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Schemes

All the benefits of pradhan mantri awas yojana gramin you should know

Pradhan Mantri Awas Yojana Gramin is the main program initiated by the central government to build new homes for everyone. The scheme is meant for the poor in rural areas. It would give those living in kutcha and pucca houses a clean kitchen and all the basic things they need. This scheme has replaced the Indira Awaas Yojana, a similar social welfare program begun by the government in 1985. Pradhan Mantri Awas Yojana Gramin is known as one of the most comprehensive social programs. [B-01] What is PMAY-G? The primary objective of PMAY-G is to provide pucca housing with some of the basic necessities. This initiative is for people who do not own a home, live in houses that are severely damaged, or have kutcha houses. The minimum size of the homes under the PMAY-G program is 25 square meters. The PMAY-G comes under the Housing for All program. The federal government projects that this program will be fully implemented by 2022. Features of the Pradhan Mantri Awas Yojana Gramin Scheme The most important parts of this comprehensive plan for social welfare are: The central and state governments would share the cost to help the rural poor pay for housing. The ratio of the central government’s share to the state government’s share is 60:40. The government would provide total assistance of Rs. 1.20 lakhs to all units in non-hilly states. For the union territory of J&K, the northern states, and the Himalayan states, the ratio is 90:10. Also, they will get the assistance of Rs. 1.30 lakh for each unit. The PMAY-G project will replace all the temporary homes. Each recipient of assistance under this program would also receive ₹90.95 per day for unskilled labor under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS). The SECC and caste census will determine who will get aid based on how well off they are. After that, the relevant gram sabha will look into the data and pass it on to the government. Under the Pradhan Mantri Awas Yojana Gramin, the payments will be transferred straight into the bank accounts of the beneficiaries. Aadhaar data will also be checked to ensure that payments are made to everyone who needs them. Swachh Bharat Mission-Gramin (SBM-G) and MGNREGS together will provide up to Rs. 12,000 for the construction of toilets. Pradhan Mantri Awas Yojana Gramin: Benefits 1. Generous Financial Aid for All Citizens Depending on the income level, the government offers credit-linked subsidies to economically weaker sections (EWS), low-income groups (LIG), and middle-income groups. The only condition is that the applicant or any of their family members should not already be homeowners. 2. Housing for All Social Classes The government intends to build 2 crore affordable homes in well-known urban areas for people who qualify under the PMAY scheme. In states like Maharashtra, West Bengal, and Tamil Nadu, the development of such residences has already started. The government wants to raise the living standards of several people through this development scheme. 3. Nationwide Housing Construction The PMAY program is not only available in urban areas. Rural low- and middle-income people are also given consideration. The Pradhan Mantri Awas Yojana ensures growth in real estate and other related sectors in remote regions. 4. Employment Advantages The Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), which is part of the PMAYG 2021–22 scheme, offers the applicants 90–95 days of employment in addition to housing support. 5. Support for Building Toilets Each beneficiary will also receive ₹12,000 to build toilets, whether through the Swachh Bharat Mission or another program. 6. Different Housing Designs In accordance with terrain, climate, culture, and other housing practices, the beneficiaries are given a choice among several modern house designs. Pradhan Mantri Awas Yojana Gramin: Apply Online Here are the steps for Pradhan Mantri Awas Yojana Gramin online apply that should be followed to add a new beneficiary to this program: Step 1: Visit the PMAY website Step 2: Tap on “Citizen Assessment” and then click on “For Slum Dwellers” or “Benefits under other 3 components,” depending on what you need. Step: 3 – Enter Aadhaar card information Step 4: This will take you to the application page, where you’ll need to fill out all the information correctly. Step 5: Fill out your name, phone number, other personal information, bank account information, and information about your income, among other things. Step 6: When you’re done, click “Save” and enter the captcha code. Step 7: Click the “Save” button to finish. Now that the application is finished, you can take a printout. How to Apply Pradhan Mantri Awas Yojana Gramin Offline? People can apply for the Pradhan Mantri Awas Yojana Gramin program offline. To do that, you can go to a Common Service Center (CSC), which is run by the governments of the state and union territory. There, you have to pay Rs. 25 plus GST and fill out the application form that the staff gives you. It’s important to note that the Ministry of Housing and Urban Affairs (MOHUA) has not given permission to any private organization or individual to collect this fee from any recipient of this scheme. PMAY-G: Exceptions It gave a list of reasons why someone would not be eligible for a Pradhan Mantri Awas Yojana Gramin Rural unit. The Pradhan Mantri Awas Yojana will not help the family if an adult member is literate and over 25. Taxpayers and tax professionals People who own landlines and refrigerators should not use PMAY-HFA. People who work for the government and earn more than Rs 10,000 per month are not eligible for assistance under the Pradhan Mantri Awas Yojana. People with a Kisan Credit Card (KCC) limit of Rs 50,000 or more cannot use PMAY-HFA (rural). The Pradhan Mantri Awas Yojana is not open to anyone who possesses motorized two-wheelers, three-wheelers, four-wheelers, farming implements, or fishing boats. [B-02] Conclusion This program aims to give every homeless person living in a kutcha or old house a pucca house with basic amenities. If you want more information, please visit the Piramal Finance website.

