More articles for you

Your one stop place for everything related to finance and lending

Know More

All about convertible debentures, it’s meaning and features

Investors looking to diversify their portfolio with minimal risk for their investment often opt for convertible debentures. Convertible debentures are debt investment instruments that allow companies to raise money by selling bonds, which can be converted into shares on a fixed date. [B-01] On the investor’s end, these are popular debt instruments thanks to their low-risk profile. It goes without saying that if you are a risk-averse investor, convertible debentures can be a good option. They can help you keep your money secure and earn a fixed rate of interest, all while giving you the option to participate in the company’s future performance. In this article, we will provide a detailed understanding of convertible debentures. Keep reading! Debentures and Their Different Kinds Let us start at the very basics and understand what debentures are. Debentures are a type of debt instrument issued by companies to raise capital. While debentures are mostly issued by companies to raise capital, government or quasi-government agencies may also issue them. You will find two kinds of debentures in the market: convertible and non-convertible. Convertible debentures can be converted into equity shares or other securities at the option of the company or the debenture holder, while non-convertible debentures do not have this conversion option. What is a convertible debenture? Convertible debentures, or CDs, are a type of debt security that allows you to convert the principal amount into common shares or other securities after a specified period. If you do not want to take any risk with your money and have a longer time horizon for your investment, these debentures are a great choice. It offers flexibility as well as upside potential. So, what are your earnings when you invest in a convertible debenture? You will get fixed interest at a rate conveyed to you at the beginning. This interest will be paid to you until the maturity of the debenture. Upon the expiration of a specific period, you will be given the option to either take your principal back or convert it into the company’s stock. This specific period will be conveyed to you at the beginning of the purchase. However, due to their convertibility, convertible debentures have lower interest rates than typical bonds. Therefore, this instrument is beneficial for you, if you want to enjoy the option of conversion to shares in the future. If you are a risk-averse investor focused on earning interest and keeping your investment safe, you might want to look at bonds instead. How Does a Convertible Debenture Work? Convertible debentures typically have a term of five to seven years, after which they can be converted into shares. The conversion ratio, or the number of shares per debenture, is set at the beginning itself, when the paper is issued. For example, let us suppose ITC Ltd. issues 100 convertible debentures with a conversion ratio of 1:10. Hence, each debenture can be converted into 10 shares. Thus, if you buy 100 convertible debentures, you will receive 1000 shares of ITC Ltd. on a specific date. This conversion is done at a predetermined price, which is also communicated while issuing the debenture itself. If the company’s stock price rises above the conversion price (the price at which the debenture is converted into shares), it will be immensely profitable to you. You can convert your money into shares at a profit. However, the reverse is also true. If the stock price falls below the conversion price, you might have to face a loss if you plan to sell the shares immediately. This is one of the risks of investing in CDs. You should hold on to the stocks and wait for the price to rise if you are not in a hurry to receive your investment back. Another method by which you can earn from a convertible debenture is by selling it in the secondary debt market. Due to their convertible nature, these instruments sell at a higher price in this market than their non-convertible counterparts. What is a non-convertible debenture? A non-convertible debenture, commonly known as an NCD, is a debenture that cannot be converted into equity shares of the company issuing the debenture. Non-convertible debentures typically have a higher interest rate than CDs and have a more extended maturity date. As a non-convertible debenture investor, you can receive periodic interest payments, known as coupons, until maturity. At maturity, you will receive your principal back. There’s more! Some debentures may give you the option to invest your interest payments in cash or purchase additional NCDs instead. This option is known as “rolling over.” Rolling over is a great opportunity for you to compound your returns and earn more money. However, keep in mind that this also increases their risk because you have to commit to holding the debenture for a longer time. Features of a Convertible Debenture When issuing a debenture, you first need a trust indenture. A trust agreement is a contract that governs the relationship between the issuing corporation and a trustee who manages the investor’s interests. Interest rate One of the first things you need to check before investing in a convertible debenture is the interest rate or coupon rate. This is the interest the company will pay to you as a debenture holder of the company. CDs may have a fixed or floating coupon rate. In some cases, a floating rate is tied to a benchmark, such as the yield on a 10-year Treasury bond. Maturity date The second important feature of a convertible debenture is its maturity date. As the name suggests, this is the date on which the company will repay the debenture or convert the debenture into shares. You should check this date before investing so that you know when you can expect to receive your principal back. Credit rating The next critical feature is the company and debentures’ credit rating. Every company strives to maintain a good credit rating because this determines the demand for debt papers issued by them. This credit rating is assigned by a reputable credit ratings agency such as CRISIL, CARE, ICRA, and others. [B-02] Investors are always looking for papers issued by companies with high credit ratings. Moreover, each debenture also has a specific credit rating. Hence, you need to check the credit rating of the company as well as the debenture before investing your money. Debentures have a long history in the financial world and are commonly used to fund the expansion and growth of companies. They can be a good addition to your portfolio and help you diversify your assets.
08-11-2023
Read More
Other

