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Personal Loan

Interest Rates on a Tractor Loan for Agriculture

Are you looking for a tractor loan? Looking for the best tractor loan deal? Then you have come to the right place. Tractors are critical to the success of farms and other agricultural endeavours. It is also utilised in a variety of ways. Many people get tractor loans to help them with their farming. Several lending institutions, including banks and NBFCs, provide loans for this. This kind of tractor loan is extremely popular in rural and underserved parts of India. A vehicle loan from a bank might be used to purchase a tractor. But it is preferable to get a tractor loan that is suited to the borrower’s requirements and has better conditions. [B-01] Tractor Loan: A Brief Description Farmers may acquire credit for items like tractor finance. This tractor loan may be applied for by either an individual or a group. This loan is similar to a vehicle loan. If the borrower fails to make payments, the loan will be terminated. The tractor will be repossessed. Conditions for Obtaining a Tractor Loan The rules for obtaining a tractor loan may vary depending on where you get the loan. However, there are a few ground principles: Any Indian citizen or permanent resident may apply for a tractor loan. A single person, a group of persons, or both may apply for a loan. Anyone, whether a person or a corporation, may apply for this tractor loan. You must demonstrate that you have a steady source of income and the ability to repay the loan. You must own at least two acres of property. A Tractor Loan’s Important Components The following factors distinguish tractor loans from other types of loans: The margin percentage for a tractor loan begins at 15%. The tractor and its equipment serve as collateral for the loan. In India, tractor insurance is essential. It may be obtained through the bank that gave the money or from any other respectable insurance firm. All of the tractor’s accessories will secure the loan. Land might be used as additional security for a bank loan or financing. These tractor loans’ annual percentage rate (APR) must be less than 12%. The maximum amount of time you may borrow is seven years with a one-month grace period. Payment options fluctuate from lender to lender. But they are often paid monthly, quarterly, or every six months. The fees for obtaining this kind of loan are typically about 0.5 percent of the amount borrowed. You may borrow up to 90% of the tractor’s purchase price. Low-interest rates, payback periods ranging from 12 to 84 months, and various flexible payment alternatives are among the terms and conditions (post-dated checks, standing instructions, electronic clearing system, etc.). Some financial organisations provide additional coverage on top of what the customer currently has. This is in the event of death or a complete and permanent disability. Most banks will lend money to purchase tractors without requiring collateral. Anyone who satisfies the requirements and can show who they are and how much money they earn is eligible to apply for a tractor loan. Farmers aren’t the only ones who can acquire these kinds of loans. Advantages of a Tractor Loan Here are some of the essential benefits of obtaining a tractor loan: Methods that are simple to grasp and learn: Tractors may be used as collateral for loans in the form of tractor loans. These are instances of secured loans. This makes it easy to apply for and get a tractor loan. Purchase via the internet: Anyone interested in this financing might apply for it online. The authenticity of the papers will be determined by inspecting them. Any other communication, such as money transfers, is done via phone or email. A low-interest rate, on the other hand: This money is part of a credit package for high-demand sectors. It is used in agriculture. So the financing rates are much lower than those for automobiles. While you may acquire a tractor loan for any vehicle, tractor loans have lower interest rates than ordinary car loans. As a result, this is the best option. Streamlining paperwork: Obtaining a tractor loan typically requires normal documentation. Priority sector loans and secured tractor loans, in particular, have substantially quicker processing timeframes. You can determine if an application is genuine by requesting evidence of identity, a utility bill showing your current residence, and a pay stub displaying your current salary. Documents Required to Get a Tractor Loan The following is a list of the documents you will need to get a tractor loan. Even though the specifics vary depending on the supplier, you will always require the papers listed below. Evidence of your identity: Any government-issued photo ID and the Bank Sign Verification are acceptable forms of identification. A driver’s licence, an Aadhar card, a voter ID card, a marksheet, or any other official document with your birth date is a fantastic approach to establishing who you are. Documents in possession: Possession Letter, Sales Receipt, Tax Receipt, Water Bill, and Electric Bills Providing evidence of earnings: Your past six months’ tax return and financial records All the things listed above, as well as a completed application and a current picture, are required for the tractor loan. [B-02] Summing up Since money issues continue to arise, many farms and companies cannot purchase tractors. So, applying for a tractor loan is the best course of action. The interest rate on a tractor loan might range between 8% and 20%. Interest rates are determined by various factors, including a borrower’s CIBIL score and collateral amount. The majority of loans are repaid over a one to seven-year period. A team of knowledgeable advisers from Piramal Finance is available to assist you at every stage of the application process. This boosts your chances of being accepted and receiving your funds soon. Piramal Finance is one of India’s top non-bank finance organizations. Piramal Finance’s specialised staff of professionals is accessible 24 hours a day, 7 days a week, to assist existing and new clients.