08-11-2023

Other

Benefits of Opening a Current Account for Your Business

When it comes to the management of a company, there are a variety of factors that need to be considered. These factors include, but are not limited to, running the business day-to-day, and paying employees’ salaries every month. It also includes taking debt into account along with expenses when growing and expanding the business. A current account is an absolute necessity for any kind of business. The purpose of this piece of writing is to explain what a current account is and why it is beneficial to companies. [B-01] What Exactly is a “Current Account”? Having a separate bank account for a company makes it much simpler to record financial transactions. It also helps to manage cash flow and figure out tax obligations. A business current account allows the same depositing, withdrawing, and balancing of funds as a personal current account. Almost all commercial banks in India allow customers to open current accounts. Business owners and entrepreneurs who do a lot of transactions can use these types of accounts to their advantage. Since this number is generally high and the amount spent per transaction can be large, interest is usually not added to the balance. Benefits of Maintaining a Current Account Once you know what a current account is for a company, you can start thinking about all the advantages it offers. There are numerous advantages to opening a business current account: – With an unlimited transaction limit, account holders no longer have to worry about how much money is coming into or going out of their accounts. Owners of accounts are free to make as many or as few withdrawals as they like. This ensures a great degree of operational flexibility for businesses. Maintaining financial privacy by keeping a separate bank account for business transactions is very helpful. It allows owners to keep their finances from interfering with their professional initiatives. It is much simpler to track incoming cash, which improves budgeting and planning. When it comes time to pay taxes and think about deductions, having clear and understandable financial records is a huge help. The business’s financial data is presented in a clear manner, making it possible to draw wise conclusions. The statement will specify the location and parties involved in the transactions. An overview of a client’s banking relationships is included in the immediate financial reports. Most banks make it available to their customers. Real-time transaction data is also provided, which is useful for making better business decisions. All company transactions may be handled quickly and on schedule with the help of a current account. When these transactions are completed, it is easy to maintain friendly relationships with both vendors and buyers. Improves credibility. Having a separate checking account for your business is a good way to establish your company’s credibility in the eyes of customers. A company that doesn’t use its current account looks unprofessional and raises doubts about its trustworthiness. Other perks of current accounts are like those found in traditional savings accounts. Almost all banks offer free demand drafts, NEFT and RTGS transactions, and Pay Orders to business clients. All of this is in addition to the limitless withdrawals and deposits. Current Account Structures Banks offer different types of current accounts to meet the different needs of their customers. When you open a current account, you must have a clear idea of the kind of transactions you intend to do. Here are some of the typical current account types that banks provide: Standard Current Accounts A specified monthly average balance and minimum balance requirements apply to this non-interest-bearing deposit account. Chequebooks, debit cards, an overdraft facility, etc. are all available. Other advantages may include free RTGS and NEFT transactions, online banking, SMS banking, and so on. Current Accounts Packaged The bundled accounts provide account holders with a wide range of benefits. Other services like roadside assistance, medical care, and travel insurance are also included. Single-Column Cash Register Simple cash accounts or single-column cash book accounts let you make daily transactions. But they don’t have features like an overdraft facility. It is suitable for companies without active bank accounts. It is a book that keeps track of daily transactions. Current Accounts With a Premium It provides exclusive discounts and benefits to account holders. The account includes a lot of customization choices. This account is suitable for people who deal with a lot of critical financial matters. Accounting for Foreign Currencies This account is an ideal option for individuals or enterprises that often transact in foreign currencies. [B-02] Conclusion Many factors contribute to a current account’s significance for a company. Traders may rest easy knowing that their transactions will be processed accurately. Also, there is no cap on the volume of business they can conduct in a particular time frame. In case readers are wondering whether a current account is necessary to operate a business in India, the answer is no. Thus, it is recommended that business owners make use of it for the sake of smooth business operations. A current account can be opened for them at any of India’s commercial banks. Before opening a checking account, business owners should look at what different banks have to offer. They should never let themselves get caught off guard in the future by failing to read the fine print. Business owners need to keep their personal and business finances separate. They should have separate bank accounts to make this possible. Contact Piramal if you have any doubts or need help understanding the benefits of opening a current account for your business. Piramal will guide you well and make your mind clear.

