’s because liquid assets offer high liquidity and are easier to redeem. Liquid assets also greatly appreciate the deposited amount compared to the savings account. Typically, a savings account yields around 2% of yearly returns; compared to this, liquid assets give you around 6-7 per cent of annual returns. Now that you have understood the idea of the amount in a mutual fund to invest in, you may find the top 5 mutual funds in India easily. Investing in the top 5 mutual funds in India may provide you with a safe and steady return without depending much on the market conditions. [B-02] Conclusion: Investing in mutual funds helps you secure your future. However, you shouldn’t invest all your money in mutual funds or any other investment option. It’s because even mutual funds are subject to market risks even after being the safest option. Moreover, you must also set aside some part of your monthly salary as an emergency fund. You may also apply for a personal loan from Piramal Finance in case of an emergency. Know your financial goal and health first, then decide by yourself. You must understand how much you can afford to invest in a mutual fund without compromising your lifestyle. Read the Piramal finance blog and subscribe to our newsletter for more insight and financial knowledge.
08-11-2023
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All You Need to Know About Blue Chip Mutual Funds

Large, well-established companies are known as blue chips. They are popular and valuable. They openly share the company’s achievements. Because of this, blue chip fund exposure is highly sought after by investors. These are the ones looking to build a portfolio that can consistently beat the rate of inflation. However, it is essential to think about everything when dealing with a blue chip mutual fund. This blog post focuses on blue chip funds. It describes their features and elaborates on their goals. [B-01] What is the mechanism of blue chip funds? The vast majority of investors choose to invest in either blue-chip companies or blue chip mutual funds. Blue chip funds are investments in publicly traded firms. They have strong and well-known brands. Examples of blue chips are Tata, Reliance, Hindustan Unilever, and others. A kind of equity strategy known as a “blue chip fund” provides its investors with a diversified portfolio of reliable companies. These give high yields over the long term. These equities are held by big, liquid firms. So there is less risk associated with investing in them. They are a secure investment plan. This plan has a history of producing adequate returns. So blue chip funds are yet another feasible possibility that investors can consider. How does it work? “Blue chip” firms are companies that have a history of outstanding financial success. Owning shares in “blue chip” companies may be profitable for investors. This is because of the potential for increased returns. Blue chip funds, as a rule, are restricted to investing only in the shares of the greatest 100 firms in terms of market capitalization. These funds are quite versatile. They may be used toward the purchase of bonds or cash equivalents. This in turn will broaden the investment profile of the portfolio. Investment prospects for blue chips are more diversified. Because of this, the cost of investing in blue chip mutual funds has gone up. Features of a high-quality investment fund Gains that are certain to be made Blue chip funds generate returns in the form of dividends. Blue chip companies are reliable. They provide stability to investors. The investment is certain to provide a steady profit. It will also provide a reliable source of revenue. Possessing a solid credit history Common corporations may easily obtain enough cash to meet their financial obligations. As a result, investors may put a lot of faith in the shares issued by these companies. Possibilities of harm Investing in its shares carries less of a risk. This is because of the reliability of the company’s financial performance. Term of investment Blue-chip mutual funds are ideal for long-term investors. Putting money into these stocks or ETFs may help you get closer to your financial goals. Potential for growth To be considered a blue chip company, a company must have reached its maximum growth potential. Therefore, the value of blue-chip stocks tends to rise steadily over time. Finances and taxes According to Section 80C of the Income Tax Act, the tax rate for short-term goals is 15%. After Rs. 1 lakh, earnings are subject to a 10% tax rate. Advantages of blue-chip funds include: Investment in infrastructure You can potentially make a large sum of money. This can be done by patiently investing in blue chip funds. Investing in a company with a history of success may help you construct a more secure financial future. The stock market is volatile. But this helps to keep things steady. In a nutshell, the goal is to make money. Investing in a blue chip fund is the best way to secure one’s financial future. Durable economic advantage Blue chip enterprises may be able to benefit from an economic moat. This is due to their scale. A large share market and long-term growth that outpaces inflation are both results of the superior performance of blue chip companies compared to other types of enterprises. Money coming