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Personal Loan

Most Important Things to Consider Before Getting a Car Loan in Festive Season

Buying a car is no longer as costly as it once was. The modern consumer is astute and understands how to take advantage of funding options. Furthermore, because banks and financial firms offer so many car choices, it is now simpler for you to make an informed choice. However, key factors must be considered before making your final choice to get the most out of your car loan offer. [B-01] Things to Consider When Selecting a Car Loan During Diwali Offer Below are the vital aspects to consider when selecting a car loan in Diwali offer: CIBIL Score Look up your CIBIL score before applying for a car loan on Diwali offer. The bank or lender will assess your eligibility and the loan’s interest rate based on your score. While a high CIBIL score will allow you to obtain a low-interest loan, a low score will lead to a higher interest rate and, in some cases, denial. Banks prefer credit scores of 750 or higher. However, if your credit score falls below this threshold, you may still be able to get a loan. Depending on your profile, some lenders will lend you a car loan with a lower credit score. Interest rates are low. The interest rate defines the EMIs you must pay over the loan’s term. Before making any choices, look at the rates given by different banks to seek the most reliable choice. Though the process can be time-consuming, it is vital because car loan interest rates are not standard. After analysing your profile and repayment ability, various banks offer varying interest rates. Furthermore, the rates vary because there are two kinds of interest rates: floating and fixed. Remember that even minor differences in interest rates can significantly impact the EMIs you must pay for your loan, so consider even minor differences to find the best one. Fine for pre-closure or foreclosure Pre-closing your debt means that you have repaid your loan before the preset time and saved a large sum of cash that you would have had to pay as interest. Yet, if you pay a lump sum of cash to the bank against the auto loan before the real payback time, the bank may assess a pre-closure fine on the remaining loan sum, which might dampen your delight. As a result, before picking a bank, find out whether the bank imposes any penalties for pre-closure or foreclosure. Choose carefully, as each bank’s interest rate is different. Pick banks that either do not charge a fee or charge a minimal sum. Tax on Service Most car loan debtors are unaware of the service tax. Banks levy this standard charge on their customers in exchange for their services, and it cannot be contested or bargained. However, the bank may often request that you pay the tax, and if you’ve already consented to the bank’s terms and conditions, you cannot refuse them. Furthermore, while a few banks charge service tax only once, others charge it annually. So, before consenting to the bank’s terms for paying service tax on the loan, inquire how frequently you will be required to do so. If you accept the terms, you must enter into a contract. Processing Charge Almost every bank charges a flat fee to process your car loan request. Even when banks and other entities offer low-interest car loans, they levy a high handling fee. The handling fee varies from bank to bank, and you should ask whether or not the bank charges a processing fee. Banks typically levy a charge ranging from Rs. 2,000 to Rs. 5,000. Even so, you may end up paying a sizable handling fee because banks cost 0.5% to 1% of the loan sum if you borrow Rs. 5 lakh to buy a car. So try to bargain with the bank to lower the fee. During festivals and special offers, some banks will waive up to 100% of handling fees. When seeking a loan, keep an eye out for such offers. Offers and Schemes Don’t be in a rush when applying for a car loan in this Diwali offer. Instead, be patient and keep an eye out for special offers and plans to save some funds. Most banks offer special Diwali offers on car loans or during specific times of the year. Reap the benefits of such offers, including handling fee and pre-closure fine waivers, 100% financing on the vehicle, low-interest rates, special gift cards, and so on. With good credit and a solid profile, you may qualify for customised car loan deals from banks. You might even get lucky and get a car loan with 0% interest. So, before making a final decision, don’t miss checking the offers and plans. Car Insurance When you apply for a car loan in this Diwali offer, lenders may try to persuade you to purchase credit insurance and other extra insurance to make a profit. Even though an insurance policy can be useful for covering your loan payments, purchasing it from a car loan lender is not a good idea. You will not be able to get the best deal on insurance premiums because they will only get insurance from banks and agencies with which they are affiliated. As a result, when choosing a car loan in this Diwali offer, don’t be swayed by the insurance plans given by the lender. Instead, conduct a market study, compare and contrast different policies, and then choose your best offer. If you need to consult with an insurance agent, ensure that the agent has no ties to your credit lender. [B-02] Conclusion Purchasing a car is a significant financial investment that should be cautiously approached. That is why you must consider these factors before applying for a car loan in this Diwali offer. Because financial planning is essential when taking out a car loan in this Diwali offer, you should research the best EMI plans available and ensure that you can repay the loan comfortably. Now that you’re well informed, you can select the best car loan offer option on the market and take a significant step toward owning the car of your dreams. If you want to know more about the best car loans during Diwali offers, visit Piramal Finance. You may also explore their products and services.