08-11-2023

Investment

Best SWP Mutual Funds to Invest in 2022.

A Systematic Withdrawal Plan (SWP) lets investors withdraw money from their investments at regular intervals. It is similar to a systematic investment plan (SIP), which enables them to invest a certain amount at regular intervals. The investor has full control over the SWP and can choose its size, schedule of payments, and length of time. Withdrawals from SWP may be charged an exit load. This makes SWP plans an excellent bargain for investors who require instant access to their funds. Investors use an SWP when they want to get a steady flow of money from their investments. SWP has multiple use cases, like retirement, EMI payments, meeting regular expenses, etc. But how can you choose the best SWP that suits your needs? Let’s find out. [B-01] Important Factors Before Choosing the Best SWP Plan There are certain things that you should remember before selecting the best SWP in a mutual fund. Verifying the mutual fund implies that the company’s stability and longevity are your first steps. Secondly, you should consider the asset allocation approach and the fund’s risk-adjusted returns. Thirdly, you need to see whether investing in SWP via a mutual fund would incur any fees or not. Here are some other factors you need to consider before selecting an SWP plan: Financial Requirements When deciding how much to invest, it’s important to consider your future financial needs. This will involve determining the goals of your investment. It can be retirement, purchasing a house or car, etc. Consistent Earnings You need to determine your needs before going for SWP. If you do not need constant access to funds, you may opt for a lump sum withdrawal. Monthly salary withholding provisions are a common type of SWP plan. The monthly payment can be set based on your requirements. Retirement Income SWP can become the basis for your retirement income. You can list your preferred mutual funds to start a simple plan for withdrawing money over time. SWP plan, if set up correctly, is an excellent way to provide steady income during your retirement years. Few people may feel more secure if they are guaranteed a monthly income. In this case, a systematic withdrawal plan is helpful. Impact on Taxes If you use the best SWP in mutual funds to supplement your monthly income, you should pay special attention to the tax implications. The distribution through SWP will be subject to capital gains tax. You should know that the fund you invest in charges a capital gains tax. For instance, long-term capital gains on stocks (gains accrued over more than 12 months) shall be taxed at 10%. Whereas short-term capital gains (gains accrued over less than 12 months) shall be taxed at 15%. Market Conditions Before you invest in an SWP plan mutual fund strategy, it’s important to think about how the stock market is performing. This is because mutual funds are market-linked plans. If the market is performing well or is expected to rise, then it is the right time to invest in SWP. In the long run, markets have always risen. If you are investing with a long-term horizon, then you don’t need to panic much. Best SWP in Mutual Fund in India Here is a list of some of the best SWP in mutual funds in India: SBI Equity Hybrid Growth Plan SBI Equity Hybrid Growth Plan is a high-risk option from SBI Mutual Fund. Since its inception on December 31, 1995, investors have been able to place their money into either debt or stocks via this fund. This investment’s minimal risk makes it suitable for people who want their money to grow over time. The plan’s goal is to provide investors with liquidity and long-term capital growth. The plan invests in a variety of asset classes. This includes a variety of stocks and bonds from fast-growing companies and safe haven investments like government bonds. A diversified investment portfolio reduces your portfolio’s risk. ICICI Pru’s Equity and Debt Fund The ICICI Pru Equity and Debt Growth Plan is an ideal hybrid fund strategy from ICICI Prudential Mutual Fund. Allocating funds across equities, money market instruments, and some fixed income is part of the plan’s investment strategy. It aims to deliver a passive income source and long-lasting capital appreciation. Quant Absolute Funds – Growth The Quant Absolute Fund Direct-Growth invests in both equity instruments and fixed-income securities. This allows investors to generate passive income along with the growth of their investments. Franklin India Equity Hybrid Growth Plan This plan gives investors access to equities, the most alluring asset class for long-term investment. Investments in a diversified, high-quality portfolio aim to produce a consistent income stream and long-term capital growth. Canara Robeco Equity Hybrid, A Long-Term Growth Investment Program With an eye on high annual returns and long-term growth, the Canara Robeco Equity Hybrid Growth Plan uses a balanced portfolio with a hybrid fund structure. The plan’s ultimate objective is to curate a well-diversified investment portfolio that generates high annual returns and substantial capital appreciation. In March 2000, the initiative became a permanent part of the system. [B-02] The Bottom Line SWP in mutual funds provides a wide range of opportunities that make investing accessible to everyone. SWP plans allow you to withdraw systematically from your investment. Thus, you benefit from a regular income while you stay invested. Once you are clear on your goals, selecting the best systematic withdrawal plan becomes easier. To learn more about SWPs and other investment options, you can read similar blogs on the Piramal Finance website.