in and going out You may cash in your blue chip fund money when you’re in a financial bind and need a way out. You might also try to get a loan backed by shares in a blue-chip mutual fund. Who should invest in blue chip funds and why? Blue chip stocks are the greatest option for anyone looking to hedge their investments against market volatility. This is because of their consistent returns and minimal risk profile. Important factors to think about for your safety Background of the AMC Researching the background of a blue chip firm is a necessary step before investing in its stock. In addition to this, the funds are resilient enough to resist the unexpected withdrawal pressure that is sometimes brought on by significant investors. Investing strategy and methodology Investors should choose funds by the level of personal risk they are comfortable with. It is essential to research the investing philosophy of the fund’s management. This addition must contribute to the accomplishment of that objective. This should be regardless of whether the portfolio is weighted more strongly toward growth companies, value stocks, or a balanced combination of the two types of stocks. Analyzing the ratio of expenses to revenues The expense ratio is a measure of the operating expenditures that are incurred by a mutual fund. If you choose a fund that has a lower cost ratio, you may end up with higher returns throughout the investment. Portfolio of investments held by the funds An investor should understand where a blue chip fund is investing their money. They need to do a comprehensive examination of the fund’s portfolio. The large-cap fund can accomplish its investment goals. This is possible if it pools the resources of both the large- and the mid-cap funds. The benefit of something in comparison to a standard or norm Choose funds that have a track record of consistently outperforming both their contemporaries and the average performance of the market. Examine their performance over the last three to five years. [B-02] Conclusion To potentially achieve your long-term financial goals, you might consider making consistent contributions to a blue chip fund. Investments in solvent businesses may provide profits that eventually surpass inflation. Careful action is required while investing in a blue chip mutual fund. It is necessary to understand the safety issues with blue chip funds that have been brought up.
08-11-2023
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GST

Things You Should Know About Mahagst in India

If you are an entrepreneur, you know the importance of GST. The GST has streamlined the whole tax filing procedure for businesses. Since its inception in 2017, the GST portal has made revolutionary changes in the taxation domain. Now, companies can register for GST, file taxes and refunds, and cancel GST registration online. Following the Union government’s GST portal, Maharashtra has also created a similar portal called MAHA GST. As Mumbai is the country’s financial capital, having a separate website for filing taxes in this region makes sense. So, let’s see everything you should know about Maha GST in India. What is Maha GST? As already mentioned, the Maha GST is the GST portal launched by the government of Maharastra. While the Indian government already has another portal, www.gst.gov.in, the Maha GST portal is specifically for businesses registered in Maharashtra. After the launch of this portal, the ease of doing business has significantly improved in Maharashtra. Furthermore, the Maha GST portal has increased the number of GST taxpayers in Maharashtra. Who should use the MahaGST portal? Businesses operating in Maharashtra need to register on the Maha GST portal. There are also specific registration criteria on the MahaGST website. If the business: It has an aggregate turnover of more than Rs 20 lakh yearly. Supplies goods and products worth Rs 40 lakh in a year. It is available on an e-commerce website and does transactions of goods countrywide. Besides businesses, individuals may also get registered on the MahaGST portal if they are: A casual taxable person who takes a temporary supply of goods through another business or shop. Registered under another taxation system such as VAT, Excuse duty, etc. Validity of Maha GST registration Usually, the Maha GST registration is valid in the state until it isn’t cancelled. However, you may apply for cancellation if you want to withdraw your Maha GST. For non-resident Indians or casual tax-paying individuals, the GST registration is temporary. In this case, the GST registration expires after a certain period. To register on the Maha GST portal, you will need a permanent account number (PAN). This PAN is mandatory for every taxpayer in India, whether they are foreigners, proprietors, partners, or LLPs. How to register on the Maha GST portal? As said earlier, every business registered in Maharashtra must have a GST registration. The complete process is online, from registration to getting a GST number. You don’t need to visit any office during the entire process. Here are the steps you need to follow to register on the mahaGST portal. Go to the official website of mahaGST (www.mahagst.gov.in). The homepage of the Maharashtra GST portal will be opened on your screen. Click on the other acts’ registration. Choose