08-11-2023

Business Loan

All You Need to Know About TDI Loans for Small Business

Getting a business loan from a bank or a non-banking financial company (NBFC) can help a company start up or grow if it doesn’t have enough money to do so on its own. Most business loans have interest rates based on how much money was borrowed and the amount of time given to repay the loan. In India’s startup scene, small and medium-sized businesses still go to banks for loans. Your small business can grow with the help of a business loan. The money from your business loan can be used for anything you want. For example, to buy new equipment, hire more people, pay for advertising, etc. With bank loans, your business can keep going. Take advantage of opportunities for market growth. About 40% of India’s GDP comes from its small and medium enterprises (SME) sector, which comprises small businesses. Even though this is a big source of jobs in India, there is a lot of competition from privately funded businesses in this area. As a result, the Indian government has set up several loan programmes for micro and small businesses. These loans can be used for many things by small and medium-sized businesses (SMEs). They help people run and grow their businesses, buy new equipment, and so on. [B-01] What is a Loan for a Business? A business loan is a sum of money that a company borrows from a bank or other lender to help the business grow. This money helps businesses meet their immediate needs for growth and expansion. Eligibility criteria for a business loan Whether or not a company can get a loan will depend on the following: How old is your company? Financial institutions like banks care a lot about how long a company has been in business. For a small business loan online or a business loan from a traditional bank, you usually need to have been in business for at least two years. Credit score In India, one of the three major credit bureaus will give business owners a free credit report once a year. This is a very important requirement for getting a business loan because it shows the lender that you can pay back the money on time. Getting taxes done Before applying for a business loan, the borrower should have filed income tax returns for the past two years. Along with other paperwork, you need to send in the ITR forms. This includes proof that you own the business and bank statements. How to Choose the Right Business Loan Lenders or banks usually ask why a business needs a loan. Lending institutions often want to see that a business has enough cash flow. Because of this, it might be hard for startups to find investors. In the beginning, business credit cards and personal loans may be the only ways for some startups to get the money they need. In this situation, a line of credit can be an attractive way for a business to get money, making it easy to get cash when needed. In this manner, a business can meet its financial obligations—whether they are regular costs like payroll or unexpected ones like repairs, maintenance, etc. There are different ways to get money for a business that is just starting or growing. 1. Required Paperwork Forms that are not properly completed will not be accepted. 2. Documents for KYC Articles of Association Certificates of Shops and Establishments Certificates of Incorporation Partnership Agreement, Incorporation Papers (AOA) 3. Account number that won’t change The business’s partners’, directors’, owners’, and promoters’ finances Sales predictions and results so far this year Financial statements (including audited and pro forma versions), VAT returns, audited financial statements, and so on Proof of the company’s registered office address on behalf of its directors, promoters, partners, or owners Statements from the last six months Photos: A photo of the applicant(s) and any co-applicants that is the size of a passport How to apply for a business loan? Getting a small business loan from the government is relatively easy. You can get a loan directly from a bank or credit union, which is how the government gives out most loans. Visit the branch of a bank or other financial institution that is most convenient for you to get help applying for a loan. Some banks have online apps you can use to apply for loans for your business. You can apply by going to their websites, filling out the online form, and uploading any additional materials required. The bank verifies your information after you have completed the forms. If everything is verified as correct, the loan amount will be deposited into the bank account you provided when you applied. Final Words Companies should check their credit scores often, especially when they want to borrow money. Checking the business’s credit report is a good idea before applying for a loan. The owner must fix any errors as soon as they are found. Piramal Finance is an Indian financial services company making its foray into retail lending, including personal loans, business loans, housing loans, and other consumer-focused finance products. [B-02] FAQ How large a loan can I expect to get in India for my business? Small and medium-sized businesses (SMEs) and startups can get business loans of up to Rs 2 crore. This depends on the borrower’s qualifications, the lender’s terms, the borrower’s credit history, and other factors. 2. How likely is it that I’ll be able to get money to start my business in India? In India, entrepreneurs can get loans from the government through a wide range of programmes. The Mudra Loan Scheme is a popular choice as it has many benefits for borrowers, such as lower interest rates.

08-11-2023

Other

How Business Financing Is an Important Factor for Businesses in 2022?