08-11-2023

Cards

Everything You Need to Know About Credit Card EMI

Once you learn how to use one responsibly, a credit card may be a great financial resource. Credit card schemes provide you with the freedom to make large purchases in preparation for future events, and then pay for them over time with manageable monthly instalments. Once the sum is converted into EMI, the outstanding balance is repaid monthly, much like a loan. Credit card issuers often allow customers a repayment duration of anywhere from three months to three In this. In this article, we’ll talk about credit card EMIs. [B-01] What Are Credit Card EMIs? There has never been a more convenient time to use a credit card for cashless transactions, what with the widespread adoption of digital payment methods. Your credit card debt can be converted into an EMI the same way a personal loan can. For people who can’t afford to pay off their credit card balances in full, the option of making payments in instalments over time is a good compromise. It’s also a good option for debtors who would rather pay down a portion of their debt now and let the remainder accrue interest. How Does Credit Card EMI Work? One perk of availing of a credit card scheme is the grace period. This is typically 45-55 days but varies between different financial institutions. It allows you to pay off your purchases without paying interest. The statement period (or billing cycle) is when interest is not charged, starting on the first day of the period and ending 15-25 days following the last day of the statement period. However, when making a sizable purchase, it may be outside of most people’s financial means to make a full repayment within the interest-free grace period. Banks respond to this need by providing credit card EMIs. EMI programs are typically issued in conjunction with a retailer or supplier. A minimum purchase requirement is typically in place before you can use a credit card’s EMI program. If you choose the credit card EMI plan, you’ll be able to spread out your payments over 3, 6, 9, 12, or 24 equal monthly payments. Each bank’s interest rate for the Credit Card EMI program is different. How to Convert Credit Card Payments to EMI? Users can choose to divide their credit card charge into monthly instalments at the time of purchase if they so choose. If you have enough cash on hand to make a down payment, you can do so, and the rest of the price can be paid in instalments over time. Well, it’s worth noting that it’s not just up to the credit card holder to decide whether or not to repay the credit amount in instalments. The credit card issuer/bank has considerable say over whether a customer can pay down their balances via instalment payments. Paying off a credit card balance is similar to paying back a bank loan. The bank will lend you the money you need to pay off your credit card balance, and you can make your payments in instalments that best suit your budget. In order for the bank to extend credit to you, it must be certain that you will repay the money on time and not abuse the privilege. Before deciding whether or not to convert your credit card payments to EMIs, banks will look at your credit score, credit repayment history, other loans you may have, etc. Factors to Consider While Converting Your Credit Card Bills into EMIs Here are some things to think about before deciding to turn your credit card payments into EMIs: Reducing Balance Method