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Most Important Features Of Public Provident Fund

One of India’s most common ways to put money aside is through the Public Provident Fund, also known as a PPF. Tax benefits on the amount invested, guaranteed returns, and tax-free returns are just a few of the reasons PPF is so popular. Although many Indians use PPF investments to save on taxes in the long run, there are still some misconceptions about the scheme. This article will cover the most important aspects of the Public Provident Fund. [B-01] Potentially Favorable Tax Treatment for a PPF Investment Exempt, Exempt, Exempt (EEE) treatment is available for PPF accounts: First Exemption: One of the main benefits of PPF is that the investment’s principal amount is not taxed. Section 80C of the Income Tax Act says you can get a tax exemption if you put money into a PPF. Second Exemption: Tax-free interest accrued on a PPF account is the second exemption. Third Exemption: Funds received at PPF account maturity qualify for the exemption. When your PPF account matures, you can withdraw the funds without being subject to either the capital gains tax or the wealth tax. However, as of 2020, tax deducted at source (TDS) may apply to PPF withdrawals. Withdrawals from small savings schemes like PPF exceeding Rs. 20 lakh are subject to tax withholding rates of 2% and 5% under the new law. The PPF subscriber will only be subject to this TDS if they have not filed an income tax return in the preceding three years. How long does a PPF account last? Everyone knows that your PPF money must be spent within 15 years. What’s less well-known, though, is that this maturity time is not counted backward from the day the account was opened. An individual’s PPF account will mature 15 years after the close of the fiscal year in which the initial contribution was made. Therefore, you will need to make 16 annual contributions to your PPF account instead of 15 to see it through to maturity. PPF Account Extension After Maturity After 15 years, the PPF account is considered mature, and the owner can withdraw the funds or make one of two investments. Your first choice is to cash out the account’s funds and close them. The second choice is to let the account mature with or without further deposits. Under the current laws, a mature PPF account can be extended for an additional five years without limit. A PPF account can be extended for up to one year after its maturity date, but only if the request is made during that year. Minimum and Maximum Contribution to the PPF To comply with the current PPF regulations, a minimum annual deposit of Rs. 500 is required. Currently, the limit for PPF contributions per year is Rs. 1.5 lakh. Though this maximum yearly contribution of Rs. 1.5 lakh is subject to periodic adjustment. Public Provident Fund deposits over Rs. 1.5 lakh per year is considered irregular and will be returned to the subscriber without interest. Withdrawal of Part of the PPF Account Balance Subscribers can start making partial withdrawals from their PPF account after five fiscal years have passed. However, this time frame of 5 years is measured from the end of the fiscal year in which the initial payment was made. After the beginning of the 7th year of the PPF account, measured from the date of account opening, a partial withdrawal of the PPF balance is permitted. PPF withdrawals are subject to eligibility requirements, such as: There is a yearly limit of one withdrawal. Subscribers cannot take out loans against their PPF balances once they have withdrawn their funds. If you have a PPF account, you can take out no more than half of your account balance from the previous fiscal year. Loan Against PPF Subscribers can ask for a loan against their PPF between their account’s third and sixth years. Borrowers can currently borrow up to 25% of their PPF account’s closing balance from the previous year for the financial year in which the loan application is made. Let’s say that in August 2021, a PPF subscriber seeks a loan secured by their PPF. A maximum loan amount of 25% of the PPF account balance as of March 31, 2021, would be available in this scenario. Loans secured by PPF carry an interest rate of 1% over the current PPF rate. Therefore, a loan taken out against a PPF account will incur an interest rate of 8.1% p.a., based on the current PPF interest rate of 7.1% p.a. Attaching the PPF account to repay debts Court orders or decrees cannot be used to seize a PPF account or its balance to satisfy the subscriber’s debts or liabilities. Debtors may be denied access to their PPF account; however, the Internal Revenue Service is not subject to this restriction. If the IT Department issues a subscriber with a tax-related order, the subscriber authorises the IT Department to use the PPF account balance to satisfy the demand. Additional PPF Account There can only be one PPF account under an individual’s name. Subscribers who open multiple PPF accounts will have the second account treated as an irregular account and will not get the tax benefits or interest earnings associated with PPF accounts. Currently, subscribers can open PPF accounts at any participating bank or any participating post office. It’s also possible to open a PPF account at many banks via their websites. The requirements for opening an online PPF account with a bank include: Keeping money in a bank savings account A valid username and password for an online banking service Indicative of Authenticity and Relationship (Aadhaar) One-Time Password (OTP) from Aadhaar sent to a mobile number tied to Aadhaar [B-02] Wrap Up Overall, PPF is an intelligent way to save, especially if you want to put aside money for the future. In the long run, it can be used for many different things, from starting your own business to paying for your children’s education. To read more such articles, visit the Piramal Finance website.
08-11-2023
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Investment

How investing in SIPs helps you create wealth?