The funds needed to set up, manage, and expand a firm are referred to as “business financing.” Cash flows are sometimes necessary, and nearly every firm will need funding at some point. There are many ways to finance a business. Lines of credit, term loans, Small Business Administration (SBA) loans, and other business finance are examples. Business funding may be used for a wide range of purposes, but the end goal is always the same: to help your firm prosper. [B-01] Business finance may also refer to how your firm handles its money. It doesn’t matter how much money you make—if you’re not properly handling spending or saving for a crisis day, you might find yourself in a tough spot. Keys to Handling Business Financing Handling business financing means refining how your firm manages cash. If considering commercial financing, consider the following aspects: Expenses for Tasks To be solvent, your firm must cover all of its operating expenses. This includes having enough funds to pay your staff, buy raw materials or goods, pay your debts, etc. You want to make sure you have enough money to meet your bills and then some. Risk Management Just as you need adequate cash to cover your daily needs, you also want exposure to extra funds in the event of a crisis. This might be a cash buffer, a savings account, or a firm credit line. Long-Term Aims The adage “you need money to make money” is true. Whether you’re starting a new company or expanding an existing one, you’ll need money. Take a moment to assess how your current spending may affect your growth goals. The importance of business financing Business financing may be stressful, notably for young firms and start-ups. Yet, there are many tactics you may use to make the task simpler and less time-consuming. The value of commercial financing is vital for any firm to prosper, and only by knowing its effects on the firm’s income and growth as well as the distinct parts it involves can one comprehend its significance. 1. Financial Reports Financial records are a great tool for tracking a firm’s success. They give information on the firm’s fiscal status and progress. Investors, bankers, funders, and other stakeholders rely on them for accurate data. Financial records can show a firm’s debt and future fiscal prospects. 2. Strategic Planning Many firms struggle to manage their money because they must devote time to tasks that do not add to the firm’s earnings. Strategic planning may help your firm generate more money by giving a better view of what you are doing and where you are headed. Strategic planning assists in making more money by offering a better view of your performance and where you are leading. It also assists you in getting rid of weak investments, which often result in financial losses, and focusing on your talents instead. 3. Marketing and Promotion Most firms have heard the term “promotion.” Yet, not all firms understand what marketing entails and why it is useful to their bottom line. Promotion is promoting your item or service to the general public to build awareness and a need for it. It may also include sharing information about your firm through social media or arranging events where folks can learn more about you and your firm. 4. Finance Financing is vital in creating commercial finance since it allows firms to take chances and thrive. In the past, firms could do anything they pleased without financial help. Yet, as technology and globalisation become more prevalent, firms are becoming more dependent on money to reach their goals. Financing is also vital in boosting commercial finance since it helps firms take chances and thrive. You increasingly depend on money to achieve your goals as you use technology more often. Finance is vital for growth since it helps firms take bets and expand. What Are the Advantages of Having a Good Financial Management System? There are many advantages to having a strong financial management system for your firm. However, the most notable ones are: It helps you stay steady during difficult times. Money is vital and rare in any firm, notably in the early stages. Most firms operate with little capital, hoping to reach a tipping point and turn a profit before considering further expansion. At this point, proper financial planning is vital to have an acceptable plan to handle all aspects and emergency reserves. Continue to maintain cash flows Cash flow is a vital aspect of business finance since it ensures a steady influx of cash and that the outflow of funds is in the proper direction. Financial management oversees all areas of cash flow, notably credit management and payment collection. Accurate Financial Reporting To have a comprehensive view of its finances, every firm must keep financial records such as a profit and loss account, cash flow report, balance sheet, and journals. In addition, you must follow legislative rules. You can keep your records up-to-date with proper financial management. Helps with Decision Making Having a clear picture of your money is one of the advantages of having a comprehensive credit and financial management system. It helps you make better-informed future selections. You may learn from your past failures and better predict the future. Sign up for the Credit Management Platform. Although it is a new idea, it has quickly captured the attention of businessmen from across the country. It assists you in generating business information reports and obtaining payment from defaulters. Avoid Conflicts with ITD No firm wants the Income Tax Department (ITD) to show up at their door one beautiful morning for an audit. The simplest way to prevent this is to submit your taxes on time and keep your records in order. A competent financial system will take care of both elements, and you will not have to worry about anything, even if an audit is conducted. [B-02] Conclusion Business finance is crucial and may have a good influence on a firm. If funds are appropriately managed, they can assist any firm in taking a better turn toward success. Educate yourself and use your newfound knowledge to bring more to your company’s table. If you want to know more about business financing, visit Piramal Finance. You may also explore their products and services.