Interest on the EMI amount is often calculated using the diminishing balance approach by banks. Therefore, interest will be added to the unpaid loan sum on the last day of each month. If you borrowed Rs. 50,000 and paid off Rs. 10,000 in the first month, the interest you pay the following month would be calculated based on the remaining Rs. 40,000. In this manner, your monthly interest payment will gradually decrease. Rate of Interest It’s important to keep in mind the interest that a bank will tack onto your credit card statement when you pay it off in instalments. Interest rates on credit cards, however, differ between financial institutions. The down payment, length of payments, interest rate, and other variables all play a role. Generally speaking, the interest rate will be lower for a shorter-term loan. Therefore, the loan amount should be repaid as quickly as possible. Processing Fee Some financial institutions may impose a nominal fee for transforming a credit sum into EMIs, while others may not charge any fee at all. During the holiday season, many banks reduce or eliminate this processing cost, making it easier to shop. Period of Repayment The length of time you have to pay back the loan is flexible, falling between 6 months and 2 years. In any case, it’s worth noting that the interest rate will be lower if the repayment period is shorter. Termination and Foreclosure In the event that you are successful in accumulating the outstanding loan amount, you will be able to repay the loan before the end of the period during which you are required to make repayments. Your loan may be foreclosed upon or cancelled. However, in such circumstances, different banks may charge a minor foreclosure fee while others may not. Tips To Make Credit Card EMIs Work For You Go with a shorter term The larger the loan term, the larger the interest payment will be. The minimal term should be one in which you can afford to make the payments. Be cautious During the holiday season, several credit cards waive the processing fees associated with the EMI option. Make use of it. Read the terms and conditions properly Any of the cards do not impose prepayment penalties. Prior to making a final decision, it is important to learn about the pre-closing terms and circumstances. Feel free to inquire It’s possible that during the holiday season if you choose easy EMI credit cards, you won’t be eligible for in-store cash savings. Many stores provide discounts on things bought straight up by cash/card only. But if you ask for discounts, you might be in luck because the holiday season is a time of goodwill and generosity. Don’t default If you choose the EMI option with your credit card, be sure you pay on time every time. Your credit score will take a hit if you don’t pay your EMI on time every month. [B-02] Conclusion Though it’s simple to have your credit card payments restructured as instalment payments, there are several issues to think about before making the switch. First and foremost, you should know that not all credit card issuers provide EMI instalments and that not all credit card customers would qualify for it. If you must use your credit card for an EMI purchase, make the loan for the shortest possible duration. If you want to know how much you can afford to charge on your credit card, an EMI calculator will be very useful. Want instant funds? Apply for a quick personal loan with Piramal Finance and get up to Rs. 10 lakhs.