the new dealer registration option. Now click on the new dealer registration under various acts. Read the process and documents required for registration. Now click the “Next” button on the screen’s bottom right. Then, click on New Dealer and select “Next” from the screen again. A dialogue box will appear; fill in the PAN details and follow the instructions. Documents required for registering on the MahaGST portal To register on the MahaGST portal, you will need the following documents: Keep these documents ready before applying for registration. If you are the sole proprietor of your company or registering as an Individual, you will require the following: PAN card Aadhar card Address proof Bank account detail Passport-size photo in JPEG format under 100kb. If you are registering your business in a partnership, including LLP, you will require these documents: PAN card of all partners Aadhar card of all partners. Passport-size photographs, JPEG under 100kb Bank account details of the firm Address proof of primary business location. Address proofs of all partners. If the GST registration is for a Hindu Undivided Family (HUF), you will require the following: PAN and Aadhar cards of HUF and Karta. Photograph of Karta, JPEG under 100kb. Bank account details of the firm Address proof of primary business location. If you are registering as a company, the required documents are: PAN card of the company Memorandum of Association and Articles of Association Account details of the company The company's authorised signatory uses PAN and Aadhar cards. Benefits of registering at Maharastra GST portal There are various benefits to registering at the mahaGST portal. The Maharashtra GST portal lets taxpayers register for GST, file GST returns, and inquire about GSTIN. Moreover, taxpayers can get the latest GST rules and notifications. Once you get a GST registration number from the MahaGST portal, you can create a challan, initiate Mahagst payments, and pay your taxes in a single place. The benefits of the Maha GST portal: Uniform rate of taxes on goods and services throughout the nation. No overlapping or cascading effect of taxes. Composition scheme for small companies and businesses. Easy to comply High exemption limit for small businesses and goods. Transparency in tax filing and returns. The whole process is streamlined and online. MahaGST e payment facility. The composition scheme for small businesses: The government has launched a GST composition scheme for small businesses to simplify the GST filing process and reduce compliance costs. Businesses with an annual turnover of fewer than Rs 75 lakhs are eligible for this scheme. Under this scheme, Maharastra businesses must fill out the CMP-08 form quarterly and GSTR 4 form annually. The composition scheme is annual, and businesses must pay quarterly tax at a certain percentage of their turnover. [B-02] Conclusion: The MahaGST portal is one of the Maharashtra government's most innovative ideas for streamlining the GST process. For businesses, the portal has made it easy to comply with the government's directions and is updated with new notifications. On the other hand, for the government, the portal has reduced tax evasion. The portal has created a win-win situation for businesses and the government.
08-11-2023
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Other

How Intraday Trading Works? Detailed ideas

Multiple online trading platforms make value creation as easy as a click. Are you also looking to dive into the trading world? In that case, intraday trading may be your alternate income creation path. Read on to learn more: [B-01] The process of intraday trading The idea behind intraday trading is to leverage the short-term rise and minimize the fall in the price of the stocks. Each day, the volatility of the market differs. It means that the stock price can either rise or fall, fluctuating in both directions. For investors, the strategy is to capitalize on market movement and make small profits while buying and selling the order. Intraday traders are usually comfortable buying and selling stocks on the same day. There is no fixed guidebook on which stocks are the best to buy. However, stocks with high liquidity are the best players in this kind of trading. These stocks fluctuate significantly during the day due to external circumstances (company valuation, leadership decisions, reputation, new investors, etc.). The basic rule is to buy your orders at a low price and sell them at a high price. On the other hand, you can first sell your orders at a high price and then buy them back at a low price. The core principle of trading remains the same. While you place an intraday trade, you can opt for an MIS (margin intraday square-off) trade, which means the trade can square off on the same day. On the other hand, you can go for a CNC trade (cash and carry), wherein you would need to put up the whole purchase value upfront. In an MIS order, you get the benefit of lower brokerage along with a higher margin. You can even make 4-5 times the money in some cases with high leverage. But, as you start trading, you will determine the best choice based on your preferences. How does intraday trading differ from regular trading? Like most beginners, you also need clarification about how regular trading