08-11-2023

Dream Mobile

Best Phones under 30000 in India - Price & Specs

Searching for the best phones under ₹30,000 in India? Whether you're a gamer, a photography enthusiast, or someone who values long-term software support, this guide will help you discover top smartphones that deliver premium features without the premium price.With so many new launches, mobile phone market has always been competitive. Hence, this article lists some of the best phones under 30000 to help you make the best choice. Best Smart Phone Under 30000 1. Samsung Galaxy A55 5G2. Nothing Phone (3a) Pro3. Motorola Edge 60 Pro4. Vivo T3 Ultra5. iQOO Neo 10R6. OnePlus Nord 47. Realme 14 Pro Plus 5G8. Vivo V50e Samsung Galaxy A55 5G Price (India): ₹25,999 – ₹31,000 (varies by storage/RAM configuration; often available for around ₹27,999 during sales) Features: Display: 6.6-inch Super AMOLED, 120Hz refresh rate, HDR10+ support, Full HD+ resolution Processor: Samsung Exynos 1480 (4nm) with Xclipse 530 GPU Battery: 5000 mAh with 25W fast charging Storage: Options of 128GB or 256GB (expandable via microSD) RAM: 8GB / 12GB Camera: Front Camera: 32MP Rear Camera: Triple setup – 50MP (OIS) + 12MP (ultrawide) + 5MP (macro) Pros: Bright, smooth AMOLED screen Solid build quality with IP67 rating and Gorilla Glass Victus+ Dual stereo speakers and memory expansion support Cons: No support for wireless charging Display resolution could be better for the price Review:This phone is a dependable choice in the mid-range category, delivering excellent visuals, solid battery life, and long-term durability. However, the camera and charging speed are just average. Nothing Phone (3a) Pro Price (India): Around ₹33,999 (estimated from European pricing) Features Display: Approx. 6.77-inch LTPO AMOLED, 120Hz refresh rate, peak brightness ~1300 nits Processor: Snapdragon 7s Gen 3 with Adreno 710 GPU Battery: 5000mAh with 50W wired fast charging Storage: 256GB RAM: 12GB Camera: Front Camera: 50MP Rear Camera: Triple setup – 50MP (main with OIS) + 50MP periscope zoom + 8MP ultrawide Pros: Transparent design and unique Glyph interface Excellent camera range, especially for zoom and portraits Long battery life with fast charging Cons: Optical zoom lacks perfect stability No IP68 rating or wireless charging Review:A stylish and camera-centric device, it stands out for its design and versatility. Ideal for content creators and those seeking premium aesthetics without crossing flagship pricing. Motorola Edge 60 Pr Price: ₹33,999 Features: Display: 6.7-inch OLED, 120Hz refresh rate Processor: Snapdragon 8+ Gen 1 Battery: 5000mAh with 33W TurboPower fast charging Storage: 256GB RAM: 12GB Camera: Front Camera: 50MP Rear Camera: Triple setup with telephoto lens (likely 50MP + ultrawide + telephoto) Pros: Near-flagship performance Smooth user interface with near-stock Android Reliable camera system including telephoto Cons: Battery could perform better Software updates not as prompt as competitors Review:Great for users looking for top-tier power and clean Android experience. The camera versatility and fast performance make it a standout at this price. Vivo T3 Ultra Price (India): ₹27,999 Features: Display: AMOLED with 120Hz refresh rate Processor: Snapdragon 7 Gen 2 Battery: 5000mAh Storage: 128GB / 256GB RAM: 8GB / 12GB Camera: Front Camera: 16MP Rear Camera: Dual or triple-lens with a 64MP main sensor Pros: Smooth display and user experience Efficient chipset for everyday use Cons: Preloaded bloatware may affect UX Camera performance not class-leading Review:A well-balanced smartphone that delivers reliable performance, smooth UI, and a good display—suitable for everyday users. iQOO Neo 10R Price (India): ₹26,998 Features Display: Likely 6.78-inch AMOLED/LCD, 120Hz Processor: Expected Snapdragon 695 / 778G Battery: 5000mAh with fast charging (44W–66W) Storage: 128GB / 256GB RAM: 8GB / 12GB Camera: 16MP front camera + 64MP main rear camera Pros: Solid gaming performance Rapid charging speeds Cons: Display may not be AMOLED Average camera performance Review:Ideal for budget-conscious gamers and power users. Performance is the focus here, while cameras are decent for casual use. OnePlus Nord 4 Estimated Price (India): ₹30,000 – ₹35,000 Expected Features: AMOLED display, 120Hz refresh rate Snapdragon 7+ Gen 3 5000mAh battery with 80W fast charging 128GB/256GB storage + 8GB/12GB RAM Camera: Triple setup with main 50MP OIS Pros: Clean software experience (OxygenOS) Strong performance Cons: No wireless charging Updates slightly delayed in recent models Review:Anticipated as a solid upgrade in the Nord lineup, this model is expected to bridge the gap between mid-range and premium categories. Realme 14 Pro Plus 5G (To be launched in India) Expected Price: ₹28,000 – ₹30,000 Expected Features: Curved AMOLED display, 120Hz refresh Dimensity 7050 or Snapdragon 7 Gen series 5000mAh battery + fast charging Rear camera: Likely 50MP Sony IMX890 OIS Pros: Premium display and build Sony sensor for flagship-grade photos Cons: Software UI may feel bloated Only 2 years of major updates Review:If camera and design are key, this phone could be a great value-for-money option in the upper mid-range. Vivo V50e Expected Price (India): ₹25,000 – ₹28,000 Expected Features: AMOLED screen, ~120Hz Snapdragon 6 Gen 1 5000mAh battery 8GB RAM / 128GB storage Cameras: Dual setup with 64MP OIS + depth/macro Pros: Light and sleek design OIS-enabled camera for better low-light shots Cons: Not suited for heavy gaming Bloatware in Funtouch OS Review:An elegant device perfect for casual users focused on style, camera stability, and daily multitasking. Conclusion Great battery life, fast charging, and strong performance are key features to look for in the top phones under 30,000. Plus, you won't have to compromise on an average camera when looking for the best phone under 30,000 in India. Visit Piramal Finance if you are interested in more articles about the best-performing electronics in India.