For a long time, the Systematic Investment Plan (SIP) has been a popular option for investors. Many claims have been made about the plan’s effectiveness and benefits. But the importance of SIP investment in wealth creation is frequently overlooked. [B-01] What is SIP Investment? The fact that interest grows benefits SIP. One of the many benefits of SIP is that it allows for this. People can use SIP plans to take advantage of the compounding effect. This gradually accumulates into a large nest egg. When people use SIP plans, their profits are re-invested. They earn interest on interest, allowing their money to grow more quickly. Compound interest is one way that SIP investment can assist a low-budget investor in accumulating wealth. Benefits of SIP Investment If you wish to amass a lot of wealth, consider the following arguments in favour of establishing a systematic investment plan (SIP) using mutual funds: Putting Your Money to Work via SIP Investment If you want to become wealthy, you need to save money consistently. You can make consistent investments if you invest in SIP. You can instruct your bank to invest a certain amount of money into SIP mutual funds every month by setting up an electronic funds transfer, also known as an ECS, on your bank accounts. Although automating your investments is easy and uncomplicated, most of us are so busy that we are likely to miss out on the opportunity. Makes One Disciplined When it Comes to Money SIP investment demands that you invest consistently, which is the factor that, over time, will determine your level of success. To maximise its potential, you must maintain a certain amount of money in your SIP plans each month. The systematic investment plan (SIP) approach teaches you how to manage your finances in this manner. Minimal SIP Investment It would help if you started investing when you were young and maintained that investment frequency. You can start investing with as little as Rs 500 per month using systematic investment plans (SIPs). If you start with a tiny amount each month, you may develop wealth even if this is your first time investing. All it takes is a consistent effort over time. Your contribution should increase at the same rate as your income does. Rupee vs. Dollar The stock market has always been subject to uncertain behavior. However, if you invest in mutual funds via SIP plans, you can avoid the dangers associated with the market’s volatility. Mutual fund investors may reduce their overall average cost per unit by investing a certain amount each month. Taking advantage of market downturns to purchase more units and capitalising on market recoveries to reduce the number of units they sell results, in most cases, in lowering volatility, which results in increased returns. You don’t have to worry about timing the market, either. Compounding Due to the power of “compounding,” investing in a SIP may help you amass more wealth over time. If you are patient and make a little initial commitment, you might see a significant increase in your wealth. Putting away a small sum of money every month may assist you in amassing a sizeable savings cushion and provide you with financial stability in the long run. What Different SIP Plans Mean Let us understand the different types of SIP plans: The most fundamental SIP investment is the regular SIP, in which you invest a certain amount of money in the selected plan at regular intervals over a set period. Putting a stop to your SIP: This SIP, also known as a “step-up SIP,” allows you to gradually increase your contribution over time. Since a perpetual SIP has no expiration date, its duration is never fixed. As a result, it is a SIP with an unknown termination date. A multi-SIP enables you to invest in multiple schemes from the same fund company with a single instrument. How to Create a SIP Account? Here are the steps for creating your SIP account: The first and foremost step in starting a SIP investment is to fulfil all “Know Your Customer” (KYC) requirements with your fund house or broker. As a priority, a person should choose a SIP programme and enrol in it with a fund house. You may accomplish this by speaking with a mutual fund distributor or adviser, or by visiting the fund house’s website and learning more about their programs. Your next step should be to choose the SIP plans that best match your requirements. SIP Tenure (weekly, monthly, quarterly, semi-annually, etc.) (every week, month, quarter, half-year, etc.) Online SIP Investment Calculator SIP calculators are online tools that may help you estimate how much your SIP investments in mutual funds will earn. One of the most prevalent methods for younger investors to put their money to work is via a structured investment plan (SIP) in mutual funds. The application assists those who wish to invest. It does so by estimating how much money they may earn by investing in a mutual fund. However, the actual returns would change depending on various circumstances. Please bear in mind that an online SIP investment calculator would not consider the spending ratio or the cost of exiting the plan. What is the Purpose Of the SIP Investment Calculator? A SIP investment calculator is simple to use and saves time. You enter factors, such as: The amount you want to invest. the length of time you want to invest for. The frequency with which you want to invest. The expected rate of return. The compound interest formula calculates the maturity amount depending on the value you provide. This will give you a decent sense of how much you need to spend to receive the money you need. [B-02] The Bottom Line If you want to grow your wealth, a SIP investment may help you get rich. Even if you are a conservative investor, you may start SIPs in mutual funds. You won’t have to guess when to purchase or sell. To learn more about SIP plans and investments, visit Piramal Finance and read blogs on related topics.