differs from intraday trading. Technically, there is only one difference between these two. The delivery of the stocks is not the same for both. In intraday trading, the squaring or settlement happens as the market closes. So, the orders you sell will settle against the orders you buy. Due to this, you cannot transfer the ownership of the shares. But, for regular traders, it takes some days. You get delivery of the shares in a few days. However, for regular trading, the shares you sell will not appear in your Demat account after the transaction. It is primarily about time and delivery for both. Intraday is a little risky due to the time and market performance on that particular day. As for regular trading, you can wait for the shares to perform better on other days before selling your order. Is it riskier? The most important question that investors ask is whether intraday trading is riskier. It is all about practice and building your acumen over time. Initially, it is challenging since you have only five to six hours to start your trade and square it off. However, to minimize the risk, you can constantly track the growth and fall of the shares. In most cases, shares are most volatile during the first hour when the market opens and the last hour when the market closes. The hours in between have lesser activity as compared to these peak hours. If you cannot square off the position by 3:15 pm, it is best to square it off at the best price. Expert tips for you Many people think that intraday trading is a game for experts. But, with practice and guidance, you can also become an expert. The following expert tips will help you grow your wealth and have an additional source of income. You need to enter and exit at the correct time: Choose a comfortable amount to enter and exit as soon as you see decent growth in the beginning. The greed for more can make you lose money. Invest extra money from savings, not from necessary expenditures: Intraday trading comes with its fair share of risks. Ensure that you invest an amount set aside for additional value creation rather than out of necessity. Keep analysing your performance: One way to succeed in intraday trading is by keeping track of your performance. This way, you will know which decisions to make and which to miss the next time you buy or sell. Do not overtrade: The share market sometimes trends in different ways. The best way to go about intraday trading is to trade a limited number of stocks, at least in the beginning. So combine your understanding with these intraday trading tips and start investing your money right away. [B-02] Conclusion Keep a small amount for intraday trading in the initial phase. This will help you get a proper idea of how it works. As you gain experience and become more familiar with the market, you can begin investing large sums and increasing your wealth. Find the best tips on finance and get the right deal for your investments with loans from Piramal Finance. They offer many types of loans at attractive interest rates. There are many articles and blogs on the website that will help you learn more about the world of finance.
08-11-2023
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5 Things to Consider When Opening a Children’s Savings Account

Many parents tend to prefer opening a children’s savings account for the child’s secure future. Saving money regularly for a prolonged time will help you build a big corpus for your child. This will provide them with a safe and promising future and help them cover their higher education fees and other miscellaneous bills. In addition to that, it will make your child wise regarding financial matters. Nonetheless, there are some things that you should know before opening a children’s savings account for your kid. There are plenty of options available at different banks and non-banking financing companies, or NBFCs. In addition to different banks, there are several government schemes and programmes that provide these facilities. So, you may have the privilege of choosing from a variety of options. But it gets tricky at times. This article will help you navigate through a children’s savings account, its benefits, and five things that you should know before jumping right into opening one for your kid. [B-01] What exactly is a children’s savings account, and why is it opened? A children’s savings account helps you save money for your child’s future to cover mostly all the education-related expenses. This feature of saving money for kids was introduced by the Reserve Bank of India in early 2014. You can open a savings account for your child who has yet to turn 18. These days, you can also apply for a savings account for children who are below 10. However, these kids’ savings accounts are to be supervised by the parents and not by the kids themselves. The features of a children’s savings account have similar features to those of regular savings accounts, like email services, balance inquiries, ATM cards, withdrawal limits, etc. After the age of 18, the child no longer has access to the children’s savings account unless it is converted into a regular savings account. What are the benefits of opening a children’s savings account for your kid? There are several benefits to opening a kid’s saving account for your child, especially if there