Steps to Making Money in Intraday Trading

How can you earn a living from intraday trading? Although success in intraday trading is never certain, following these ten measures dramatically improves your chances of doing so. Below are a few intraday trading strategies that will help you. [B-01] 10 Intraday Trading Tips To Get You Started Learn the rules governing the industry In a nutshell, it is the structure upon which intraday trading strategies is built. It lays forth the rules and constraints that apply to your intraday trading. Consider your risk tolerance, the rate at which your funds may be depleted, and the potential rewards from taking risks. Locating stocks for intraday trading strategies, narrowing attention to stocks, and executing and monitoring trades are all things that will be spelled out in the trading rules. The goal is to abide by your industry’s guidelines at all times strictly. Determine how much of a loss you are prepared to accept Indicate the maximum amount you are willing to lose before gambling. When you reach this value, you must pull back from trading and go back to the drawing board. It would help if you also chose a daily loss limit for yourself. If this happens within the first hour, you will lose access to your terminal for the remainder of the day. Find out your risk-reward ratio by calculating the distance between your stop loss and your profit objective. You should always use a stop-loss order while trading Stop losses must be placed on both long and short trades. Stop-loss orders may be placed around key technical levels of support and resistance or at a price you’re comfortable taking a loss. However, after the trade has been made, it is too late to enter the stop-loss. Your position must be liquidated once the stop loss is hit. There is no use in trying to average out your trade since the chances are against you. Set attainable financial goals and stick to them One of the best intraday trading tips is to set financial goals. Whether you’re going long or short on the intraday trading market, you need to have a plan. To ensure a timely cancellation of the opposite leg of the order when the stop loss or profit objective is met, these profit targets must be logged in the system as part of the bracket order. Only add profit targets afterward, although a trailing stop loss might be used while riding the trend. Trade in hearsay and gossip While this may not appear important at first, trading in market hearsay is one of the most crucial intraday trading strategies. Most of the time, an announcement’s effect is included in the price or leaves little room for you to negotiate. As a result, you’ll need to base your entry into the trade on your best-educated guess and then hope to reap the rewards after the real news has been out. Maximising the alpha from your transactions is best accomplished by following market speculation. You should invest only a small amount in rumours and suggestions from the market. At the same time, you should keep an open mind and an ear to the ground. Take the initiative to create your charts Do not believe that technical charting is so complex that only a few people can understand it. With a little study and practice, you can interpret common technical chart indicators such as: Supports and resistances Bollinger bands Exponential moving average (EMA) breakouts Retracements, etc The most important factor in making money intraday is learning to read charts. Only have a few opportunities for jobs at a time In the world of intraday trading, this is a common blunder. When you have a lot of open positions, you can only keep tabs on so many of them at once in terms of fundamentals, charts, and news flows. One way to lose money throughout the trading day is to have too many intraday trading tips trades open simultaneously. Only have up to four or five vacancies at any one moment. Forget about making any moves if the market needs to be more clear As a trader, you have three primary options: buying, selling, or standing still. Despite appearances, it is possible to profit in intraday trading even if you do nothing. When the market becomes too volatile, it’s best to stay away from the water altogether rather than risk being caught in the waves. If you save up, you’ll have more money to spend when good possibilities present themselves. Never attempt to trade counter to the market’s trend Those who attempt to trade like value scavengers daily are the ones who end up losing money. This is what a basic analyst does for a living. The trend is your best buddy as a day trader. The market is attempting to tell you something when it exhibits a pattern. Paying attention to this data and making sound trading decisions is up to you. You will be on the right track if you enter intraday trading with the mindset that the market is always smarter than you are. Keep an accurate record of your deals in a trading notebook A trading notebook is not only a record of purchases and explanations; it also evaluates results daily. You should keep accurate records of your trading failures and any ideas for fixing them. You may use this to hone your intraday trading tips and move closer to financial success. [B-02] The Bottom Line Those who trade daily with the attitude of a “value scavenger” are condemned to fail. For a fundamental analyst, this is just another day at the office. The trend is your best buddy if you’re a day trader. A pattern in the market is a message from the market. It is up to you to carefully consider this data when you make trading choices. You will be on the right road if you approach intraday trading with the mindset that the market is always wiser than you. If you wish to learn more about intraday trading strategies, check out the Piramal Finance website right away.
08-11-2023
Read More
Personal Loan

