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Investment

In Which SIP Should Beginners Invest?

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

08-11-2023

Personal Loan

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

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

08-11-2023

Home Loan

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

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

08-11-2023

Personal Loan

All You Need To Know About Student Credit Cards In India

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

08-11-2023

Personal Loan

Everything You Need to Know About Used Car Loans in India

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

08-11-2023

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