08-11-2023

Know More

Most Important Things You Should Know About Money Management In 2022

Money management will be more important than ever before in 2022. With the growth of technology, the world is becoming increasingly interconnected, resulting in more opportunities for people to spend their money. But with these new opportunities comes the challenge of managing their finances. It’s important to understand the basics of money management, such as budgeting, saving, and investing. Knowing how to manage your money most efficiently can help you achieve your financial goals and prepare you for any unforeseen financial issues. This article will explain the most important money management tips and tricks you should know in 2022. We’ll look at budgeting strategies, ways to save money, and the best ways to invest your money. By the end of this article, you’ll know to make sound financial decisions and set yourself up for success in 2022. [B-01] What is Money Management? Money management refers to the act of monitoring your financial situation, as well as taking steps to ensure that you remain financially stable. Simply put, it’s the practice of making sure your finances are under control, and that you can meet your spending and saving goals. Money management is a skill that can be learned, and once mastered, can help you reach your financial goals more efficiently. There are many aspects of money management, and each is important. Some of these aspects include budgeting, tracking your spending, and saving money. And although each of these tasks may seem straightforward, many people struggle with each of them. Budgeting, for example, can be a difficult task for some people. Therefore, it’s important to understand the benefits of effective money management and what strategies you can use to improve your situation. Benefits of Money Management There are many benefits to managing your finances, and some of them are: – You’ll be able to reach your financial goals. If you have long-term financial goals, such as saving for retirement or paying off debt, you’ll need to have a sound money management strategy in place to achieve them. Having a budget, tracking your spending, and saving money consistently will help you meet your goals. You’ll gain control over your finances. When money management is a priority for you, you’ll gain control over your financial situation. And with this control, you can make positive changes that will lead to positive results. Financial stress is a common issue, and many people suffer from it. Money management can help relieve this stress by giving you a plan to follow and goals to work towards. It will prepare you for the unexpected. Many unexpected situations can arise, such as an injury, a car accident, or a health emergency. Having a good money management strategy will help you prepare for these situations by having a savings account to fall back on. Money Management Strategies There are many different money management strategies you can use to improve your finances. Here are six common money management strategies: – Budgeting: A budget is a plan for how you’ll spend your money. Creating a budget can help you achieve your financial goals, and reduce financial stress. There are many different ways to create a budget, such as the 50/30/20 rule. This rule divides your income into three categories: 50% for necessities, 30% for savings, and 20% for discretionary spending. Saving money: There are many different ways to save money, and they are not mutually exclusive. You should be doing all three at once. These include: putting money into a savings account, investing, and minimizing spending. Investing: Investing your money is a great way to increase your savings and prepare for the future. There are many different types of investments, such as stocks, bonds, and real estate. Tracking your spending: Tracking your spending is an important way to save more money. There are many apps and tools you can use to do this. Avoiding debt: Debt, such as student loans and credit card debt, can cause a lot of financial stress. You should avoid this by applying the above money management strategies. Building an emergency fund: An emergency fund is a savings account to help you in times of financial distress. There are different ways to build up your emergency fund, such as increasing your savings and decreasing your spending. Tips for Managing Your Money in 2022 If you want to be successful with your money management in 2022, you’ll need to make sure you are prepared. Here are some important tips: Automate your finances: One way to avoid human error when managing your finances is to automate them. You can do this with your savings, investing, and bill payments. This will allow you to focus your time and energy on other important aspects of life and work. Understand your spending habits: Another important aspect of money management is understanding your spending habits. You can do this by tracking your spending for a few months or keeping a spending journal. Utilize financial tools: There are plenty of financial tools that can help you manage your finances. Some of these include budgeting apps, investing apps, and online financial calculators. Start investing early: Investing your money early can help you reach your financial goals, such as retirement, quicker. There are many types of investments you can make, such as stocks, bonds, and real estate. But make sure you do your research, and talk to a financial advisor before investing your money. [B-02] Conclusion Money management is an important skill to have, especially in a world that is becoming increasingly interconnected. There are many benefits to managing your finances, such as reaching your financial goals, experiencing less financial stress, and preparing yourself for the unexpected. There are many money management strategies you can use to improve your financial situation. And if you want to be successful, you’ll need to make sure you are prepared. With the right strategies, you can manage your money more efficiently and set yourself up for success in 2022. Find out more about money management strategies by visiting the Piramal Finance website. If you want to find out more about loans, Piramal Finance will guide you in the best way possible.

08-11-2023

Know More

How Much Returns Can I Expect From NPS Scheme In 2022?