are many years left until adulthood. Helps your child learn the basics of money: When your child sees you saving money for a savings account, it learns the basics of money and finance. In addition to that, your child learns how to make transactions after seeing you do so. Building the habit of saving: Using a children’s savings account to save money and conduct transactions helps your child build the habit of saving. This is a very creative habit. It helps your child save money in the future as well. Usage of ATM cards: If you are a parent, you can easily get an ATM card for your child by filling out an application form. Since you, as a parent, will be handling the child’s ATM card, you are expected to make withdrawals and transactions. Your child will eventually learn how to use ATM cards as you conduct transactions. Knowing the true value of money: When you cover all your child’s demands, he barely knows the actual value of money and what money is capable of. However, when he knows the importance of saving money, he learns the true value that money holds. Preventing unnecessary splurging: When your child knows the true value of money, he starts using it rather than craving expensive gifts and toys. This habit is one that every child should learn before they turn 18. Carrying out education-related expenses. You can easily carry out all education-related expenses using a children’s savings account. On top of that, by saving money periodically, you can also build up a huge corpus at the time of maturity. This will further help you fund your child’s higher education fees. Realising the importance of investment: No matter how strong your financial status is, the best way to keep it strong is by multiplying your finances. And what better way to do that than to invest regularly? Having a children’s savings account lets your child know the true importance of investment. Five things you should know before opening a children’s savings account Now that you know what a kid’s savings account is opened for and what benefits it provides, it is important to know some things before opening an account. Keeping the age bar in mind: There are generally two categories under which banks allow you to open a children’s savings account. One category is for children who are under 10 years old, and the other is for children who are between 10 and 18. So, when you open an account for a child below the age of 10, you have to link that account with the parents’ savings account because the child is not eligible to operate the account. However, if the child is more than 10 years old, then the child is allowed to operate the account. Knowing about internet usage Your child can also conduct online transactions if he is more than 10 years old. However, parents have to provide a mandate to the bank to issue a login ID and password for online transactions. Know about the fund transfer options Before you stumble upon opening a children’s savings account, make sure that the bank allows you to debit money from the parent’s account to the child’s account. Be aware of spending limits: You should also be aware of the spending limits of the kid’s savings account. Many banks have a daily spending limit of about INR 1,000 to INR 2,500. While some banks allow up to INR 5,000, others do not. Knowing about the minimum balance: The Minimum Average Balance, or MAB, is the necessary amount that every child’s savings account must have to avoid penalties. The minimum account balance for most of the children’s savings accounts ranges from INR 2,500 to INR 5,000 for many banks. [B-02] Conclusion Having a children’s savings account for your child is a great start for a better future. It builds a large corpus. It ensures financial security. It helps your child learn the value of saving. It also makes your child more decisive regarding financial matters. However, before opening a kid’s savings account, you should be aware of certain things. These are different rules for different age groups: the minimum average balance, the online transaction facilities, etc. If you want to know more about children’s savings accounts and other financing schemes, you can visit Piramal Finance.
08-11-2023
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Cards

Things You Should Know About Virtual Credit Card And Its Working

While the use of online transactions is gaining popularity, we must note that online fraud is also on the rise. It’s not uncommon for online merchants to be targeted by hackers who want to steal your data and identities. A virtual credit card (VCC) can prevent online payment fraud by encrypting sensitive information. [B-01] What is a Virtual Credit Card? A VCC is a one-time-use card that allows you to make online transactions. A VCC is the best way to make a transaction online without giving out your real credit card number. It is a safer and easier-to-use solution for making quick and easy electronic payments. As the name suggests, this card only exists online and is connected to your actual credit card by a random 16-digit number. A VCC can have a spending cap, an expiration date, or even be restricted to a particular merchant. You may be confident that your primary credit card account is secure and fraudulent purchases are avoided as a result. Features of a Virtual Credit Card In addition