08-11-2023

Know More

Four Ways To Get Your Travel Fund Ready For That Upcoming Vacation

Vacations can be a fantastic way to escape life’s stresses, but they can also be costly. If you’ve been saving your extra cash to take that long-awaited vacation, it might help to learn how to save money, so you have more cash available for your upcoming trip! The four tips in this article should give you plenty of ideas about how to get your travel fund ready for your upcoming vacation! [B-01] What is a Travel Fund? A travel fund is savings account you create to save up for your next vacation. You can start by setting aside a minimum weekly amount and then increase your contributions as you get closer to your vacation date. Once you’ve saved enough money, it’s time to start thinking about your destination! If you have flexibility in your schedule and budget, consider visiting multiple countries on one trip. How Much Minimum Travel Fund Should You have? Having a travel fund before you embark on your journey is important, as this will help you avoid last-minute emergencies. To plan for such events, knowing how much minimum travel fund you should have in India is important. The amount of money needed varies depending on the type of trip you are taking. Here are four guidelines that can help you calculate what is suitable for your trip – -The length of your stay -The cost of transportation -The cost of accommodations -What kind of food do you want to eat 4 Ways to get your Travel Fund Ready There are multiple ways that people opt to grow their travel fund. Some of the prominent ones are: 1) Set up a dedicated savings account To get your travel fund ready, set up a dedicated savings account. It is the first step to getting your money saved and where you will deposit all of your extra cash that you’re not already spending on necessities. It’s important to ensure that this account is easy to access and has low or no fees to take advantage of unexpected windfalls like tax refunds or bonuses at work. Be sure to keep an accurate record of the deposits and track how much money has accumulated over time. Opening a savings account may seem unnecessary, but it’s the most important. It can also be the basis for getting a personal loan for travel in the future. 2) Do an Additional Job to have Additional Income flow for the Travel Fund If your goal is to save for a vacation, then the best thing you can do is get another job. The more money you make from your additional job, the faster you can reach your goal. Just think about how much each hour of work can contribute towards that coveted travel fund! Nowadays, many people have side hustles and have succeeded in doing so. Getting an extra gig may seem challenging, but you can surely try. One way is to have an updated resume that clearly outlines all skills and talents and any previous experience or qualifications you have acquired over time (although this may not always be necessary). Click on Ways to Begin a Travel Fund for Your Future Vacation – Funender.com for more details. 3) Try to Reduce Your Debt to increase Your Travel Fund To make your travel fund more accessible, you should try to reduce any existing debt. It can be done by looking at your budget and making some cuts where necessary. Doing this will increase your money for your vacation without having to dip into your savings or take out a loan. In addition, try to save as much as possible before setting off on your journey. You should strive to save at least 20% of the total cost of the trip to avoid using a credit card or cash advances while abroad. Saving up beforehand will allow you to focus more on fun activities and less time worrying about finances during your trip. 4) Travel Loan Offers An excellent way to prepare your travel fund for a vacation is to take out a loan for travel. Taking out a vacation loan has many benefits, and it could be the perfect solution for you. These loans can be taken out for a specific time to save money before your next trip. It also means that you have the funds available in advance, which could make planning easier for you. If you plan an upcoming trip, this may be the perfect opportunity to take out a travel loan! You need to talk to the financial institution that will give you the best deal in terms of the interest amount that you have to return. The first thing to consider when looking for a travel loan is the length of time you will need the funds. Next, consider what type of traveller you will be while abroad- those who want to partake in extreme activities might need more funds than those who enjoy wine tours or culture tours. Finally, ensure you read all information carefully- not just about interest rates or repayment periods- but also any possible exclusions that might be part of the agreement. Additionally, when travelling, it’s important to keep your expenses low. One way to do this is using a rewards credit card that doesn’t have foreign transaction fees. Plus, many cards in India offer great bonuses when you use them abroad. Rewards can be points or cash back, and these bonuses’ value can add up! Click on Travel Loan – Interest rates, Eligibility, Document Required & Apply Now (bankbazaar.com) for more details. [B-02] Conclusion Start now if you want enough money saved up for your trip. The more you wait, the better the chances are that something unexpected will happen, and you’ll have to save even more. Once you’re ready with a plan, budgeting what you’re saving can help make sure there’s always money left over in your bank account. That way, when that once-in-a-lifetime opportunity arises, you’ll be able to take full advantage of it! For more information about growing travel funds, visit PersonalLoan (piramalfinance.com).

08-11-2023

Investment

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

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

08-11-2023

Investment

Understand how much to invest in mutual fund

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

08-11-2023

Know More

All You Need to Know About Blue Chip Mutual Funds

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

08-11-2023

GST

Things You Should Know About Mahagst in India

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

08-11-2023