Important Benefits of Used Car Loans

Piramal Finance’s used car loans have recently grown popular as a result of increased demand in the car sector and the demand for simple credit financing choices. Simply explained, a used car loan is a loan that you may get from several banking firms to buy a used car. The loan sum is set by many factors, including the car’s history, condition, and the lender’s value. The interest rate on a used car loan is set by two factors: your credit score and the value of the car. Your interest rate will be lower if you have a good credit score. Securing a Piramal Finance used car loan is now a simple process; you may have the loan money sent into your bank account from the comfort of your own home. A used car loan is easy and simple to get. You must determine if you meet the standards for getting a used car loan. Only a few needs must be met in order to be eligible for financing a used car. The Piramal Finance loan is open to salaried workers, self-employed persons, and farmers. At the time you apply, and at the end of the loan term, you must be between the ages of 21 and 65. The minimum net wage should be Rs 15,000, or the net profit must be at least Rs 150,000 each year. [B-01] Benefits of a Used Car Loan from Piramal Finance Getting a used car loan to pay for your dream car is now quite simple. With Piramal Finance’s used car loan, you can benefit from a simple process, faster loan approval, and total freedom. The top five perks of a used car loan are as follows: Flexible Repayment Choices Piramal Finance allows you to determine your loan sum, payback term, and EMI period. In this manner, you can manage your budget and buy a used car when it is most suitable for you. Attractive Interest Rates Because the cost of a used car is less than that of a new one, Piramal Finance offers low-interest car loans for buying a car. The used car interest rate charged by Piramal Finance is highly tempting, which allows you to prepare your budget before finalising the purchase of a used car. Fast Approvals Buying a used car is now quite simple since you can complete the loan process online. The loan approval and payment processes are quite rapid and easy, making the whole loan procedure very simple. Simple Paperwork The paperwork needed to get a used car loan is quite basic and modest, making the paperwork process simple. The paperwork needed for loan requests differs depending on the funder. Valid identity verification, salary proof, property proof, valid address proof, and picture proof are usually required when asking for a used car loan from Piramal Finance. Small Down Payment Some banking firms give 100% funding on used cars, generally known as a loan on used cars with no down payment. You are likely to get the whole loan amount if the value of the used car is less than the loan sum. How to Pick a Used Car Loan? Here are a few elements to check while looking for a used car loan: Interest Rates Like any other loan, one of the most vital aspects of a used car loan is the interest rate. Interest rates on used car loans are higher than those on new cars and may vary from 10 to 17 percent. In contrast, personal loans might have interest rates ranging from 10.5 percent to 22 percent. Further, personal loans assist you in financing the total cost of the vehicle. When looking for a used car loan, compare the interest rates given by Piramal Finance. Before making a selection, compare it to the interest rates on personal loans. Picking the Loan Sum When looking for a car, consider how much you would have spent on a new vehicle and then seek similar types of used cars. Keep your loan sum modest and refrain from extending your budget to get a high-end car whose used price is fair. Note that high-end cars need more upkeep. As a result, it is vital to avoid taking out a large used car loan. Make a Greater Down Payment After deciding on the loan sum, it is vital to make a sizable down payment. Used car loans can offer you credit for up to 85% of the automobile’s purchase price. However, keep in mind that used car loan rates of interest are on the high end. As a result, you will wind up paying more interest. In addition, a used car will be less costly than a new car. Make as large a down payment as possible when applying for a used car loan. This will keep your EMIs modest. Picking a Tenure Most used car loans have a maximum duration of 5 years, while certain lenders may offer up to 7 years. Yet, make it a goal not to extend your term too much. Because the interest rate is higher, you will end up paying more in interest on a loan with a longer term. Try to limit your loan term to under 3 years. Calculate Your EMI with a Loan Calculator When getting a Piramal Finance loan, it is vital to figure out the monthly EMI. The EMI outgo must be such that you can pay those payments each month without affecting your budget. You may use a debt calculator for this. Enter your loan sum, duration, and interest rate, as well as the calculator, which will calculate your EMI. [B-02] Conclusion Using a Piramal Finance loan to pay for a used car might present you with a plethora of perks. One of the main perks you will enjoy is a lower car price. A used car will always be less costly than a new one. As a result, your loan’s principal will be reduced. As a consequence, your auto loan interest rate will be lower. Another key advantage of buying a used car with a loan is that you may still benefit from a car loan tax deduction. However, keep in mind that the auto loan tax deduction is only applicable for cars used for business purposes under Section 80E of the Income Tax Act of India. If you want to know more about used car loan rates, visit Piramal Finance. You may also explore their products and services.
08-11-2023
Read More
Know More