08-11-2023

Know More

Detailed Information of Sukanya Yojana

For decades, women weren’t provided with the same facilities and benefits as men in India. This has hampered their progress. With this goal in mind, PM Narendra Modi launched the “Beti Bachao Beti Padhao” campaign on 22nd January 2015. One of the most prominent schemes of this campaign was Sukanya Samriddhi Yojana. This article will discuss everything one needs to know about this scheme. [B-01] What does Sukanya Samriddhi Yojana incorporate? This scheme provides an excellent choice for parents to fund their girl child’s future until marriage. Under the scheme, the girl’s family can set up a Sukanya Yojana account for her but they should do it before she turns ten years old. The account will expire 21 years after its establishment. But this limit does not apply if the girl marries before the end of that period. The Sukanya Samriddhi Yojana account does not work after marriage. If no investments are made in any of the years, the account is considered non-remittent. The minimum amount that you can invest is ₹250 per year, while the maximum amount is ₹1,50,000 per year. The scheme is an EEE (Exempt Exempt Exempt) program. The first exemption refers to the tax deduction on your investment. The second exemption is for the interest of the accumulation phase. The final ‘E’ here means that the income earned from the investment is also not taxed. You can set up a Sukanya Samriddhi Yojna account in most authorized post offices and banks. In certain cases, the procedure can be completed through online means as well. All relevant documents like birth certificates, Aadhaar cards, etc. should be submitted during the process. Functioning Deposits should be submitted annually to the Sukanya Samriddhi Yojna account for 15 years after setting it up. No deposits are required after that. These deposit amounts continue to accrue until the expiration of the account. Annual interest will be charged on the account as determined by the Government of India. This interest is calculated based on your minimum account balance from the 5th to the end of the month. Henceforth, your best option would be to pay the instalments before the fifth day of every month. Upon maturity, the girl will receive the entire term’s accrued principal and interest. Usually, the girl’s account is established and handled by her parents or guardians. Yet, she has permission to operate it herself from the age of 18 by submitting the required documents. Fragmentary withdrawals of up to 50% of the collected amount are allowed. This can be done only when the girl reaches adulthood. Its purpose is to meet needs like further education, marriage, job requirements, etc. Besides a written application, a document in the form of a fee slip from the institution is needed. You can also submit an admission offer from the school. The document should mention the required funds. It should also be certified. The withdrawal amount will not be more than the true demand for the fee. The charges in the admission offer or given during admission are also covered. It also holds for the fee slip. The early closure/withdrawal of the account is only valid in the following cases: If the girl suddenly passes away. If the girl is no longer a citizen. The change in citizenship should be informed one month before the bank. The depositor is financially unable to contribute to the account. If the girl marries as soon as she turns 18. The owner of the account should appeal twice: One month before the marriage Three months after the marriage. Interest Calculation The Government uses G-sec yields as a basis to determine the interest rates quarterly. G-sec stands for Government security. The net profit which you can earn from the security is called yield. Currently, the Sukanya Samriddhi Yojna has a 7.5 interest rate. The account will be credited with annual compound interest at the rate the government will announce. If the account holder chooses monthly interest, it will be calculated on the following basis: On the account’s balance in completed thousands On the balance that will be paid to the account holder In the fraction of thousands that remain, which will continue to earn interest at the rate in effect. The amount rounded off to thousands will be considered for monthly interest. The remaining balance will continue to accumulate interest at the current rate. The deposit made between the end of the 10th day and the end of the calendar month is used to calculate the interest. It will calculate interest for the entire month, based on the account’s lowest balance. Benefits: The returns offered by the Sukanya Samriddhi Yojana are a huge source of comfort to families. Currently, its interest rate is 7.6% annually. It is higher than the interest earned on bank deposits and a few other scheme instruments. This makes it a safe option for families to invest in a girl’s higher education or future marriage. Let’s sum up all the advantages of the SSY scheme. The account can be opened with a deposit of a mere Rs.250, making it affordable for millions of families in India. You can withdraw nearly half of the entire accumulation. This will likely meet the individual’s needs in studies and marriage. There is no tax on the annually compounded interest. The same goes for the sum received when the account expires. You are not required to make further investments as soon as the account reaches fifteen years of age. The collected savings will keep accumulating interest until the owner shuts it down. [B-02] Conclusion: Families often search for an income source for the bright future of their daughters. Sukanya Yojana is like a ray of light for them. It includes a sovereign guarantee. The scheme is an EEE program that allows parents and daughters to benefit from it in many ways.