08-11-2023
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Investment

<strong>Important Things You Should Know About Stock Market Before Investing in It</strong>

Investing in the stock market is one way to protect your wealth against inflation while still earning a reasonable return. It’s not a terrible plan to replicate this effort on your own. A stock market is a powerful tool. When utilised correctly, it can help you make a lot of money. However, it can also cause you to lose all of your money if you don’t know the market’s ins and outs. Here are a few things you need to know about the stock market before you invest in it. [B-01] Don’t Invest Haphazardly When you invest in the stock market, it is important to have a basic understanding of how it works. You should also make sure that you are investing for the right reasons and with a clear goal in mind. Many investors tend to lose money because they don’t understand the risks associated with the market. They don’t have clear goals. So, don’t invest randomly. It’s not a surefire way to get rich. The stock market has become an integral part of the global economy. It has also become a popular investment option for many people. However. you should keep in mind that investing in stocks will not just bring profits but sometimes losses as well. There are both risks and rewards in the stock market. So, invest while keeping in mind the amount of loss you can bear. Always study the fundamentals. You must first study the market and stocks before making any investment. It is critical to understand how individual stocks fit into a larger system. You must understand what influences them, how they interact, and how they might be used as economic indicators. Understand the financial measurements and terms such as PE, ROE, EPS, and market cap. You should also teach yourself about trading fundamentals, regulations, compliance, etc. Know what market order types are and understand the meaning of the related terms. Educate yourself on the stock market before investing. Don’t invest all of your savings at once. One way to safeguard your financial future is to invest only the money that you can afford to lose. Putting money in the stock market is a high-stakes gamble, and you can end up with nothing. However, you can reduce your exposure to risk by diversifying your holdings. Conduct extensive research and find out what kind of investments would be best for you, considering your age, current financial situation, retirement objective, and other personal circumstances. Borrowed funds should never be invested. Sometimes getting a loan to invest in the stock market seems like a good idea. But it’s not. Investing borrowed money is called “leveraging.” You can purchase stocks with borrowed funds through a margin account at a bank or brokerage. So, what happens if the market or your stock drops in value? You will lose not just your principal investment but also any interest accrued on the broker’s loan. Leverage can help your portfolio, but only if it’s used appropriately. Don’t be a sheep. Don’t let your friends, neighbours, or family members influence your investment decisions. Always thoroughly research the market and the companies included in it. If everyone else is buying a certain stock, chances are good that you will be too. However, this strategy will inevitably fail if the stock is not chosen with caution. Diversify your holdings, but not too much. Know that you don’t have to put all your stock money in one basket. By investing in the stocks of various companies, you can reduce your risk of loss and protect your wealth. It is also vital to avoid over-diversification, as it could hinder the proper growth of your investment. Stick to your investment plan. When it comes to investing, there are two main things you should keep in mind. First, there’s no way to consistently time the market. No one knows when a stock will reach the top or hit the bottom. Not even the experts can predict this. As soon as you start trying to time the market, you’re setting yourself up for failure and losing money instead of gaining it. Second, if you want to be successful with your investments over time, make sure your investment strategy is long-term and disciplined. This means that instead of trying to make a quick buck by buying high and selling low, you’re going to invest small amounts of money over time. It will average out the market’s ups and downs and hopefully show you some good returns on your portfolio. Don’t make your financial decisions from the heart. You can gain money rapidly through investing in the stock market, but this strategy is not without its risks. You shouldn’t just buy any stock that seems attractive without a strategy. You should know what you’re purchasing, how much risk it involves, and why you’re buying it. Many investors’ financial losses in the stock market can be traced back to their inability to maintain emotional distance from their investments. Stop living in perpetual fear or greed. Do not invest in a speculative stock just because of its past spectacular return unless you are prepared to bear the high risk of losing your money. Try not to sell your stocks at rock-bottom prices in a bear market out of fear. Therefore, it’s important to avoid investing with an attitude of fear or greed. Expect neither more nor less. While expecting the most from your resources is never wrong, doing so based on erroneous assumptions can lead to financial disaster. Many stocks, for instance, increased by more than 100% during the recent bull market. However, this doesn’t mean you can count on making the same amount of money in the stock market every time. If you feel like the stocks you now own are overvalued, it may be time to make a change. When investing, it’s crucial to keep in mind that minimising loss is of paramount importance. [B-02] The stock market is a tricky investment option. To know more about it and how to keep your investments safe, check out articles on the Piramal Finance website.