Every person desires complete financial freedom, even when they retire. Just imagine how good it would be if you never had to rely on anyone else for financial support during your later ages. The NPS scheme can help you fulfil this wish. The NPS or National Pension Scheme allows you to build a solid retirement corpus that will help you maintain your financial freedom after you retire from your work. In this article, we will talk about NPS returns and how it compares with other pension schemes. Let’s dig in. [B-01] Who Should Invest In NPS Scheme? Every Indian citizen can invest in the NPS or National Pension Scheme. If you don’t have the risk appetite to invest in high-risk investment options like stocks or equity mutual funds but still want to build a corpus to have a relaxing retirement life, NPS is the perfect investment scheme for you. It comes with a systematic investment option where you would invest a certain amount of money towards the scheme. Your investment will mature once you turn 60 and retire from your regular job. At that time, you will get a certain portion of the corpus in a lump sum. Meanwhile, the other portion will be invested in annuities to provide you with a monthly pension until a certain age. NPS Returns For Tier 1 And Tier 2 Accounts NPS scheme returns from Tier 1 and Tier 2 are controlled by the Pension Fund Regulatory and Development Authority or PFRDA. These NPS funds are managed by multiple pension fund managers who try their best to get the maximum return on your invested money. The pension fund managers allocate your NPS funds to four separate asset classes. These asset classes are equity, government bonds, corporate bonds, and alternative assets. The fund managers distribute your investment amount to two or more of these asset classes depending on your expected annual return rates. Please note that there is no fixed return rate when it comes to the NPS scheme. The annual return rate depends on the market performance. That’s why the sooner you invest in this pension scheme, the more retirement corpus you can build at the end of the maturity period. NPS Return Rates for Tier 1 Accounts Asset Classes1-year return rate (% per year)5-year return rate (% per year)10-year return rate (% per year)Equity15.33% – 18.81%13.11%-15.72%10.45%-10.86%Corporate Bonds12.46% – 14.47%9.27%-10.15%10.05%-10.64%Government Bonds12.95% – 14.26%10.29%-10.88%9.57%-10.05%Alternative Assets3.98% – 16.73%NANA NPS Return Rates for Tier 2 Accounts Asset Classes1-year return rate (% per year)5-year return rate (% per year)10-year return rate (% per year)Equity15.19%-17.92%13.05%-15.83%10.35%-10.58%Corporate Bonds12.71%-16.36%9.55%-10.17%9.86%-10.60%Government Bonds12.61%-13.42%10.40%-12.00%9.59%-10.07% How To Calculate NPS Returns? The returns on your investment in the National Pension Scheme are linked with the market. So, the NPS returns depend on the platform and your specified risk appetite. However, it does not mean that you can’t estimate your possible NPS returns. Many online platforms offer free NPS calculators. These online tools help you determine your NPS scheme corpus and return within seconds as long as you enter the correct data. Usually, most calculators ask for the following information: The amount of money you want to invest towards the NPS plan every month Your expected return rates per year Your current age Some calculators also ask how much money you would like to re-invest in the annuities. Please note that you must invest at least 40% of your NPS corpus in different annuities to receive a fixed amount of money as a pension every month after you retire. Once you input the information mentioned above into the NPS scheme calculators, they will show you the following: Total investment Interest earned Maturity amount Minimum annuity investment Comparison Between NPS And Other Pension Schemes Below is a table that compares NPS and other pension schemes in India: Pension Plan NameAge Limit in YearsMinimum Investment per Year Tax BenefitsFlexibilityNPS Scheme18 – 60Rs. 10,000You can save up to Rs. 2 lakhs in tax under Section 80CCD(1) and 80CCD(2).The investment will be in lock-in until you become 60 years old. Partial withdrawals are allowed after 10 years of the initial investment.Whole Life Unit-linked Plan18 – 69Single payment starts at Rs. 12,000Up to Rs. 1.5 lakhs under Section 80C.It comes with a lock-in period of 5 years. However, partial withdrawals are allowed.Regular Pension Plans18 – 60Rs. 18,000 – Rs. 24,000Up to Rs. 1.5 lakhs under Section 80C.It comes with a 15-year lock-in period. You can’t make partial withdrawals. However, you can secure loans using the pension plan funds as security.PPF (Public Provident Fund)The minimum age requirement is 18 years old. There is no upper age limit in this investment scheme.Rs. 5,000Up to Rs. 1.5 lakhs under Section 80C.Your money will be in lock-in for the next 15 years. However, partial withdrawals are possible after 5 years of the initial investment. [B-02] Final Words If you want to create a retirement fund that will pay for your retirement expenses, the National Pension Scheme or NPS is a great option. It allows you to slowly build a retirement corpus through small monthly investments. Plus, it gives you greater returns on your investments compared to other pension policies. You can also calculate the NPS returns using a free online NPS calculator. To learn more about the NPS scheme, check out the Piramal Finance website.