08-11-2023

Know More

Looking to meet your financial goals

Every person has a different situation when it comes to personal finance. Nobody has the same expenses, rent, commitments, or lifestyle. But every person needs to plan finance to maintain their lifestyle. Setting goals is an essential part of financial planning. It can support you in planning for your financial goals. Moreover, it can also clarify what kind of lifestyle you want. If you don’t set financial goals, you’ll likely feel like you’re just spinning your wheels. It’s time to set some financial goals to finally get moving. [B-01] 7 ways to meet your financial goals Before meeting your financial goals, you should first understand what financial goals are. A financial goal is any target you aim for while saving money. Depending on your financial planning, these targets could be short-term, mid-term, or long-term. Take financial advice. Also, understand your needs before setting your financial goals and working toward them. Here are seven ways to meet your financial goals: Start an emergency fund. Life is uncertain. Thus, it is necessary to be prepared. Saving for emergencies is highly necessary to plan finance in a better way. Regardless of your situation, this has to be the first on your list. Without an emergency fund, even a tiny financial shock can set your life back. And if it turns into debt, it can have long-term consequences. The amount of this fund depends on your financial situation. Examine previous emergencies and the impact they had on your financial objectives. This analysis will help you understand how much money you need to set aside. Numerous scenarios can fall within this emergency category, including: Accidents Fires Job loss Medical expenses Home repairs Get out of debt. If you’ve got any debt, get serious and start paying it off. Getting rid of debt is a fundamental goal for personal financial planning. However, do not use debt to pay off debt. Paying off debt seems complicated at first. It requires a lot of motivation. Still, it’s a necessary step necessary to plan finance efficiently. Start by reducing your debt every month. Slowly increase the repayment amount if you can. This method will help you save money on interest and unnecessary extra fees. You will also be able to build your credit score. You will also enhance your net worth this way. Identify your time frame. You can plan finance more efficiently if you divide your goals into short-, medium-, and long-term financial targets. Additionally, it helps match your investment objectives with the right resources. Short-term financial goals Short-term goals are those you desire to accomplish within the next few months or a year. Setting short-term goals to plan finances can provide you with a strong foundation for your bigger goals in the future. Mid-term financial goals Mid-term goals take longer to complete than short-term ones. But they have a shorter time frame than long-term goals. Some examples of mid-term goals to plan finance include starting a new business, learning a new skill, getting a job, etc. Long-term financial goals Long-term goals are those that will take more than ten years to complete. Retirement plans are the most common example of a long-term goal. Be realistic about your goals. Being a realist is extremely important to plan finance correctly. Consider your income and expenses while establishing your goals. This will help you ensure that they are achievable. Your financial goals are personal to you and are a continuation of your fundamental values, and this is what matters to you the most. Please do not compare your situation with others and copy their financial goals. Focus on your case only. A realistic financial goal is easily attainable. If you set up unrealistic and impossible-to-achieve goals, you might worsen your financial situation. A realistic financial goal is easily attainable and will keep you motivated. Invest your money. After taking care of your fundamental needs, start investing as soon as possible. Even small investments count if you wish to plan finance with a long-term perspective. By investing, you can increase your money. You can also use it to achieve your long-term financial goals. Your investments will undoubtedly provide you with returns. Meet your needs, not your desires. Understanding this old saying, “There’s enough for everyone’s needs but not for their greed,” can help you to plan finance in a better way. Never make impulsive purchases or go shopping for needless wishes. The secret to reaching your financial goals is discipline. It doesn’t mean you can’t spend money on things you want. However, if you wish to save money, you must give your financial decisions a lot more thought. Monitor your progress. Make checkpoints for yourself. Ask questions like, “Where am I with my investments?” Am I moving forward toward achieving my financial goals? Am I on the right path to plan the finance for the future? If you seek financial advice from an investment advisor, ask them how often you should meet to review your progress. You should be aware of your periodic financial progress to make it easier to realign with your goals when necessary. Keep track of your costs, savings, investments, and overall wealth. The more you evaluate your progress, the more likely you are to be successful in personal financial planning. [B-02] Conclusion Achieving your financial goals is all about consistency and balance. You can make your dreams a reality by meeting your financial goals. If you haven’t started personal financial planning, the right time is “now.” These tips mentioned above will help you to plan finances more efficiently. However, a relatively high level of financial literacy is necessary to set reasonable financial goals. Suppose you consider yourself ill-equipped to make decisions regarding loans, EMIs, etc. In that case, you can seek financial advice from Piramal Finance. It is a leading finance company engaged in providing financial services. They provide a highly superior customer experience through top-notch customer service and product personalization.

08-11-2023

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Give A Thoughtful Gift To Your Loved Ones