08-11-2023
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Important Reasons to Know Why Businesses Need Financing

All companies, regardless of size, rely on financial resources. A corporation, however, may face financial constraints and a financing deficit. Obtaining money for the business might be beneficial in this case. There are a few ways in which money may help companies succeed. Expanding the company’s working capital, buying new equipment, restocking inventory, expanding the workforce, or consolidating debts via a business loan and business financing are all possibilities. [B-01] Importance of Finance in Business It is no secret that all businesses need funding to function. You’ll need cash whether you’re managing a service- or product-based firm if you want to turn a profit. You may decide to self-fund your firm, or you may need to use other financial sources, such as grants, loans, and credit, to finance it. There is no doubt that financing is essential to a company’s success, regardless of how you decide to fund your enterprise. Continue reading to find out all you need about business loans and financing. What is business finance? The money that a firm has access to is known as business financing. Finance will be at the centre of every business activity, whether you are launching a new company, growing an existing one, or creating new goods. Additionally, modifications outside of your company may need funding. Even the basic operations of a company, such as paying employees and marketing, need a steady flow of funding. This funding will often come from sales, but if you’re starting or have problems, you may need to look into financing sources to keep your company afloat. Financing Your Business You can research business financing alternatives if your company needs more funding. Debt and equity are the two basic ways to finance a firm. To incur debt, one must borrow money from another organisation. This can be via a business loan or mortgage. The borrowed funds are then repaid over time, along with accrued interest. As an alternative, you may use stock to fund your company. This entails offering investors shares of your company. Reasons why you need Business Financing Increased financial backing for factory expansion Lack of capital might spell doom for a growing company’s expansion. Companies decide to employ external business loans to integrate new technologies. And update infrastructure with state-of-the-art machinery and other machinery. Productivity and efficiency are both boosted. This helps move forward with expansion plans. New product development and exploitation Entrepreneurs are looking for new opportunities to grow their businesses. Both strategy diversification and technology upgrading may be powerful growth tools. Investment money allows for creating, evaluating, and launching brand-new products. Cash flow management system It may be difficult for a business to handle high cash flow levels. To have excess money and not put it to good, practical use is a greater waste of resources. A business that has amassed enough funds should use those funds. To branch out into other markets As companies grow and expand, they may shift their focus to a different demographic of customers or enter a more niche industry. To discover uncharted territories, it’s necessary to do extensive research. There will be a considerable cost associated with all this. Acquiring or taking over A company may consider absorbing another company as part of its growth strategy. It may also plan to merge with another one that shares its values and objectives. Mergers and acquisitions both have lucrative potential. They also need substantial capital. Keep your long-term goals in mind at all times Setting long-term goals for one’s life or business is essential. After they’ve been established, they must be carried out promptly and efficiently. To meet a business’s or other organisation’s financial goals within a certain period, it is necessary to engage in financial planning. Long-term business loan for a company is important. They pave the way for the smooth handling of any future financial crises. In the financial sector investing in good options may yield high returns over time. This allows the business to achieve financial stability. So having early goals that are well thought out is always a good idea. To defray operational expenses. To keep the ship afloat and ensure everything is running well, businesses need sufficient capital. Sometimes they need extra money to take care of unexpected expenses. Typical examples include the cost of raw materials, wages, rent, interest, utilities, overhead, and stocking shelves. Educating and growing Research and development, or R&D, is the practice of developing and implementing novel technologies, designing and developing new products and enhancing current ones. To maintain their competitive edge, businesses often use this tactic to explore novel opportunities. Many businesses, especially smaller ones, do not have the capital to bear the expense. They want to borrow money so they can use their research and development efforts. Managing business finance Companies need capital to function. They need to make substantial monthly expenditures to keep the business running smoothly and efficiently. Careful management is required to ensure the funds are invested or spent sensibly. Money may be the lifeblood of every business, but it’s important to remember that good financial management is just as vital. A company can only grow if its business financing is managed well enough to generate a profit. This fuels expansion efforts. Daily cash flow and continuing business operations make it essential to keep close tabs on and manage business loans. As a result, it is crucial in the decision-making process across the board. Financial options like the acquisition of new businesses fall under this category. In addition, a company has to know when cash is tight so it may effectively curb unnecessary spending. With the help of business financing management, a business may choose how much money to spend, on what, and when. [B-02] Conclusion Realistically, most businesses will need some corporate funding at some point. Whatever the case may be, it is essential to give serious thought to all of your potential monetary options. The P2P lending community is a great way to weather a financial storm. It’s convenient, but it also gives businesses more options for a business loan at lower rates and with less red tape. To learn more about business financing, consult an expert at Piramal Housing. They will gladly assist you.