Earn High Regular Returns with RBI Floating Rate Bond

Are you looking for a secure and profitable investment option? RBI Floating Rate Bond is the right choice for you. This type of bond offered by the Reserve Bank of India (RBI) allows investors to earn a high, regular return over the long term. Investing in RBI Floating Rate Bonds is a great way to diversify your portfolio and enjoy a steady income stream. Investors get a regular return on their investment while enjoying the security of government-backed securities. The bonds have a fixed tenure, and the principal amount is returned at the bond’s maturity. Additionally, interest earned is exempt from tax. With RBI Floating Rate Bonds, you can rest assured that your hard-earned money is safe. This article will also discuss the features and eligibility criteria for floating-rate bonds. Also, you will learn how you can earn more with RBI floating-rate bonds. [B-01] What is a Floating Rate Bond? A floating rate bond is a type of bond where the interest rate is not fixed but instead fluctuates with the market. The interest rate on these bonds is often tied to an index, such as the prime rate or the London Interbank Offered Rate. Floating-rate bonds can offer a higher yield than fixed-rate bonds since the interest rate will increase if market rates rise. However, these bonds also carry more risk, as the interest rate will decrease if market rates fall. Whether or not a floating rate bond is right for you will depend on your investment goals and risk tolerance. A floating rate bond may be a good option if you are looking for a higher yield and are willing to accept the risk of fluctuating interest rates. What are the features of an RBI Floating Rate Bond? The Reserve Bank of India (RBI) issues a floating rate bond with a floating interest rate. This bond interest rate is linked to the repo rate, at which the RBI lends money to banks. The main features of RBI floating rate bonds are as follows: The interest rate is based on the repo rate set by the RBI. Every six months, the interest rate is reset. The bonds have a 7-year tenure. The bonds are issued in denominations of Rs. 1000, Rs. 5000, Rs. 10000, and Rs. 50000. The bonds are issued in both physical and dematerialized forms. The bonds are eligible for statutory liquidity ratio (SLR) inclusion. The secondary market does not allow the trading of bonds. What are the eligibility criteria for investing in RBI Floating Rate Bonds? The RBI floating rate bonds will have a tenure of 7 years and carry a coupon rate that you will reset semi-annually. The RBI has set the following eligibility criteria for investors who wish to subscribe to the bond: You should be a resident Indian. Your age should not be less than 18 years, and you should have a bank account with a scheduled commercial bank. You should have a dematerialized account with a depository participant. What are the documents required to buy an RBI Floating Rate Bond? You should have the following documents while applying for an RBI floating rate bond: Firstly, you’ll need a valid PAN card and an Aadhaar card. This requirement is to ensure that you are a legitimate investor in India. You’ll also need to provide your bank details, such as a bank passbook or a cancelled cheque. This is for periodic payments and to ensure the safety of your money. Finally, you’ll need to fill out the application form and provide proof of income, such as your salary slips or an Income Tax Return. Once you have all the required documents, you are ready to invest. How can you buy an RBI Floating Rate Bond? If you want to invest in the RBI Floating Rate Bond (FRB), this guide will help you. Follow the steps mentioned below to buy FRB. Fill out an application form to become an RBI bondholder. To complete the form, provide details like your name, address, and bank account information. After submitting your application, you’ll have to wait for it to be approved. Once approved, you’ll be able to purchase the bonds! You can do this through a bank or a broker. When you buy the bonds, you’ll need to specify the amount you want to purchase, the date you want the bonds to mature, and the coupon rate you want to pay. Finally, you’ll need to make the payment on your bonds. After the payment has been processed, you’ll receive your bonds, and the interest payments will start accruing. Why invest in an RBI Floating Rate Bond? Purchasing an RBI floating rate bond is advantageous for the following reasons: The bond is issued by the Reserve Bank of India and carries an interest rate that fluctuates with the market. This means that you can earn more if the interest rate goes up, and you won’t be hit if it goes down. The bond provides more liquidity than fixed-term bonds, as you can sell it anytime. Another great thing about this bond is that the interest is paid out more frequently than on other bonds. This means that you can get better returns by reinvesting your earnings. [B-02] Conclusion Investing in RBI Floating Rate Bonds can help you earn high regular returns. These bonds are backed by the Reserve Bank of India, meaning your money is secure. Investing in RBI Floating Rate Bonds is the best way to diversify your portfolio and earn high, regular returns. Piramal Finance is the perfect place to go if you’re looking for great savings and loan offers. They offer a variety of banking and finance products, including an RBI floating rate bond. Further, if you want any information related to any financial product, you can check out the Piramal Housing Finance website. So what are you waiting for? Visit the website today and learn more about the amazing offers available.
08-11-2023
Read More
Investment

In Which SIP Should Beginners Invest?