to being essentially virtual, the VCC includes the following attributes: VCCs shield you from data leaks from an unsecured network connection. Credit cards enable people to protect their identities online. VCCs may be made using the bank’s online banking facility. There is no requirement for any extra purchases to acquire a VCC or debit card. VCCs don’t require physical authorization from credit card companies. All you need to do is utilize your smartphone to make transactions via a VCC or debit card. The VCC is intended for single use and is valid for a minimum of 48 hours. It is important to note that VCCs are only available to primary cardholders. Things You Should Know About a Virtual Credit Card The most crucial characteristics regarding VCC that make them one of a kind and makes them secure and efficient are: VCC holders can enjoy a credit limit for credit cards that is a minimum of Rs. 100 and a maximum of Rs. 50,000 per day. VCCs can be used for up to 48 hours. However, the validity of their cards depends on the bank offering the service and could be different. Customers can make only one transaction using the VCC, therefore, it is best to use the whole amount in the card. VCCs are only available to the primary cardholder and not to the secondary cardholder. VCCs don’t exist in any physical form, therefore, the risk of cloning cards is much lower. Following the use of the card, if there’s any remaining balance on the card, it will be credited to the customer’s account. The VCCs may be created using the debit card of the customer if the client does not have a credit card. E-wallets can also be set up and created on the savings account. There are a variety of private websites, too, that provide virtual cards. The most significant advantage of VCCs is that they can be completely managed by the user in terms of validity, use, and credit limits. Benefits of Virtual Credit Card VCCs offer many advantages that are similar to those of traditional credit cards. VCC payment options allow customers to manage their finances, optimize their spending, and secure the assets of their business. Fraud protection: VCCs safeguard your personal information by restricting the amount disclosed during the transaction. This method is particularly secure because the maximum spending capacity is established and the money assigned to transactions is only for one transaction. These VCCs expire after a brief period. Limit spending: VCCs offer you the control that traditional credit cards don’t offer. You can freeze your card at any time you want. You can also establish an amount of spending or a deadline for when the card will close or shut down within a few minutes of the first virtual payment. This will allow you to control your budget and limit the amount that your employees can use the card. Management of subscriptions: VCCs are an easy method of keeping track of all your subscriptions online. You can create a VCC to cover each subscription and limit each vendor or transaction to one virtual card. You’ll be able to keep track of all your subscriptions in one location and will be protected if your credit card information is stolen. You can also confirm if you’ve been overcharged. How Does a Virtual Credit Card Work? A VCC allows you to make online transactions only; hence, it involves some steps to complete the transaction. Enter the VCC number. Input the card’s validity date. Send the OTP to your registered mobile number. Once you confirm the transaction, the payment will be processed. The same transaction will appear as a credit card transaction on the statement in the same way as a regular credit card transaction will appear. [B-02] The Bottom Line VCCs are superior in many ways compared to conventional credit cards. They reduce the chance of any fraudulent transactions on your credit card since they don’t expose your credit card information to anyone else but you. In addition, VCCs are only valid for a specific number of transactions, which means they can be destroyed in a matter of minutes. The cards are visible to the user, so there is a low risk of fraud. To learn more about VCCs, contact us at Piramal Finance.
08-11-2023
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Gold Loan

How gold loans became popular?

Gold’s importance has grown over time because it is easy to use as a way to exchange money and because it is a reliable store of value because its price rarely goes down. Even though it’s not the most common way to get a loan through a bank, the gold loan industry has grown rapidly over the last two decades and has become a significant part of the organised financial sector. Unlike other ways to get money, gold loans have proven to be very useful in times of trouble. [B-01] How Do Gold Loans Operate? The fundamentals of some of the best gold loan offers are straightforward. A gold loan requires the customer to provide the gold to a lender in the form of coins or jewelry. It is possible to borrow up to 75% of the value of the pledged gold products. An Indian citizen who possesses items containing gold is eligible to apply for a gold loan. When you present the gold item to the lender, an assessor will look it over to make sure of its carat and purity. As soon as you agree to the loan balance and any associated fees, you may start the