Is an instant personal loan a good idea? Can instant personal loans have any effects? What is a safe way to apply for a personal loan? Giving a gift to a loved one is a wonderful way to express how much you care about them and how glad you are to have them in your life. People with financial problems can get the proper presents for their loved ones with the aid of an instant personal loan. Obtaining a personal loan through the Internet is quick and simple in every aspect. You may borrow a quantity that works for you. You’ll have many options for repaying the loan and cheap interest rates. Prepare to deliver expensive and sincere presents to those you care about while we handle the money. [B-01] Benefits Paperwork is reduced. You need to present a few documents to get an instant personal loan. The simple approach and minimum amount of required paperwork allow applications to be processed swiftly. You won’t have to compile a slew of paperwork or visit the bank only to hand them over. To apply for a loan online, you simply need to submit the necessary paperwork. Processing and payment are completed quickly. Your loan application will only be accepted in a few weeks. This is fantastic news if you need to purchase brand-name clothing for the holidays at the last minute or if you want to give your family the most current presents. Instant personal loan funds are often sent to your account within a few hours of applying and meeting the prerequisites. You won’t have to spend time and energy travelling back and forth to the bank for an extended period of time only to obtain your loan funds. Furthermore, the funds may be sent to your account in a few minutes if you get a personal loan that has already been authorized. Modular payment plan It will be easy for you to apply for a personal loan after the holidays. The time it takes to repay a personal loan might range from one to five years, and your monthly payments can be adjusted to meet your budget. There is full security You do not need to locate collateral to get an instant personal loan. A personal loan is unsecured, meaning the borrower is not required to put up any collateral to get the funds they need. When considering whether or not to provide you with the loan, the lender will not consider the value of the collateral. Instead, they will consider your credit history and ability to repay the amount. Because you may not have enough money, you may be unable to provide your loved ones with everything they want. With an instant personal loan, however, nothing can stand in the way of a joyous Christmas spent with family and friends. Take out a loan, but only if you’re certain you’ll be able to repay it. Use an EMI calculator before applying for a personal loan to see if you can afford the payments. Who can apply for an instant personal loan? People who are paid Customers that fulfil conditions for an instant personal loan, such as earning at least Rs. 15,000 per month. If you can present documentation of who you are and how much money you earn, you may speed up the application process and obtain your loan more quickly. Students Finding a cosigner and applying for a personal loan is the best option for a student to pay for school or a large purchase. This is another option for you. Tata Capital provides several advantages, including speedy clearance and quick distribution. Individuals who have recently retired People who are retired and get a monthly pension check may be eligible for a loan. Even if you haven’t worked for the government or the military, they can offer you money swiftly if you satisfy their qualifications. Is a specific CIBIL score required to get a personal loan? Your payment history is bundled into a single figure known as your CIBIL score. The figure might range from 300 to 900, indicating how well you performed. This score is based on how well you performed across the board. This score is then used to determine if the borrower is a good credit risk and the loan conditions. Your CIBIL score will play a significant role in whether or not you are approved for a loan that does not need collateral. Applicants with CIBIL scores over a minimum of 700 are usually approved quickly. To be accepted for an instant personal loan, your CIBIL score must be between 720 and 750. What is a personal loan EMI calculator? An instant personal loan calculator may be used to determine the total cost of repaying a personal loan, including interest and principal. Using the EMI calculator, you may determine how much you can pay each month over a suitable period. You may use our EMI calculator to see how much you need to pay monthly to repay the loan. [B-02] Summing up The main goal of this article is to provide a detailed description of the steps you must take before applying for a personal loan. You should be aware of all the options available and then take an informed decision. Consider all of the circumstances before deciding on the best method. It would help if you spent a lot of time thinking about the past because it can teach you a lot. Do visit the Piramal Finance website, and you will come across other articles that are informative and helpful. They discuss various related topics in great detail.

08-11-2023

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Everything you need to know about Junk Bonds

In an era where financial security holds utmost importance, people tend to prefer saving over spending. Saving more money might help you have a decent corpus, but you might be cutting down on your expenses. A better alternative to saving more is to invest that money and multiply it over time. There are several investment options ranging from Fixed Deposits and National Pension systems to the stock market and crypto. Out of many investing options, there is another option that investors are looking for — Junk Bonds. A junk bond is a new investment option that has emerged quite recently. It functions in a certain way and is mostly issued by the government and various other corporations. It is also known as a high-yield bond which is rated below investment grades by different credit rating agencies. Well, do you want to know the meaning of a junk bond, and how to invest in it? [B-01] Then this article is solely dedicated to junk bonds and their significance. This article will help you understand the meaning, purpose, pros, and cons of having a junk bond. What is a junk bond and what is its significance? A junk bond or a high-yield bond is an investment option that is rated below the investment grades by different credit agencies. These investment-grade bonds are generally a higher-risk option as compared to several other investment schemes like FDs, mutual funds, etc. These bonds are mostly issued by companies that have poor shape. The quality of the junk bonds might also vary many times, depending upon the company through which you get them. There is a rating scale according to which different bonds are ranked known as the Standard & Poor’s credit rating scale. There are several markers like AAA, BBB, etc. On that scale, a junk bond is rated below BBB in the rating scale, indicating the highest risk of a company missing an interest payment. However, there are several higher-rated junk bonds that do not default and provide good returns to investors. How can a new investor start investing in a junk bond? Investing in a junk bond is an easy process, and you can learn it quite fast. You can buy junk bonds from many brokerage firms that buy and sell individual bonds regularly. If you want better outcomes and a diversified portfolio, then you can also buy junk bonds through a mutual fund or an ETF. These options are quite preferable for those investors who are eager to invest in junk bonds but lack confidence while selecting their process of investment. Having a diversified portfolio will increase your yield and lower your risk of investment. What are some of the benefits of investing in a junk bond? There are several benefits of investing in a junk bond and they are: High returns: As compared to other investment options available in the market, junk bonds provide a better yield to investors. In addition, you can increase the returns even more if you learn the basics properly and prefer a diversified portfolio. Constant cash flow: Most bonds are one of the preferable ways to provide the consistent cash flow required for your portfolio. So, as junk bonds are also not as volatile as stocks, you will maintain a constant cash flow without facing the risk of losing all the money. Diversification: As junk bonds perform differently among different financial conditions, they diversify your investment portfolio more than stocks. What are some of the disadvantages of investing in a junk bond? Unfortunately, there are many downsides to investing in junk bonds, especially for new investors. Risk of defaulting: As you already know that junk bonds are mostly issued by companies that do not have substantial financing stability, and there is a risk of default associated with it. In comparison to various other investment-grade bonds, junk bonds are the ones that have the highest risk of default. Issue of liquidity: Though junk bonds are tradable, you may not be able to trade them as frequently as investment-grade bonds. So, in case you had a financial crunch or a crisis, it will be harder on your part to immediately sell them off. In some cases, you might have to compromise on a lower rate than the actual market price. Higher risk of investing in individual junk bonds: Investing in individual junk bonds possess a higher risk than investing in a collection of junk bonds. You should even consider buying a well-diversified collective junk bond to increase the returns and minimise the risk factors. [B-02] The Bottom Line: Junk bonds have become a bit popular in recent times because they provide high returns to investors. Furthermore, they also provide a constant cash flow benefit to the investors to maintain the steadiness of their portfolio. They also diversify your investment portfolio more than that stocks. However, investing in junk bonds also has many risks involved with it, which you must be aware of before jumping into the process. You should be aware of all the downsides and conduct sample research before buying any junk bonds. You should prefer choosing a company that has a strong financial footing and ensures no default during the interest payment. You can discuss investing in junk bonds with your financial advisor and then reach a consensus before investing in it. In case you have come this far, it means you are a keen reader of topics like finance and investment. If that’s the case, you should visit Piramal Finance to find highly engaging content on topics like loans, investment schemes, etc.