Today, many people are investing in stocks. But even if you have a tonne of money to buy and sell, you may not know where to start. This article will help you find the best place for your first investment. In the world of investing, mutual funds investment plans have been a popular option for individuals. They are unique because they are invested in many different stocks to maintain stability and ensure overall growth. Despite their variety, there is generally one goal: to maximise your return on investment. However, this doesn’t happen overnight or without much effort or due diligence (no one invests in something they don’t understand). It can be difficult to know where to invest your money. You want the best return possible, but also want to ensure that your investments are secure for the long haul. So how can you make an informed decision? [B-01] Investing in SIPs: One strategy that might work for you is investing in SIPs (Systematic Investment Plans). These plans enable investors to buy small amounts of stock and reinvest dividends. They’re simple and tax-efficient, and they’re a great way of diversifying your portfolio without having to worry about picking individual stocks yourself. Systematic investment plans are a diverse investment option, and they can help you take advantage of dividend payouts and low-risk dividend stocks. You’ll be able to avoid most of the drawbacks of trading in and out of stocks, which can be risky for long-term gains. Where to Begin: So now that we’ve established some basics about what SIPs (Systematic Investment Plans) are, you may be wondering where to begin. Should new investors buy a group of stocks that pay strong dividends? Or should they sacrifice a little in the short term for higher up-front growth? The answer depends on two factors: how much money you have to invest and how risky you want your investments to be. If you’re feeling a bit more daring and want to take on riskier stocks, then it’s best to invest in stocks with higher dividend yields. If you’re not a risk taker, you should probably stick with the group stocks. Regardless of your investment strategy, it’s best to consult a financial advisor before investing. Our recommendation would be to start with a SIP. Try to make the investment plan as simple as possible, with a fixed amount to invest and a set amount each year to reinvest. You should also consider purchasing some bond funds instead of mutual fund shares. These funds have less exposure to stock market fluctuations and are ideal for long-term investments that hold steady returns over the long haul (like bonds). Remember: Money invested in SIPs has a nice combination of risk and growth potential, making them a great place for new investors. Here Are Some SIPs In Which Beginners Can Invest: 1. Quant Active Fund: It is a multi-cap fund that has an allocation of 40 percent growth and 60 percent value stocks. It currently has Rs. 3,480 crore in assets under management (AUM). The most preferred sectors for this fund are pharmaceuticals, consumer staples, materials, etc. Since its launch on January 1, 2013, this fund has delivered average annual returns of 21.17%. It also has an expense ratio of 0.58%, which is much lower than what most multi-cap funds charge. 2. PGIM India Flexi Cap Fund: The fund has been around since 2015 and is invested across the equity and debt markets in a diversified manner. It has been consistently profitable, with an annualised return of 14.91%, since inception. The current AUM is 5,291 crores, and the most preferred sectors for this fund are financial services, automobiles, technology, etc. It has an expense ratio of 0.31%. 3. Parag Parikh Flexi Cap Fund: Currently, it has an asset under management (AUM) of 28,546 crore. The fund is a balanced fund that invests in the equity and debt markets with an allocation to defensive sectors like consumer staples, energy, etc. Since its launch on May 13, 2013, it has delivered average annual returns of 18.88%. The most preferred sectors for this fund are financial services, technology, etc. When compared to other balanced funds, it has a higher expense ratio of 0.76%. 4. Kotak Equity Opportunities Fund: The fund has been around since 2013 and is invested across the equity and debt markets in a diversified manner. It has been consistently profitable, with an annualised return of 16.68%, since inception. The current AUM is 11,662 crores, and the most preferred sectors for this fund are energy, capital goods, chemical sectors, etc. It has an expense ratio of 0.59%, which is lower than most advanced equity funds. 5. Edelweiss Large & Mid Cap Fund: It is a market-cap-weighted fund with 79.61% of its assets allocated to large caps and 20.39% allocated to mid-caps. The fund has delivered average annual returns of 15.92%, since inception. The most preferred sectors for this fund are automobiles, financial services, technology, etc. It currently has assets under management (AUM) of 1,696 crores and an expense ratio of 0.48%, which is much less than what other large and midcap funds charge. There are many options available, and you may decide to invest in the one that works best for you. The above-mentioned mutual funds provide tax-saving returns to investors in the long run. They provide investors with stability and growth. The returns are higher than investing in bank fixed deposits. Also, they are suitable for all types of investors, and they are the best option when you are new to investment banking. [B-02] By now, we hope you are convinced about the benefits of SIPs and that you’ll try at least one. If you need help, you can consult an expert like Piramal Finance for more information on SIPs and how to invest properly. They can help you with your investments by providing valuable information on mutual funds, including the ones mentioned above. Good luck and happy investing!
08-11-2023
Read More
Personal Loan