08-11-2023
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Electronics

No Cost EMI Offers on Mobiles, TVs, Laptops, Furniture, Clothing &amp; More

Is it something you’d like to buy at absolutely no cost? Want to know the steps to getting no-cost EMI? Are you curious about the procedure for a loan with no origination, no-cost EMIs? Don’t worry, though; all your questions concerning EMI at no cost will be answered here. [B-01] What is a no-cost EMI? EMI means you can pay for a product or service with manageable monthly instalments and no interest if you take advantage of an option called no-cost EMI. The full purchase price is all you owe, with no further interest added. How does the No-Cost EMI Scheme Work? The vendor may impose a processing fee of 0.5% to 3% in addition to an interest rate of 8% to 15% in the case of regular EMIs. If a customer buys an item with a total price of Rs. 12,000 and chooses the normal EMI payment plan over 6 months, their payments will look like this: Time = 6 Months Money put up front = Rs. 12,000 Interest Rate = 12% Processing fee = 2% This means the monthly charge to the buyer is Rs. 2,157. They’ll have to pay Rs. 441 in interest and Rs. 250 in processing costs. Thus, the buyer’s final price will be Rs. 12,691. In the case of interest-free and fee-free EMIs, the buyer will not have to pay any money toward the cost of the product. If a customer purchases an item costing Rs. 12,000 over 6 months using EMI, then the monthly instalment amount will be Rs. 2,000. No interest or processing fee will be added to your initial payment. That brings the final price tag to Rs. 12,000. No-Cost EMI Benefits Allows one to affordably upgrade their standard of living by purchasing high-priced items in increments. Previously, zero-interest EMI was only available for large-ticket items like smartphones, washing machines, and laptops. This has now been expanded to include smaller purchases like furniture, cosmetics, travel, etc. No-Cost EMI Disadvantages The EMI credit with low cost is quite similar to the EMI credit with no cost. The final cost to the customer may be far more than if they had paid with cash. If the EMI is free, the consumer may use the money to buy things at random, which can be expensive. If the EMI isn’t paid on time, it could hurt the borrower’s credit. Online Stores that Offer a No-cost EMI Option If you’re looking to make a large purchase online and take advantage of the no-interest EMI plans offered by retailers like Flipkart and Amazon India, you can do so with complete peace of mind. To prevent their consumers from having to dig too far into their savings for the sake of completing a purchase, these two online retailers provide the no-cost EMI option. 1. Flipkart The online retailer, Flipkart, has partnered with 13 financial institutions to provide this financing option for their consumers. However, this choice is limited to a specific set of items. Flipkart does not tack on any sort of processing or interest cost to the price of the merchandise. If a person decides to buy a refrigerator for Rs. 18,000 and pay for it over 9 months, the monthly payment will be Rs. 2,000. There won’t be any hidden fees associated with this deal. 2. Amazon American online retailer Amazon’s Indian arm has partnered with eleven financial institutions to offer interest-free instalment payments. These institutions include Standard Chartered, Axis Bank, HDFC Bank, Yes Bank, HSBC, Citibank, Kotak Mahindra Bank, SBI, RBL, and the EMI cards of NBFCs (non-banking financial companies). If an item is eligible for no-cost EMI on Amazon. in, the buyer will not incur any additional fees during the checkout process. For instance, if they want to buy a TV for Rs. 21,000 and pay for it in nine equal monthly instalments, the total they will pay over the year will be Rs. 33,000. As a result, they’ll have to repay Rs. 21,000, the full amount they borrowed. The maximum EMI period that Amazon. will accept 12 months. The process to Avail No-Cost EMI While Shopping Online The following are the steps a shopper must take while purchasing electronics and home appliances from online retailers like Flipkart and Amazon.in : Choose the item you wish to purchase. They must determine if zero-interest EMI/no-cost EMI plans are available for the product in question. The buyer should investigate all payment plan choices if the goods are eligible for EMI. On the payment page, users must choose the EMI that they believe is appropriate for their budget. The customer must then provide their credit card information, which includes the card number, cardholder name, expiration date, and security code. Their entire principal amount will be held after they move forward with the checkout. A detailed explanation of the transaction will be sent to their designated email address. The process to Avail No-Cost EMI while Shopping Offline When purchasing high-priced items like furniture, appliances, and electronics from a physical store, the shopper must take the following precautions: Once a customer has decided on a product, they can choose an EMI plan that works best for them. At most stores, one can choose from 3, 6, 9, or 12 months of EMI. The next step is for them to fill out a form with their information (name, phone number, address, EMI option chosen, and signature). Along with the form, they must also include a copy of one form of identification and one form of residency verification. Once all the paperwork is finalised, they can take the product with them. [B-02] Conclusion The purpose of this article is to give a comprehensive examination of no-cost EMI. If you want to buy something pricey but don’t have the cash on hand to pay for it all at once, a no-cost EMI loan might be a good option.