08-11-2023

Personal Loan

Reasons to apply for wedding loan

Weddings are the dream events in life and should be cherished for the remainder of life. One should ensure that no expense is spared when it comes to weddings. Whether splurging on exotic destinations or arranging for a 7-star menu, weddings provide an avenue for couples to showcase their status and ensure that the wedding event is discussed for generations. It is common traditional wisdom that loans should not be taken for weddings. But that is a thing of the past. The times are changing, and we should ensure we do not become an impediment to the frolic of youngsters. When the time comes to fulfil the cherished dreams of your daughter, taking a wedding loan becomes inevitable. [B-01] Thanks to the myriad options available, there need not be any budgetary considerations for the dream wedding. Top 6 Reasons to Apply for a Wedding Loan The top six reasons why taking a wedding loan is the best choice in modern life are listed below. 1. Wedding loans are a wonderful option in the absence of savings. Life is full of unexpected events. The expenses across your life may affect your savings and diminish the funds available to conduct a destination wedding. Worry not! Banks and private financial institutions are enhancing their credit portfolios and giving loans for destination weddings even in the absence of collateral. When the wedding day arrives and your bank accounts are unable to meet the demands of your dream wedding, wedding loans will come to your rescue, removing any obstacles and ensuring that the path to the wedding is paved with roses. One pivotal point before applying for a wedding loan is to ensure that you have a correct idea regarding the quantum of the loan. One should do an incisive financial analysis, and only that loan amount should be borrowed for which comfortable, convenient, and stress-free instalments or EMIs can be made. 2. Swift disbursal of wedding loans in a convenient fashion. Imagine applying for a wedding loan and getting through the process in minutes. Too good to be true? However, this is the reality when it comes to satisfying your lifelong quest to participate in and arrange a destination wedding. The approval status of the wedding loan is conveyed to the applicant in a matter of minutes, and the loan amount will be reflected in the bank account in 2 working days. Depending on the borrower’s credit rating and the interpersonal relationship between the applicant and the bank, some banks go the extra step for elite customers and make sure that the total wedding loan amount is disbursed in 24 hours. 3. Forget about credit cards, as wedding loans demolish them in terms of interest rate. Everyone knows how credit cards become agents of financial ruin when large expenses are incurred. Credit card holders may find it attractive to charge their cards for wedding expenses. Say no to this and go for a wedding loan instead. Why? It’s simply a huge money saver in terms of total interest paid. Wedding loans fall under the ambit of personal loans. For this category, the applied interest rate is lower when compared to the gargantuan interest rates charged by credit card companies. Weddings are moments of great joy and hope. Never make the mistake of turning such a joyful occasion into a bad memory by spiralling into unrecoverable debt. 4. Wedding loans entail attractive repayment options. Forget the hassles of timely repayment of wedding loans. Thanks to the guidelines of RBI, banks are mandated to offer easy and flexible repayment options to the borrowers of wedding loans. However, it is entirely up to the borrowers to determine the repayment structure. If the applicant has a comfortable financial position, they can go for a shorter loan tenure. But it is advised to go for a longer loan tenure because of the extra expenses that may be incidental after a few months to a year after the wedding. 5. Forget about prepayment penalties. Weddings are the source of great collections of funds. Wedding gifts in India constitute a great portion of cash as favours are accumulated over the years through give and take. An Indian wedding may result in the collection of huge cash deposits. The same amount can be used to repay the loan in full and avoid the incidence of interest. This is a win-win situation for both the bank and the applicant. The banks enjoy these cash flows as collateral, and the applicant can remove the financial obligation by clearing the loan quickly. As a matter of abundant precaution, the applicants are strongly advised to go through the contract of the wedding loan to ensure that there are no prepayment penalties. 6. Enjoy the fruits of an enhanced credit score. The young couple will need future finances to build their dream home or go on a destination honeymoon. What better way to build their credit score than by promptly making EMI payments and ensuring their credit score is green? The financial aspects of a good credit score are decreased interest rates and enhanced loan terms, all of which can be a boon in disguise for the couple’s stability after the wedding. Therefore, it is advised not to make a single late payment on your wedding loan. [B-02] Final Thoughts Say goodbye to budget limitations or a dearth of funds for your dream wedding. Wedding loans are the best thing that happened on the Indian wedding scene, as we Indians give much importance to this special event. Savings or no savings, a wedding loan can act as your best friend when meeting various expenses. Make sure to follow financial discipline after availing of the loan and make sure the repayments are made promptly. To read more such blogs, visit Piramal Finance and explore their products and services.

08-11-2023

Home Loan

What You Need To Know About Housing Loan Eligibility In India

A housing loan is a loan used by borrowers to purchase a home. They are one of India’s most used lending products. Checking your housing loan eligibility is the first step toward applying for a housing loan. Several factors can affect your eligibility. It includes your income, repayment terms, previous loans, and much more. Getting a home loan will be stressful if you don’t satisfy these terms. The lender might deny your application if you don’t fulfil the housing loan eligibility. Due to this, it is vital to learn what housing loan eligibility is and what factors affect your eligibility. [B-01] What is housing loan eligibility? Housing loan eligibility is like a list of needs which you must fulfil if you want to get a house loan. Lenders use it to determine a borrower’s creditworthiness and see if they can repay the loan. In return, this saves the lender’s time which they might have spent on conducting a background check. They do this to ascertain whether the applicant can repay a loan. The bank uses a certain type of housing loan eligibility calculator to know the amount of loan they lend to a borrower. They will also use your details to check your credit score as well. What are the factors which affect housing loan eligibility? If you are thinking of applying for a housing loan, you should consider the following factors: – Age: When accepting a house loan, lenders consider age a crucial factor. If you are between the ages of 25 and 30, you may acquire a loan for up to 30 years. Someone between the ages of 50 and 55, will only get a housing loan for a maximum of 15-20 years. It also depends on the lender’s regulation and the age criteria. A longer payback period will increase your eligibility and result in lower EMIs. It will also make it simpler for you to repay the loan without defaulting. Net Income: Banks use your current income and monthly outflows to determine your housing loan eligibility. It highlights your capacity to repay a loan. Your net income should be enough each month to cover your EMIs. Credit Score: A key element for approval of your housing loan application is your credit score. Most lenders look for a borrower whose credit score is over 700. If your credit score is above this range, it increases your chances of getting a housing loan, that too, at a cheaper interest rate. Employment type: Lenders also take into account your type of employment. Contract workers are seen as less trustworthy than permanent workers with a history of consistent income. In addition, lenders could grant you a larger loan if you file an ITR regularly. Unlike someone with a shaky firm or no evidence of income. Loan-to-Value Ratio (LTV): The loan-to-value ratio (LTV) is the portion of the property’s value for which the lender will provide financial support. A lender allows you to borrow up to 90%* (according to NHB standards) of the property’s market worth as determined by them. Therefore, you will get a bigger loan and vice versa if your house is worth more. Cash outflows: Lenders always check whether a person can afford to pay the EMI for a loan. They use different factors to determine your monthly cash inflow and outflow, like your monthly income and fixed monthly expenses. Through this, they know whether you have some outstanding cash which will allow you to pay your monthly loan EMI. How to increase your housing loan eligibility? Increase your housing loan eligibility by using the following tips: Improve your credit score: A high credit score usually increases housing loan eligibility. To accomplish that, one must ensure that all loan repayments are done on time. Your credit score is negatively impacted by any delay or default. You may improve your credit score by maintaining a low credit usage ratio (CUR). Choose joint mortgage loans: If you have multiple earners in your family, apply with a co-applicant. With this, you can boost your housing loan eligibility exponentially. The best action is to apply for a mortgage with your partner, parents, or both. There are many other benefits of co-borrowing. It provides you with an increment in the loan amount. With a co-applicant, you don’t have to take full responsibility for a loan. Apart from that, you also get tax advantages. Choose a longer term: One might choose a lengthier housing loan term to boost their eligibility for a house loan. A longer loan term raises the interest you must pay. Timely debt repayment: The debt-to-income ratio plays an important role in housing loan eligibility. You should clear your outstanding debt before applying for a loan. Think before you act: Before you apply for a house loan, you should thoroughly research and give yourself enough time. You should check your budget, earnings, CIBIL, etc. You should also compare loan options and decide between a fixed and floating interest rate. Declare Any Additional Income You May Have: When you disclose your other sources of income, your eligibility for a house loan rises. You should add another source of income since it will help you get a larger loan. [B-02] Conclusion That was all about housing loan eligibility. You should always consider it an important factor before applying for a home loan. So, before you apply for a house loan, be sure to take into account all the housing loan eligibility factors given in this article. Piramal Finance assists you in determining your housing loan eligibility. The company also provides housing loans for self-construction, refurbishment, loans against property, or for purchasing a new home. You can visit their website and read about this in detail to know more about this.