What is a Flexi Loan? All You Need to Know About Its Benefits and Features

A flex loan is a type of credit line facility or overdraft. It helps applicants borrow funds as and when required. However, they need to make sure the total amount they borrow does not exceed the specified credit limit. The interest will be charged only on the total amount that is withdrawn by the borrower. The principal amount can be repaid at the convenience of the borrower. However, the interest amount will have to be cleared at regular intervals, depending on the terms and conditions of the lender. [B-01] Let us learn more about flexi personal loans in this article. Features And Benefits Of Flexi Personal Loans A flexi loan is perfect for those looking to apply for personal loans with relaxed repayment schedules. Here are a few things you need to keep in mind about flexi personal loans: Easy Access: Once a Flexi loan has been approved, you can withdraw any amount of money at any time. The condition, however, is that the total amount borrowed cannot exceed the credit limit approved by the lender. Flexible Repayment Schedule: Once you have taken out a Flexi loan, you can clear your outstanding payments at your convenience. Although you have to make your interest payments on time, there is no time limit on when to repay the principal. You can make payments whenever you have excess funds. Multiple Withdrawals: The best part of a flexi loan is that you can withdraw funds any number of times at your convenience, as long as they are within your approved credit limit. There is no limit on how many times you can withdraw funds, and there are no additional charges for multiple withdrawals. Low-Interest Component: As a borrower of flexi Loan, you can save on your interest amount. The interest here is calculated only on the total amount that is withdrawn by you, and not on the credit limit approved.For example, if you have a flexi loan of Rs. 10 lakhs but have withdrawn only Rs. 5 lakhs, you have to pay interest only on the Rs. 5 lakhs that you have withdrawn. As you keep clearing your dues, your interest amount keeps on reducing. No Need for Collateral: Since a flexi loan is essentially an overdraft facility, you don’t have to pledge any security or collateral for it. Eligibility for a Flexi Loan Be it a salaried employee or a self-employed individual, anyone can apply for a Flexi loan. That said, different lenders follow different eligibility criteria while approving applications for Flexi personal loans. The main factors considered while assessing eligibility for Flexi loans include your age, income, credit score, occupation or business continuity, and existing debts or financial obligations, if any. A credit score of 750 or above can offer you the chance of getting a lower interest rate for your loan. Make sure you check your credit score before applying for any loan. If your credit score is low, here are a few steps to increase it: Make sure you don’t delay your EMI payments. Set payment reminders if need be. Restrict the usage of your credit card as far as possible Choose a longer repayment tenure whenever you apply for a loan Try not to take on too many loans at one time. Repay one before you apply for another. Make sure there are no inaccuracies or errors in your CIBIL report Choose different forms of credit and build a credit history. A healthy mix of secured and unsecured loans is recommended. Make sure you choose different tones and varied interest rates. After following the above steps, it might take anywhere between six months and one year for your credit score to improve. Depending on the result, you can decide when to apply for a Flexi loan. Documentation for Flexi Personal Loans A few standard documents required to apply for Flexi personal loans include: Your PAN Card, Aadhaar Card, Voter ID Card, Driving License, or Passport Your Aadhar Card, Utility Bill (at least 3 months old), Property Purchase Agreement, Lease Agreement, Bank Account Statement, Driving License, and Passport serve as address proof. Your salary slip (Form 16) or bank account statement serves as income proof if you are a salaried individual. If you are a self-employed individual or professional, you may have to submit additional documents such as: Your bank account statement, P&L statement, and balance sheet from previous years for income proof Your Certificate of Practice, Partnership Deed, MOA and AOA, Shop Act License, GST Registration, and Filing Documents as Business Proof Although these are the general requirements for flexi loans, your lender might ask for other documents based on your profile. [B-02] The Bottom Line Flexi personal loans are best suited to meet any type of personal financial requirement. The interest rates are comparable or sometimes even lower than regular personal loans. You get to save more since you will be paying interest only on the amount that you have withdrawn. The multiple withdrawals and the flexible repayment schedule make a Flexi loan worthwhile. Connect with a few lenders who offer Flexi Loans and compare their terms before finalising your decision. If you want to read more such blogs, visit the Piramal Finance website.
08-11-2023
Read More
Home Loan

Important Things to Take Care of While Applying for Property Loan in India

A need for money can arise at any point in time. Though, it is possible that you may not have enough savings to help you tide through. This is where you must explore the option of raising funds from an external source. You can apply for a property loan based on the amount you need. To avail of this loan, you must own a property in your name, and it should be free from any lien. A loan against property is secured, as you must pledge your asset (land or house) with the lender. Many banks and NBFCs offer this loan at low-interest rates, for they have lesser risk here. You can use the money for any needs you may have, as the lenders have no rules to restrict the usage of the loan amount. The interest rate on this loan is low compared to other loans, as it is a secured loan. There is no upper limit to the money you can raise as a property loan. Many lenders offer up to 5 crores as a loan against property based on your profile. Read on to learn about things you must take care of when you apply for a property loan. How to Apply for a Property Loan? You can apply for a loan against property with any bank or NBFC you prefer. Here are the steps you need to follow to apply for a property loan: Do your research and find a suitable lender whose offer meets your needs. You can find details about property loans on their website. You must then visit the website or the lender or use a mobile app per your preferences. You need to click on the link for ‘Loan Against Property’. You must find the link for ‘Apply Online’ and click on it. You now need to enter your personal details such as name, age, income, contact details etc. As this loan involves property, the process cannot be finished online. Hence, a team member from the lender will contact you. You need to fill out the loan form, provide the papers, and complete other formalities as the need may be. Then the lender will send a valuer to verify your property. The valuer will also decide the property’s value per the present market condition. You will be given a loan offer if your credit score and profile meet the lender’s rules. Most lender offer between 60% to 80% of the property value as a loan against property. You will need to submit the original papers of the property to the lender. You must sign the loan agreement if you agree with the offer. You will also need to sign the mortgage register. This would help the lender create a charge against the property. Then the lender will send the money to your bank account. You will also get the loan schedule and other details on your email id. You can now use the money as you prefer. You will need to pay the EMIs as per the loan schedule. Crucial Facts Related to a Property Loan Before you apply for a loan against property, here are some crucial facts that you must know: Tenure: A property loan comes with a long tenure. Most lenders will offer you up to 20 years to repay the loan. This will allow you to get an EMI amount you can easily afford every month. But while opting for a loan tenure, keep in mind the interest cost. The longer the tenure, the higher the interest cost and vice-versa. So, select an EMI amount you can afford that will keep the interest burden under control. Property: You can get a property loan against a commercial or residential property. But the property must be in your name and free from any lien. If the property is not in your name, you must get the owner as a co-applicant. Keep in mind that the lender will conduct a legal and technical study of the property. So, you must be sure about all the facts and share them with the lender upfront. Interest Rate: Every loan comes with an interest cost. The same is the case with a property loan. Though, it is vital to note that it is a secured loan. Hence, the interest rates are lower. You can get a loan against property from as low as 11.5% per annum. Low-interest cost means lower EMIs which further reduces the chances of any default on a loan. Loan Amount: A loan against property is a high-value loan. The maximum amount you can get as a loan is related to the property’s value. Most lenders offer up to 80% of the property’s value as a loan. This means you can easily get as high as Rs. 3 crores as a property loan. There are no limits on how you can use this loan. But make it a point that you borrow only that much you need and can repay. Do not get into a debt trap by going for the maximum amount. Some lenders may also offer this loan as a line of credit. Herein, you will need to pay interest only on the money you use and not the entire amount. [B-02] Summing up A loan against property is a good way to meet your urgent money needs. It is vital to select a lender that will give you the best offer in terms of a high loan amount, long repayment tenure, and low-interest rates. This is where Piramal Finance emerges as a leading option. It is a leading NBFC that offers the best offers on a property loan to help you meet all your money needs.
08-11-2023
Read More
Personal Loan