08-11-2023

Know More

9 Easy Ways To Save More And Spend Less

Knowing your earnings and spending habits is very important, especially if you want to save your money. In this fast-paced world, it becomes difficult to find practical saving plans to help you spend wisely and manage your finances. One of the main reasons it is difficult to stick to good saving schemes is excessive purchasing, which adds extra financial stress to your budget. For some people, it is nearly impossible without adhere to strict saving plans, no matter how much they try to control their spending. This article explores nine saving plans to help you save more and spend less money. [B-01] 9 Easy Saving Plans Here are nine saving plans you can adopt through which you can save the money that you earn. By spending less, you can save more and be in better financial health. Clear your debts The first step in many effective saving plans is clearing your debts. If you have multiple debts, such as loans, a significant portion of your income and savings will be put aside for repayment. The best way to clear your debts is to plan your repayments on all debts, small and large. It must be remembered that before you can start saving more money, you must pay back all the money you owe. Manage your credit cards. Most saving schemes will tell you that managing your credit card payments is one of the best ways to save more and spend less. You should start by setting up a plan to promptly pay your credit card bills every month on time to prevent being charged penalties and having your credit score lowered. A practical method that most people use is not storing their credit card data online to avoid overspending. Furthermore, you can set a spending limit by carrying cash or only one credit card when you go shopping. Plan Your Grocery Shopping You may be amazed by the effectiveness of saving plans related to grocery shopping. Plan your meals a week in advance and allot a fixed amount of money for your grocery shopping. This will keep you from unnecessarily splurging on extra food and goodies every time you shop for food. Another easy method to save money is to cook your meals at home rather than eat out at restaurants or order in. If you are tempted by the variety of options you see on food delivery apps, you can uninstall them. When you can buy the groceries you need for the week and cook at home instead of going out to eat, this is an excellent way to save money at restaurants. Cancel excess subscriptions. With the plethora of entertainment apps and websites, you may unknowingly be paying for subscriptions that you seldom use or do not even realise you have. This is very common in the case of automatic subscriptions. Look through your account statement and cancel the subscription you do not regularly use. It could be a subscription to a streaming service or an app membership plan. Another good part of saving plans is sharing your subscription fee with friends and family members. For example, a single subscription can include multiple users on streaming platforms. Plan large purchases. Before you carry out large purchases, determine whether you need them. For example, if you already have a TV in your home but want a bigger screen with advanced features, carefully assess if your purchase is a priority. In most saving schemes, it is helpful to make a list (with pros and cons) containing the reasons you want to make a large purchase. Then, if you decide to purchase the item, search for good deals and offers from multiple sellers. Plan Your Bonus, Rewards, and Refunds At least once or twice a year, you will get bonuses, tax refunds, etc. Once you get this money, do not spend it immediately but rather, put it to good use. This includes more than just keeping the money in a bank account. For example, if you have a student loan or credit card bills due, use this money to pay them back. If you do not have debts, a good suggestion in most saving plans is to create a separate account and keep the money aside for emergencies. Reduce your energy bills. An environmentally friendly part of good saving plans is to save as much energy as possible by, for example, replacing energy-consuming bulbs with smarter LED bulbs. This reduces the amount of money you spend on electricity, reduces your carbon footprint, and helps you do your part to protect the environment. Replace Vacations With Staycations Whenever you plan a vacation, try to replace your vacation with a staycation, a holiday in the country or even the city you live in. A staycation can be enjoyable if you plan trips to local attractions with your friends and family. Instead of going overseas, you can save on airline tickets and hotel accommodations by travelling domestically. When it comes to spending less and saving more, cutting back on expensive holidays is a good part of your saving plans. Sell unused goods. Decluttering is good not only for the space in your home but also for your savings. Many people reorganise their belongings and hold a yard sale of unused items such as clothes, furniture, or electronics in good condition. With apps, you can even do this online from the comfort of your home. [B-02] Conclusion At the beginning of each month, make a plan to pay your bills, subscriptions, rent, etc., on time. With good saving plans such as those mentioned in this article, you can control your spending and end up saving more money. As with all habits, good financial discipline takes time to master, but once you make it a regular practice, you will be in better control of your finances. For more useful articles like this one, visit the Piramal Finance website and receive more financial guidance and information on effective saving plans!