08-11-2023

Personal Loan

Know the Key Points Between an Education Loan And Mortgage Loan

With the growth in the financial market, many banks and NFBCs are offering different types of loans. The type of loan you get depends on your requirements. This article will walk you through two types of loans—an education loan and a mortgage loan—and their differences. An education loan is an unsecured loan borrowed to finance higher education. On the other hand, a mortgage loan is a secured loan offered against collateral and can be used for various purposes like funding your child’s education, renovating your house, etc. Read on to learn how these two loans differ. Education vs Mortgage Loan: Key Differences Here are the 7 key differences between mortgage loans and education loans. 1. Meaning A mortgage loan is a type of secured loan that provides funds in exchange for an immovable asset, such as a house or a piece of real estate. Until you repay the loan, your lender will hold this asset as collateral. It is a contract between you and your lender, in which you consent to the lender’s right to repossess your asset if you fail to repay the loan. An education loan is unsecured, meaning it is often provided without any collateral in exchange. It is a sum of money that is borrowed to fund higher education expenses. Many banks and NFBCs offer education loans to college-going students. 2. Usage You can use a mortgage loan for a range of purposes, like Financing an urgent medical need Paying for the higher education of your children Paying for the wedding of your children Growing your business Renovating a house On the other hand, you can use the sum of an education loan only to pay for your tuition fee and other educational expenses. 3. Loan-to-Value Ratio The amount you get from a loan as compared to the actual worth of property (collateral for a mortgage loan) and course fees (for an education loan) is known as the loan-to-value ratio. Typically, banks and NFBCs offer 60%-70% of the property’s market value in a mortgage loan. In the case of education loans, lenders provide the borrower with the complete sum that pursuing their education might need. The fees may also include tuition fees, accommodation charges, etc. 4. Repayment Schedule In both a mortgage and an education loan, you repay the loan amount in the form of EMIs. The EMI amount is generally decided beforehand. In most cases, banks suggest you the best EMI amount based on your monthly income. But you can even negotiate the EMI amount based on your repayment ability. In a mortgage loan, the repayment schedule begins once the loan amount is transferred to your registered bank account. For instance, if you took a loan at the start or middle of the month, the bank will set a date for the EMI payments in the following month. However, an education loan borrower is a student with no source of income. That is why the repayment is scheduled to begin after the course completion for which the loan was taken. Also, lenders do not ask for repayment right after the course completion; instead, they offer a six-month grace period to find a job. Once you find a job within the grace period, the repayment cycle begins through EMI. If a salaried person opts for an education loan, the repayment schedule is the same as for a mortgage loan. 5. Repayment Tenure The repayment tenure for a mortgage loan can go up to 15 years, as they are offered against collateral. For education loans, the tenure goes up to 8 years, but it varies from lender to lender. 6. Disbursal of Loan Amount For mortgage loans, the lenders disburse the loan amount into the borrower’s registered bank account after the approval of the loan. The borrower is free to use that sum for any purpose. In the case of education loans, the loan amount is not directly handed over to the borrower or transferred to their bank account. Instead, the lenders transfer the loan amount directly to the account of the educational institution from where they will study. 7. Tax Benefit According to Section 24(B) of the Income Tax Act, salaried people can benefit from the income tax deduction for mortgage loans (also known as loans against property). If you use the loan amount to finance a new house or house renovation, you may file for a tax return of up to ₹2 lacs you paid as loan interest. As soon as you begin making repayments for an education loan, you can use Section 80E of the Income Tax Act to claim a deduction in the monthly interest you pay. However, the deduction is not allowed on principal repayments. Benefits of Applying for a Loan at Piramal Finance The following are the benefits of applying for a loan at Piramal Finance: There are little to no charges for foreclosure and early payments Minimal documentation Smooth process with quick approvals and disbursals Affordable monthly EMIs Flexible repayment terms, with the tenure ranging from one to five years Combined incomes for maximised loan eligibility Accessible to both salaried and self-employed individuals [B-02] Conclusion Both mortgage loans and education loans serve different purposes. Get an education loan if you wish to pay for your education in India or abroad. It is simple to obtain and does not need collateral. However, go for a mortgage loan to fund an urgent medical bill, pay for your wedding, expand your business, or renovate your home. To acquire a loan from Piramal Finance, apply here or call 1800 266 644. With Piramal Finance, you can be sure of personalized customer service and customized loan plans. 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08-11-2023

Know More

How Does a Mortgage Bond Make Money?