08-11-2023
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Tractor &amp; Farm Equipment Finance Online

Nowadays, tractors and farming equipment units are quite expensive. When farmers need more than one equipment unit, it becomes challenging because of higher prices. If you compare the prices of various tractors used in agricultural farms, you will notice that the most advanced and latest models cost far more than expected. However, many farmers still choose traditional tractors, as they are more efficient and productive in agricultural farms producing high-yielding crops. Therefore, farmers opt for advanced and more effective practices, even when paying more than expected. [B-01] The same happens when they want to purchase specialised equipment units, such as an automatic harvester, fruit, flower picking machine, etc. These are pricey because they are built on cutting-edge technologies. The companies that make the equipment typically have to import the components from other nations, forcing them to increase the price to such a high level. So, if a farmer wants to buy a tractor or any different agricultural equipment, they will be entitled to take a loan. What is a tractor and farm equipment loan? As the name suggests, a tractor and farm equipment loan is a loan you can take as a farmer or agricultural representative. You must ensure you can buy the tractor or other farm equipment for production and harvesting. The loan amount is granted when you show the creditor the lack of funds and your ability to repay the loan on time without being charged any late fees. Not all creditors offer finance on tractors and agricultural equipment. As a result, you should know the companies or creditor forms you can approach for taking out a loan and purchasing all the necessary agricultural equipment on time. Besides, you should be aware of the hidden charges on agricultural loans because this fund is relatively new. You should be aware of all the possible terms and conditions to avoid any scam or excessive payment without reason. How to choose the best creditor for a tractor and farm equipment loan? As we discussed, many creditors offer agricultural tractor and equipment loans. However, you should contact a trustworthy creditor who will only charge you in line. Following are some ideas you should consider while looking through the possible creditors for your financial loan on agricultural equipment. Choose an experienced creditor. You must choose a creditor with enough knowledge and experience in agricultural loans. Since a tractor and farm equipment loan is quite a new concept in India, it might be difficult to find a creditor who might have a partial idea about how these loans work. So, look for a firm with experience in dealing with agricultural finances for an extended period. At least 3–4 years of experience is recommended. Choose a creditor with a good market reputation. Always look for a lender with a good reputation in the market. To avoid scams and fraud, this is one of the most essential factors. To make sure you are trusting a genuine creditor, do your research. Suppose you want to collaborate with an online creditor. You can quickly look through the comments and reviews to learn more about the work quality, flexibility and scalability opportunities, and several other parameters. Double-check the interest rates. Always ask the creditor if you may prepay the entire balance. Understand the overall interest rate on the principal amount. You can avoid paying any other extra charges included in the initial contract but were not disclosed to you at the time and were added subsequently without prior notice by asking the creditor about these additional costs. Therefore, learning a little about the extra fees will help you understand the operation of the business and the benefits you will receive. Choose a licensed creditor. Always choose a licensed creditor with a permit issued by the government for giving out loans on agricultural farm equipment and tractors. You can only settle down for any creditor with a permit or license, especially those having an expired license with no sign of renewal from the past years. Note: Sometimes, the creditor can put an insurance cover on your tractor and farming equipment without letting you know. Any insurance cover will lead to a dramatic increase in the total instalment amount, which is why you should ask the person or the agent offering you the loan about any insurance cover present against it. Top Things to Remember While Taking a Tractor and Farm Equipment Loan Since loans for agricultural equipment and tractor loans are uncommon, you might have to look for a genuine person to guide you. To obtain a tractor and farm equipment loan, always choose a lender who deals with various agricultural loans. Always ensure that the lender offers flexible repayment options like extending the loan amount. Also, check if you will be charged to foreclose the loan. Once the loan is settled, you won’t have to pay any further interest or principal monthly. Always discuss if you have to pay any other fees as well. To ensure that, read all the documents carefully. Sometimes the lender charges an extra due to a feature you didn’t have in the design or any product that performs differently than the expectations. [B-02] Conclusion In this article, we have walked you through the five most important ways to choose a creditor for a tractor and farm equipment loan. With the help of the points discussed, you can make a perfect choice and collaborate with a creditor, offering flexibility and scalability in loan repayment attributes. Also, we have ended the article with the four most important factors that will help you to know more about agricultural equipment units and tractor loans. If you still have any further questions, you can easily connect with the experts at Piramal Finance.
08-11-2023
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Things To Know About SIP: What Is SIP And How It Works