08-11-2023

Business Loan

Finding a Loan for Your Business Needs in 2025

No matter how big or small a business is, it needs money to do everything it needs to do. Funding is required not only as a one-time investment but also regularly as working capital. Not everyone will always have enough money to invest in a business when needed. Also, some days you’ll need a lot of money, and others you won’t. You would all like to get a loan for business with a lower interest rate. This article will provide information about small business loans and interest rates for business loans. [B-01] Average business loan interest rate in India The typical interest rate for business loans varies depending on the loan type. Business loan interest rates typically range from 15% to 24% annually. Since many business loan types are available for clients with a wide range of credit scores, interest rates are ambiguous. Types of Business Loan Interest Rates There are two main interest rates for business loans: those that go down over time and those that stay the same. These are fully explained here: Reducing interest rate Reducing interest rate is the rate that is calculated monthly on the remaining loan value. In this method, the EMI includes the principal and the interest due each month on the loan amount still owed. With each EMI payment, the amount still owed on the loan goes down. So, the interest rate for the next month is based only on the loan amount that is still owed. This interest is calculated by multiplying the interest rate per payment by the remaining loan amount. Flat interest rate A flat interest rate is the interest rate calculated on the total loan amount over the life of the loan without considering that the monthly payments will reduce the principal amount and, in turn, the interest rate. So, the effective interest rate is much higher than the nominal flat rate. This is how you figure out a fixed rate of interest. The formula for figuring out a fixed interest rate is Interest Payable per Payment = (Original Loan Amount Number of Years Interest Rate p.a.) / Number of Payments. Reasons Why You Want to Take a Loan for Business Getting a loan for a business can be a good idea. You can buy new products or hire more people with the extra money. This will help your business make more money and grow. Let’s look at why you might want to take out a loan for business: Starting a New Business Before a business can take its first step, there are a lot of things that need to be done and things that need to be set up. Capital is essential to pay for all of these, and a small business loan can make it easier on the owners. For business growth If a business is doing well and the owners want to grow it, a loan for the business would be beneficial. It can be used to pay for the creation of new products, hiring, promotion, marketing, and many other things. For Renovations It is essential always to update your office space so that you can get more customers. Getting a loan for business is the best thing to do if you want to fix up the place and add new, high-tech equipment. To get new business opportunities If you want to take advantage of a business opportunity on the market, you might need money. Loans for business can help you get money no matter where or when you need it. To stand out from your competitors Today, there is competition in every field, so it is essential to stay ahead of your rivals. Using a loan for business, you can install high-tech machines, digitise your business, switch to better software, etc. Minimum Personal Credit Scores for Small Business Loans Here’s how your credit score affects your chances of getting a small business loan. Remember that this is only one of many factors considered by lenders during the approval process. A credit score of 550 or lower When small business owners have credit scores in this range, most lenders refuse to offer them credit. Sometimes you have to be eligible for a loan from a specialised lender. But the interest rates will likely be very high. You may also be able to obtain merchant cash advances or invoice financing. But do your research and proceed with caution, as always. A credit score between 550 and 600 Most banks cannot approve your loan for business at this point. The interest rates will still be high even if you have access to alternative lenders. A credit score between 640 and 700 This is still too low to meet the criteria for most banks’ loans. There are a lot of lenders available to you that offer reduced costs. But the interest rates will still be higher than they would be for traditional loans. A credit score between 700 and 750 Here, you can apply for traditional bank loans and loans for business. Most financing options are still available. But you will usually need vast documents and proof of your company’s ability to pay. A credit score of 750 or higher You’re in the best possible position with low interest rates and useful repayment terms. With this high credit score, you can obtain affordable financing. [B-02] Conclusion Loans for business are an effective tool for funding, launching, and growing your business. As a firm owner, you may seek funding to keep your firm running, expand your locations, buy new assets, or recruit additional staff. All of this is made possible by a small business loan. Cash flow management is a vital part of every firm. For most small firms, timely access to financing is critical to survival. But how can you get loans when you currently need operating capital? If you need a small business loan in India, the internet can deliver the finest loan offers from around the nation right to your door.

08-11-2023