An investor gets principal and interest in a single monthly payment when a borrower pays back a loan using specific real estate assets as security. In the event of a default by the borrower, the asset may be auctioned off to repay bondholders. [B-01] To what end do mortgage bonds serve? Lenders retain title to mortgages until the loan is paid in full. This happens when a person buys a home using a mortgage. Financial institutions and mortgage companies are two examples of potential lenders for such property loans. The mortgages are pooled by the banks. The bundles are then sold to investment firms or government entities at a discounted rate. By shifting the risk of loan default to investment banks, lending institutions get access to the funds they would have earned throughout the life of the loan upfront. Bonds for mortgage-backed loans are often issued by an investment bank after a bundle of loans is sold to an SPV (special purpose company). Bondholders in mortgage loans get regular interest and principal payments each month. Mortgage bondholders get a monthly distribution of funds generated by the mortgage pooling process. An investment bank keeps some of the interest on a loan and gives the rest, along with the principal, to bondholders. Mortgages are securitized when their cash flows are transferred to bondholders. Types There are a variety of mortgage-backed securities (MBS), including securities with a passthrough to mortgage When interest or principal is paid on these MBS bonds, the proceeds are divided among bondholders according to their respective ownership percentages. If ten people invested $1,000 apiece and 1,000 bonds were created, each person would get $1,000. Each investor would get a dividend proportional to their portfolio holdings. Any prepayments will be shared equally among bondholders. Payments on mortgage bonds would never exceed a bondholder’s proportionate share of bond proceeds. In the case of default, the loss would be distributed to investors according to their bond holdings (if the asset value drops below the face value of the bonds). Therefore, bondholders and MPS investors face similar prepayment and extension risks. Many financiers fret about the risks of prepayment and default. CMBS helps reduce these problems. They do this by segmenting mortgage cash flows into many classes or tranches. Each of these is exposed to a different set of risks. Under the CMBS structure, the retirement of each bond type would occur in a predetermined order. Each portion of the money has its own set of rules for how it may be used. In addition to the monthly interest payments, each tranche (a portion of money) also receives payments toward the principal and any prepayment amounts. This method of dividing up prepayment risk among tranches is common in the financial industry. The risk of prepayment is greatest for Tranche 1, whereas the lesser tranches act as shock absorbers in the event of borrower default. Tranche 4 gets prepayment only after the previous three tranches have been paid in full. So it can afford losses in the event of a default. It faces the highest default risk and the lowest prepayment risk in the aforementioned scenario. Example Let’s say ten people took out $100,000 in loans from ABC Bank, using the property as collateral, at a rate of 6% apiece, for a total of $1,000,000. The bank would sell XYZ a pool of mortgage amounts, and XYZ would issue bonds for $1,000,000 (one thousand bonds of $1,000 each) using this pool of mortgages as collateral at a rate of 5%. From there, XYZ would make new loans out of the collected funds. ABC Bank would send XYZ $5,000 in interest and the first month’s payment component, less any applicable margin or fee. For the first month, XYZ will get $4,500 plus the repayment amount if the fee retained is 0.6% (0.05% each month). In addition, XYZ would continue to pay mortgage bondholders the remaining interest on the $4000+ repayment amount for the first month at a spread of 0.6% (0.05% monthly). To implement this strategy, the investment bank may acquire mortgages from other banks using bond sale revenues. And the other banks can make loans with the proceeds of mortgage sales. If the homeowners default on their mortgage, the loan might be sold at auction to compensate the lenders. Home loan vs. financial responsibilities In contrast to a debenture, a mortgage bond is not backed by any collateral. It is backed by the full faith and credit of the issuing business alone. In contrast, in the case of borrower default, the mortgage bond is backed by real estate. This real estate may be liquidated to repay the bond. MBS have a lower interest rate than debenture bonds. This is because they are a lower-risk investment. There are also variations in payment schedules and procedures. Mortgage bonds are debt instruments that pay interest and principal every month. However, the principle on debenture bonds is not paid until the bond matures. The interest is paid semiannually or annually. Advantages Mortgage-backed securities have a higher rate of return than Treasury bonds. Mortgage-backed debentures provide higher risk-adjusted returns than other types of debenture bonds. This is because of the security provided by the underlying mortgages. They contribute to a diversified portfolio because of the low degree of correlation between them and other investment options. It provides regular and reliable income, especially in comparison to other fixed-income products. Interest on corporate bonds is paid annually or semiannually, whereas MBS payments are made monthly. Mortgage-backed securities are preferable to debenture bonds in the case of insolvency since the collateral may be liquidated to repay bondholders. Unlike traditional bonds, MBS do not have tail risk because their monthly payments include both interest and principal, the latter of which is amortised over the life of the bond. The risk to bondholders is elevated because of the single, large payment of principal at maturity seen in certain other bonds. Disadvantages Mortgage-backed securities have a lower yield than debenture bonds. Mortgage-backed securities, formerly seen as safe investments, were blamed for contributing to the subprime mortgage crisis of 2008. As a consequence of higher profits, some banks became complacent and extended credit to people who weren’t good risks. Several large investment banks, notably the Lehman brothers, had significant investor losses as a result of the subprime mortgage default crisis. Loans are secured by assets. So these bonds are essentially equivalent to the asset. If the market interest rate drops, these bondholders might be pre-paid. To make matters worse, they’ll have to invest the money they get at a lesser rate. This reduces their overall return. [B-02] Conclusion Mortgage bonds are a diversified investment option that outperform Treasury bonds and debenture bonds. They carry much less risk. To keep mortgage rates low and the market functioning, these financial institutions also provide loans to investment banks. Visit Piramal Finance to learn more.