paperwork. After accepting your loan, the lender will retain the gold and deposit the funds into your bank account. The loan balance plus the lender’s interest should be repaid during the repayment procedure. A substantial loss or price decline for gold is often not very likely. Lenders are motivated to lend money because gold’s value is guaranteed to rise over time, unlike the other assets that can be used as security. Reasons Why Gold Loans Are Growing in Popularity The reasons for gold loans becoming popular are given below: Less Expensive than Personal Loans People who need money quickly often take out personal loans. But because a personal loan is not secured and doesn’t need anything as collateral, the lender has to make up for the risk by charging a higher interest rate. When you get a gold loan, you’ll keep your gold as collateral. This makes it much less risky for the lender to give you a loan. So, the best gold loans are less expensive than personal loans. Faster Processing When you need money quickly, it might not always be a good idea to go through the trouble of taking out other loans. The best gold loans are known for being easy to get and quick to pay out. The majority of lenders only need some time to approve the loan if all of your paperwork is in order. Minimum Eligibility Requirements Getting a loan against gold is easier than getting a personal loan or a loan against property because there aren’t as many rules about who can get one. Lenders turn down a lot of loan applications because the borrowers don’t make enough money or have a good enough credit score. But a gold loan doesn’t have these kinds of rules. This makes it an excellent option for people with bad credit, who are just starting out in their careers, or who are unemployed. No penalty for Paying off the Loan Early or Foreclosing Most other loans have penalties if you need to pay off the loan early or let it go to foreclosure. People pay off loans early or let them go to foreclosure to save money on the interest they will have to pay if they let the loan run its full term. This fine could significantly reduce your savings. But most lenders don’t charge these kinds of fees for gold loans. You can pay off the loan in full or in part at any time. No Fees for Gold Security It is risky to keep your gold at home, so the majority of people store their unused gold in deposit lockers. For storing your gold securely, the banks charge you a yearly fee. In the event that you borrow money on the gold, your lender will keep it safe without charging you any extra fees. Consider this a way to store your gold without having to pay a fee for it while also earning money against it. Flexible Repayments The best thing about gold loans is how flexible the payments are. You don’t have to pay monthly instalments, pay back the loan based on how much money you have during the term. You can choose to only pay interest each month and pay off the loan at the end of the term. You could also pay the whole amount at the end of the payment period. Extended Repayment Tenure The best gold loans have a longer time to pay back. The repayment tenure can be as long as 3–4 years. This allows you to plan your payments after you’ve taken care of the emergency. Still, paying back the loan as soon as possible is the best way to save money on interest. No Limits on the End Use When talking about whether or not a gold loan is a good idea in an emergency, the fact that it can be used for anything is its most significant selling point. This means that borrowers can use these funds for various financial needs. It could be for personal costs, medical emergencies, or work-related needs. Good Interest Rates The interest rates on the best gold loans are low. Gold is reliable collateral for anyone. In India, interest rates on gold loans are usually between 12 and 14% per year, which makes them an affordable way to borrow money. [B-02] Conclusion Due to the ease of obtaining short-term loans with attractive terms like low interest rates, flexibility of use, and quick disbursal, gold loans have emerged as the market segment with the fastest growth. Since gold jewellery is traditionally purchased and given as gifts for weddings, Diwali, and Dhanteras, most people keep a supply of some gold jewellery on hand. This can be turned into money and used as collateral for a loan. For more details related to the popularity of gold loans, you can visit the Piramal Finance website and explore their products and services.
08-11-2023
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All You Need to Know About the Meaning, Benefits and Interest Rates of Sukanya Samriddhi Yojana