What exactly is a SIP Investment? “A drop at a time fills the bucket,” as the expression goes. A SIP investment is based on the same idea. You may invest once a week, once a month, three times a year, or once a year. You will also wind up with a lot of money over time. To see how this works, consider taking out a loan. Most individuals get a loan when they make critical life choices (e.g., purchasing a house or vehicle, paying for a wedding, or taking a vacation). When you take a loan to finance these goods, you’ll be required to make a minimum monthly payment (called an EMI). You also have to repay both the principal and the interest on the loan. [B-01] The fundamental difference between a loan and a SIP is that loan borrowers must pay interest, but SIP investors may get a significant return on their money. What is the purpose of a SIP plan? SIP plans allow you to invest in various mutual funds over time, potentially allowing you to accumulate money more rapidly. In this scenario, making a profit and being wealthy is not the same thing. SIP mutual funds are an excellent option for consumers who wish to build up their savings. This money is then deducted from your account at the time you specify. Assume you have an automatic deduction set up on the 5th of each month to deposit money into a SIP investment. So, on the 5th of every month, this money will be deducted from your bank account and invested in the mutual fund you choose. How SIP Investments Can Be Used to Make Money So, for this example, suppose the NAV of a mutual fund is Rs 20 right now. If you invest Rs 1,000 (about $160) in the mutual fund, you will get 50 shares. The mutual fund’s money will rise at the same pace as its net asset value (NAV). If the NAV of this fund rises to INR 30 the following year, the 50 units you purchased for INR 1,000 will be worth INR 1,500. This is how your money increases over time and provides you with financial security. SIP Types and What They Mean Let’s have a look at some of the various SIPs accessible, such as: Top-up SIP Investment You may put additional money into your SIP at certain intervals with a “Top-Up SIP.” The term refers to the fact that your SIP payments may increase when your income increases. With a top-up SIP, you may accelerate the process of creating a substantial corpus and meeting your financial objectives. The following is an example of a SIP top-off: Rahul is considering creating a SIP to invest a certain amount each month. This would assist him in saving for his retirement. He intends to invest Rs 20,000 monthly into a multi-cap fund for the next 20 years. He aspires to make at least 11% each year. Rahul’s original investment of Rs 48 lakhs would increase to around Rs 1.75 crores with a monthly investment of Rs 20,000 and an annual return of 11%. What if Rahul chooses to increase his SIP contribution by 10% annually? With a Rs 93.60 lakh investment, he could save around Rs 2.82 crore. You might amass a fund worth more than Rs 1 crore by raising your monthly SIP contribution by 10% each year. Flexible SIP Investment With the flexible SIP, you may alter the amount automatically deducted from your account each month to invest in a mutual fund. If you’re having difficulties making ends meet, you may use this option to notify the mutual fund firm that you need to temporarily suspend your SIP payments. You may add more money to your SIP for a short period if you have additional income. Perpetual SIP Investment During the application process, you will be prompted to choose the duration of your SIP. It will continue forever unless you provide an end date for your SIP. To cancel your SIP, notify the mutual fund firm that you no longer want to make payments. If you don’t want to restrict your contributions to a certain period, choose “perpetual SIP” in the SIP application. Trigger your SIP investment You may utilise the trigger SIP if you understand how the stock market fluctuates. You may adjust the date of the initial investment or withdraw funds after the event has occurred. You can use a net asset value (NAV) or an index level to set up a trigger that will go off when a given market circumstance is reached. However, you should only use a trigger SIP if you understand how the stock market works. How Do You Choose Mutual Funds to Invest In? Online, you may learn much about your preferred mutual funds, including how they’ve performed. You are responsible for ensuring that the fund you select meets the requirements outlined below. Taking a risk To invest wisely, select funds whose level of risk corresponds to your willingness to take risks. For example, if you are a cautious investor, it is better to invest in safe investments. Size of Asset One way to select a fund is to ensure it has at least Rs. 500 crore in assets. Smaller funds aren’t always bad, but investors should be aware that they carry a higher risk before investing in them. [B-02] Conclusion To get more information on SIP investment and SIP plans, you can contact Piramal Finance. They are the leading experts in financial solutions for every problem. Talk to them and start your SIP investment today.
08-11-2023
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Other

MSME Registration in India &#8211; Process, Documents &amp; Benefits

The Government of India has launched many schemes in the form of loans and subsidies to help and promote individuals in their business ventures. One of them is the MSME loan scheme, which aims to finance and support medium-, small-, and micro-sized businesses. Do you also want funds from the MSME loan for your startup? Well, this article will help you navigate through it in detail. In this article, we will discuss the MSME loan scheme, why it was introduced, its benefits, and how to get one for your new business. [B-01] What is the MSME loan scheme, and what is its primary objective? The MSME Ministry of India is an individual body that has executed and implemented the MSME loan scheme for the betterment of emerging small businesses. This loan system provides unsecured loans to individual, small business units to help them meet their business-related expenses, which is its prime objective. Not only the government, but private financiers and private banks have also started giving MSME loans to individual, rising businesses. The main differences between government and private MSME loan schemes are the interest rate of the loan and the loan amount. This loan has self-tailoring features, which means you can get an MSME loan scheme as a short-term loan scheme, a medium-term loan scheme, or a long-term loan scheme. You can take it as a cash credit, letter of credit, working capital loan, etc. You can use this lump sum amount to buy raw materials, use them for transportation, or pay for any services. What are some of the exclusive benefits of the MSME loan scheme? Here are some of the exclusive benefits of getting an MSME loan: 1. Low rate of interest: Banks charge a low rate of interest to small and micro businesses to ensure that the minimum amount is spent on repaying the loan and the maximum amount goes into funding the business venture. The rate of interest for MSME loans in India is somewhere in the range of 10% to 25% per annum, with an exception of 1 to 1.5% by some lenders like FlexiLoans and ZipLoan. 