All You Need To Know About Student Credit Cards In India

Many students nowadays study far from their homes. As a result, they must learn how to handle their day-to-day costs on their own. Many students prefer to make money transfers using e-wallets or digitally. The issue with e-wallets is that they must be recharged on a regular basis There is also an implicit limit on e-wallet transactions for persons who are not KYC-certified. All of this makes e-wallet transactions complex. [B-01] A credit card in India is often aimed specifically at students to make payments fast and more simple. These are given to students who do not have a credit history. This article will provide you with all the information about student credit cards in India. Features And Perks Of A Credit Card In India Here are the features and perks of the best credit card in India: Credit Limits Student cards have a lower credit limit than other credit and debit cards. A student credit card in India typically has a credit limit of Rs. 15,000. This is done to prevent users from incurring debt due to free spending. Validity of the Card Student credit cards can be used for 5 years from the date of issue, unlike standard credit cards, which have a three-year validity term. Costless Duplicate Card If a student misplaces or loses their credit card, a copy card will be provided for free or at a very low fee. Fee Exemption Student credit cards sometimes do not have a joining fee and have relatively low annual fees, making it simpler for students to keep the cards active. Paperwork Unlike many other credit cards, student credit cards do not need extensive proof. When applying for a card, there is minimal paperwork involved. Special Offers and Perks The student cards include rewards and loyalty schemes that provide cashback or cash points after a certain amount is spent. The cards also provide unique deals and discounts on services and purchases made all around the globe. The student credit card may be upgraded to a regular credit card during the validity period if the user desires. Eligibility For Student Credit Cards In India Here are the factors required to apply for a student credit card in India: You must be at least 18 years old. To receive a student credit card, you must be a student at a college or university. A student ID card would be necessary. Certain student credit card issuers may ask students or their parents to create a fixed deposit account for a certain sum. Since these credit cards are unsecured types of credit, fixed deposits would serve as security. To get a student credit card in India, certain banks may need a Savings Bank Account with a minimum quarterly amount. Some banks only issue student credit cards to people who have got an education loan from them. Documents Needed for Student Credit Card in India The documents required to apply for a student credit card in India are: Identity Document Birth Certificate Proof of Address Student Identity Card Passport sized photos PAN Number In some cases, data about a parent’s or guardian’s account and identity papers may be needed. Ways To Apply For A Student Credit Card In India Since most of these credit card users are students, banks do not ask for credit card eligibility criteria, such as credit score and solid income. A credit card in India for students may therefore be acquired through any of the following methods: Apply with a Fixed Deposit You may apply for student credit online or in person if you have a fixed deposit (FD) in your name. Yet, the minimum level acceptable for a credit card via fixed deposit varies per bank. Apply as an Add-on Card If your family member has a credit card in India, you may receive a credit card for students as an add-on card. Yet, the main user must have a strong credit history for the add-on card to be authorised. Apply with a Savings Account or a Loan You may apply for a student credit card in India online if you have a savings account with a consistent monthly average amount as stipulated by the issuing bank. Some banks, like the State Bank of India, also provide similar cards to persons who have taken out an education loan with them. Benefit from State Programs Many Indian state nations have launched credit card schemes for students. Some public services that provide such cards are the West Bengal Student Credit Card Program, the Bihar Student Credit Card Scheme, the Jharkhand Student Credit Card Scheme, and others. How Can A Student Apply For A Credit Card in India? A student credit card in India is the newest entrant within the credit card sector, assisting college students with managing their finances. Yet, not all students qualify for a student credit card. Various banks and banking firms have developed unique qualifying rules for issuing a student credit card in India. Only those who satisfy the requirements can apply for a credit card. Some banks, such as the State Bank of India, solely provide credit cards to education loan users. What is the method? If a student over 18 wants to apply for a student credit card in India, they must first know what bank offers the finest student credit cards and how to apply for them. If you match the bank’s qualifying conditions, you may inquire with the bank about the formation process. Not all banks adhere to the same procedure. As a result, speaking with a bank about its unique procedure for applying for student credit cards is essential. While some banks enable you to apply online, others may need you to visit the bank location in person and complete a form. [B-02] Summing Up A student credit card is a form of credit card available to college students. If you are 18 or older, you may apply for a student credit card in India. If you still need more information, you can visit Piramal Finance and explore other blogs on the same topic.
08-11-2023
Read More
Personal Loan