08-11-2023

GST

Everything You Need to Know About GST Registration in India

You have heard of the Goods and Services Tax. You may have heard it even if you are a small businessman, a service provider, or a customer (GST). On July 1, 2017, the GST became active in India. It completely overhauled the country’s tax system. A GST tax is a single tax levied on the surplus value an organization creates in the marketplace. The government of India taxes businesses on their specific product or service. They tax businesses at each step of the production and distribution process. And, the cost falls on the end user. When it’s time to pay your GST, the first step is to register your business under GST. Suppose you’re the founder of a new business. In that case, you could feel completely overwhelmed by it all. Here’s all you need to know about GST registration [B-01] Who Should Register for GST? Any business with more than Rs. 40 lakh annual revenue must register as a regular taxable person. But, a firm in Jammu and Kashmir, Himachal Pradesh, or Uttarakhand must meet a lower barrier of Rs. 10 lakh. For service providers, the annual revenue must be Rs. 20 lakh. But, in special category states, it is Rs.10 lakh. Here is a list of businesses that must register for GST regardless of their annual revenue: Casual taxable person / Input Service Distributor (ISD) Non-resident taxable person Inter-state supplier of goods and services Supplier of goods through an e-commerce portal Any service provider Liable to pay tax under the reverse charge mechanism TDS/TCS deductor Online data access or retrieval service provider What Documents Do You Need for GST Registration? To register your business for GST, you will need the following items. PAN Card Aadhar Card Business registration documents ID proof and address proof Cancelled cheque or bank statement Proof of authority Digital signature Types of GST Registration in India Listed below are the various GST registrations available in India: Normal taxpayer A normal taxpayer is anyone with a yearly revenue of over Rs. 40 lakhs. But, his annual revenue must be less than Rs. 75 lakhs. GST registration is optional for the service and manufacturing sectors. Composition scheme To qualify for GST registration under this plan, a taxpayer’s yearly revenue must be less than Rs. 1.5 crores. Small taxpayers can use this arrangement to pay a flat tax rate. And, to also avoid the hassle of GST paperwork. Casual taxable person Consider a person who does not have a permanent place of business. But, he makes supplies in a region where GST is payable. In that case, he is a casual taxable person under GST. Non-resident taxable person These people are those who are present outside India. But, they supply products or services to whom GST applies. Non-resident online service distributor Suppose you’re an individual providing services internationally. And, you haven’t already registered for GST. In that case, you’ll need to do so. UN Body/Embassy/other notified individuals The UN agencies and embassies each have a unique identification number. The Ministry of Foreign Affairs provided this number. This number helps them accept deliveries from registered individuals. Such groups may access GST’s online application system. Special Economic Zone unit or developer Submit the required certificate and documentation. And, SEZ developers and units can begin the GST registration process. TDS/TCS Candidates who deduct tax on supplier payments totalling more than Rs. 2.5 lakhs per year are required to register for GST. People can bypass the intermediary and submit their registration forms online. How Much Does GST Registration Cost? Note that there is no cost to register for GST for taxpayers. As a result, there is no charge associated with GST registration. But, the government will impose a GST penalty for late or insufficient tax payments. Unless the total amount is more than Rs. 10,000, the penalty imposed by GST is 10% of the tax amount. If you avoid taxes on purpose, the government will hit the offender with a fine equal to the amount owed. What Are the Benefits of GST Registration? Listed below are some of the many benefits of registering for GST: Simplifies Taxation Services: GST in India is a comprehensive tax. It has helped to unify the country’s economic system. Reduction In Costs Of Products & Services: The implementation of GST has reduced prices for consumers. It has done so by eliminating the domino effect of many taxes. Helps In Avoiding Lengthy Taxation Services: GST registration has eliminated the lengthy tax processes. Also, these don’t have to pay taxes: Service providers with annual revenue less than 20 lakhs Product providers with annual revenue less than 40 lakhs Aimed At Reducing Corruption And Sales Without Receipts: GST focuses on ending shady dealings and cash transactions. Indirect tax compliance is simplified, which is especially helpful for smaller businesses. Uniformity In Taxation Process: GST registration ensures a standardized and centrally registered tax system. Because of this, you can now file quarterly tax returns digitally. Minimizing Tax Evasion: With GST in place, tax avoidance is significantly reduced. Higher Threshold For Registration: Before GST, companies with more than Rs 5 lakh in revenue had to pay taxes. The tax was also waived for businesses with annual revenue of less than Rs 10 lakh. But, this ceiling has been raised to Rs 20 lakh under GST. This regime allows many small businesses to avoid paying the tax. Composition Scheme For Small Businesses: The composition scheme is a great benefit. It helps small businesses make between Rs 20 and Rs 75 lakh annually. It helps them take advantage of GST’s tax savings. For many small enterprises, this change has reduced taxes and costs. Simple And Easy Online Procedure: The GST system is completely digital. Hence, this feature makes every step of the procedure quick and easy. Particularly new businesses have benefited from this. That’s because they no longer need to register their business painfully. Earlier, they did so by running from agency to agency. [B-02] Conclusion GST registration has several benefits. And, if you meet the requirements, you should register for GST immediately. You must have your firm registered and should avail the many benefits of GST. That’s because, with GST, several businesses have grown. This was a complete guide on things to know about GST registration in India. We hope you found this article useful. 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08-11-2023