Do you wish to have some savings for a bright future for your daughter? If yes, then Sukanya Samriddhi Yojana is the right scheme for you. This deposit scheme is a part of the Beti Bachao, Beti Padhao campaign of Prime Minister Narendra Modi. The movement is now gaining much popularity among families with a girl child. The Sukanya Samriddhi Yojana can be quite helpful for families with a girl child. The scheme’s main aim is to secure the child’s future. The scheme provides incentives for saving purposes. It also has a wide range of tax benefits. [B-01] Read further to know more about the Sukanya Samriddhi Yojana details. What is Sukanya Samriddhi Yojana? You must apply for the scheme if you wish your daughter to have a secure financial future. The government backs the program under the Beti Bachao Beti Padhao scheme. Both schemes aim to ensure the welfare of girls. The interest rate for the scheme is 7.6%. Furthermore, it offers tax benefits under the 80C of the Income-tax Act, 1961. As per the policy, the parents can open accounts for their daughters. If the parents have two daughters, they can open up two accounts. However, if they have more than two daughters, the parents will be restricted from opening a third or fourth account. The Sukanya Samriddhi Yojana accounts will be valid for 21 years or till the age of 18 years of the girl or even marriage. Your savings under the account can help you sponsor the child’s marriage or education. You need to visit the post office or bank to open the account. Furthermore, you will also be able to receive further Sukanya Samriddhi Yojana details at the respective offices. Interest Rates for Sukanya Samriddhi Yojana The interest rate on Sukanya Samriddhi Yojana is 7.6% p.a. Before April 1, 2020, the interest rate was 8.4% p.a. Parents who had deposited the amount between December 12, 2019, to March 31, 2020, will still be eligible for 8.4% per annum. Nonetheless, there are certain conditions that you will need to consider. You will be eligible for early payable interest. The government will decide what the interest rate is. Furthermore, they will also be eligible for change across every quarter. The interest rate will be credited only at the financial year’s end. If the daughter becomes an NRI, they won’t be eligible for the interest rate. Since its inception, the interest rate for the Sukanya Samriddhi Yojana has constantly changed. To understand more about it, you can refer to the table given below: YEARRATEApril 2020 – Present7.6% p.a.1 January 2019 – 31 March 20198.5% p.a.1 October 2018 – 31 December 20188.5% p.a.1 July 2018 – 30 September 20188.1% p.a.1 April 2018 – 30 June 20188.1% p.a.1 January 2018 – 31 March 20188.1% p.a.1 July 2017 – 31 December 20178.3% p.a.1 October 2016 – 31 December 20168.5% p.a.1 July 2016 – 30 September 20168.6% p.a.1 April 2016 – 30 June 20168.6% p.a.1 April 2015 – March 31 20169.2% p.a.3 December 2014 – March 31 20159.1% p.a. Sukanya Samriddhi Yojana eligibility To open a Sukanya Samriddhi Yojana for your child, you must be familiar with the eligibility rules. Given below are the eligibility criteria: The legal or natural guardian of the girl child will open the account under their name till the time the girl attains ten years of age. Under the name of the girl child, the depositor will be able to operate only one account. The parent will be eligible for only two accounts for their daughters. The parent can only open a third account for their daughter if the children are twins. The girl should be an Indian resident. If the child turns into an NRI, they will no longer be eligible for the scheme. Documents required for Sukanya Samriddhi Yojana You should submit the right documents. This is a government-backed scheme. So you must check the criteria thoroughly. Mentioned below are the documents that you need to open a Sukanya Samriddhi Yojana account: The parent must fill out the SSY accounting form. Submit the birth certificate of the girl child when opening the bank account. The parent must submit a personal certificate if multiple children are born within one birth order. The depositor or parent must submit the ID and address proof when opening the Sukanya Samriddhi Yojana account. The bank or document will also request certain records you must submit when opening the account. Benefits of Sukanya Samriddhi Yojana Opening a Sukanya Samriddhi Yojana account is beneficial. Some of the common benefits include the following: The interest amount that is generated will have an exemption from tax. You will be eligible for the tax benefits on the maturity amount. The tax benefits will be up to Rs 1.5 lakh within Section 80C of the Income Tax Act, 1961. This is concerning the contributions that you made towards the scheme. How to open Sukanya Samriddhi Yojana account? To open the Sukanya Samriddhi Yojana, you must visit a bank or post office. However, given below are the steps you must follow to open the account: Fill the Sukanya Samriddhi Yojana form. Submit the form to an authorized bank or nearby India Post Office. Attach all the supporting documents for KYC purposes. You can deposit between Rs 250 and 1.5 lakhs to open the account. After opening the account, you will get the passbook to keep a track record of the account and transactions. [B-02] Conclusion Sukanya Samriddhi Yojana is a government scheme. It offers interest rates of up to 7.6% on fixed deposits. This scheme is designed to help the poor save and achieve financial independence for their child. As parents, you need to ensure that you are following the guidelines given by the government. Before opening a bank account, you might as well visit the bank account to understand the eligibility criteria. Once you are eligible, you can open a fixed deposit account with the government and enjoy this scheme’s benefits. To understand the Sukanya Samriddhi Yojana details, you can reach out to experts at Piramal Finance.
08-11-2023
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