Everything You Need to Know About Used Car Loans in India

You may own a good used car with a used car loan. Used vehicle loans are offered with low interest rates and payback terms of up to 7 years. Some banks offer loans of up to 100% of the car’s value. Most banks and non-bank financial firms give used car loans. A used car loan in India is offered to self-employed and salaried workers. Notably, if you’re looking for a used car loan in India, there are plenty of options. Yet, as more regulated players enter the used vehicle market, things are getting simpler. So, here’s what you should know about securing a used car loan in India. [B-01] 7 Things to Consider Before Asking for a Used Car Loan in India Below are the aspects to consider when seeking a used car loan in India: 1. Gone are the days when buying a used car required you to pay the whole amount in one stroke. You may now fund it totally, just as you would a new car. Many banks and financial firms are now offering used car loans in India, which may be taken directly or via listed banks and NBFCs from a trusted used car seller. 2. Set a budget for your car and look for the relevant options. If you wait long enough, you may be able to purchase your desired car as a new vehicle that was previously out of your price range. When you discover it, physically inspect it for any faults or flaws. 3. Attempt to get an exact appraisal of your chosen car. Knowing the brand, model, and number of kilometres driven, among other things, will help you figure out the correct value of the car, which will be vital when asking for a used car loan in India. While organised entrants will already have a car price, some web platforms include a price calculator. Get the insurance list of cases, which will assist you in determining if there have been any past claims on the car. 4. Once you’ve calculated the car’s worth, pick the choices that best suit your needs. All lenders now want 1% of the automobile’s total cost as a down payment, the same as when buying a new car. While a bank may offer you 100% funding in rare cases, most banks offer loans ranging from 80–85%. In rare cases, it may even be as low as 60%. The rest will be your down payment. 5. The rate of interest (ROI) follows next. Various banking firms will offer varying ROIs on auto loans, which may vary based on vehicle model, credit history, client profile, and other factors. Today, the interest rate on used cars in India is about 11–18% per year, slightly more than the ROI on new cars, which is around 7.5%. Some banks will give a set ROI, while others may offer a fluctuating ROI. 6. The loan term is next. A used car often has a loan duration of 3–4 years, unlike a new car, which may have a term of 5–7 years. This is mostly due to the lower loan sum in the former case. The cost gap between the two might sometimes be more than 50%. 7. A combo of the loan sum, interest rate, and loan term will now decide your equated monthly instalment (EMI). Since the interest rate on a used car in India is higher than on a new car, it’s ideal to pay off the debt as soon as possible. Therefore, pick a shorter term. This will assist in lowering the total interest load. Also, look for a loan option that does not charge an early loan payback fee. Things to Consider When Getting a Used Car Some of the most vital factors to consider while buying a used car are as follows: Examine The Car Make certain that the car is fully checked. You may have a mechanic inspect the vehicle. If the car has any problems, you may haggle the price. Drive the car in a less busy area to check for shocks. Examine the papers carefully. It is vital to inspect the insurance paperwork and the registration certificate correctly. Check that the engine and chassis numbers on the vehicle match the ones on the copies. Knowing if the car has been in any accidents is also vital. History of the Car Before buying a car, it is vital to look into its history. You may find the car’s specs online. Checking the car history will help you determine whether the vehicle has been in any accidents or had any servicing problems. The registration certificate must be transferred. Once you’ve bought the car, ensure the registration certificate (RC) is transferred to your name. A NOC is needed if the vehicle is listed in another state. A NOC is also needed if the car was bought on credit by the former owner. Insurance Transfer The automobile insurance plan must be promptly changed to your name. Even though the RC is in your name, the insurance plan is null and void if it is held in the prior owner’s name. Maintain the Car It is crucial that the car be fixed before you begin using it. It must be repaired if it rusts. Before using the car for the first time, replace the lubricants and wash the car. [B-02] Conclusion A used car loan in India may greatly assist you in making your goal of buying a car a reality. Yet, it is vital to examine loan packages from many lenders and pick the best-suited used auto loan for you. While used car loan interest rates in India are higher than new car loan interest rates, your EMIs will be lower since the loan sum will also be lower. If you don’t want to take out a used car loan in India, look at other options for funding a used car. These may include taking out a personal loan, a loan against land, a gold loan, etc. If you want to know more about 0% car loans in India, visit Piramal Finance. You may also explore their products and services.
08-11-2023
Read More