2. Accessibility: MSME loans in India are highly accessible and easy to apply for. The whole process is hassle-free with serious exemptions, which makes it an ideal loan system with the fewest cons. 3. Collateral-free: Since it is an unsecured loan system, there is no requirement for collateral, a security deposit, or a guarantor. If you don’t have any of those, you don’t need to worry about your loan getting sanctioned. This decreases the burden on small and micro businesses and helps them see beyond this. 4. High flexibility: MSME loan schemes are also a short-term affair, and you require them only to cover your short-term requirements. Since an MSME loan isn’t a long-term commitment, you can easily focus on developing your business. 5. The long tenure of repayment: The tenure of repayment is not fixed for every bank, but it can often be started at 3 years and stretched up to 15 years, which seems like a reasonable amount of time. You can repay your loan within this period in the form of instalments. 6. High loan amount: If you get your MSME loan sanctioned, your loan amount can go up to Rs 50 lakh, which you can use in your business venture. You can use it to buy new types of machinery, and raw materials, expand your manufacturing, hire more workers, and pay for other services. What is the eligibility to get an MSME loan in the first place? The eligibility criteria to fulfil to get an MSME loan are as follows: 1. Type of business: Your business type determines whether you are eligible for MSME loan schemes. The types of businesses that are eligible for MSME loans are: Manufacturing sector Service sector Any form of non-farming activity 2. Business experience: In your current business, for which you are applying for the MSME loan, you must have a minimum of one to three years of business experience. This is because you have to show the banks that you are well experienced in the business venture you are in. 3. Business turnover: A business turnover of about 12 lakh rupees per year is the benchmark for an MSME loan. However, it is again very subjective because different banks have different criteria. 4. Credit score: It is a common analogy that a good credit score will increase your chances of settling on a better deal on any type of loan, which stands to be true. If your credit score is 750 or more, it is always a plus for you and increases your chance of getting a larger loan at a lower rate of interest. 5. Clean loan history: You are always ahead if you have been consistent in paying your previous debts. Banks prefer candidates who have a good track record and pay their instalments on time. [B-02] Conclusion: The top banks’ interest rates for MSME loan schemes range from 8.5% to 15% per year. Even some well-known banks offer lower rates with longer repayment terms. You should use calculators in this case, where you can spin different loan amounts and interest rates to see what suits you best. You should focus on improving your credit score, improving your business venture, and increasing your business experience to make a better pitch and get a decent loan. If you prefer consuming articles and blogs on these topics, you can have a look at the official website of Piramal Finance. They have some amazing content on loans, investments, financial consulting, SIPs, etc.
08-11-2023
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Gold Loan

List of all Gold Loan Schemes in India

What Is A Gold Loan? A gold loan or loan against sovereign gold bonds is an option for borrowers unable to satisfy their immediate or long-term financial obligations. Here, the loan is secured by a piece of gold jewellery pledged by the borrower. The Indian financial institution won’t lend you more than 90% of the current value of gold. As of this writing, the carat value of pledged gold ranges from 22 to 24. [B-01] Five of India’s Most Prominent Corporations A Golden Harvest Hoax by Tanishq Tanishq Golden Harvest Plan members can spend their invested cash to acquire jewels at a discount of up to 75% off the list price after the gold loan scheme has run its course, which takes six to ten months. Scheme conceived by Tanishq Swarna Nidhi When you invest in the Tanishq Swarnanidhi Scheme, you can save away gold in kilogramme quantities for use when making future purchases of gold jewellery from Tanishq. Your monthly deposits over eight months will be converted to gramme equivalents of gold at the prevailing market rate at the time of deposit. The total amount paid out throughout that time frame is not limited. India’s Poverty Alleviation Program (Suvarna Poornima) Each member can decide on their monthly investment amount. However, once a programme has begun, the chosen sum is final and cannot be modified. Plus, it has to be at least Rs. 3000 and may only go higher from there in Rs. All compensation received through the programme is reduced by 10%. The Gold Rush in Papua New Guinea The Panchayat Dhana Vardhana is a gold-buying savings scheme. Gold is acquired with prepayment. An individual can select a term length between 12 and 36 months. Individuals of diverse income levels can participate in this plan because of its modest entrance fee of Rs. 500. Kalyan Jewelers’ Gold Ponzi Schemes You may withdraw from Kalyan Jewellers’ best gold loan scheme at any moment during the year, and you must purchase the required quantity of gold. The monthly payments might range from Rs. 500 to Rs. All investors must be Indian nationals. This includes trust funds, hedge funds, banks, and universities. Minors can invest on their parents’ behalf. The Gold Loan Process Explained The application method for the gold loan scheme is meant to be as straightforward as possible for all potential borrowers. However, it’s important to realise that banks provide different gold loan schemes to accommodate your unique circumstances. Before applying, please explore our website and become acquainted with the many gold loan programmes we provide. Now, here’s what you need to do to receive a fast gold loan scheme: Step 1: Don’t hesitate to visit the local branch of your favourite banking institution with a stack of Know Your Customer documentation and some gold objects. Step 2: Our expert will next examine our gold and the supporting documentation. Step 3: The Gold Plan you choose and the scores you receive will be used to determine your gold loan scheme offer. Step 4: Find out the loan’s terms before considering whether or not to accept the offer. Depending on your preference, you can either have the funds sent to your account or receive them in the form of a paper check. Qualifications for gold loans The standards for a gold loan were intended to be available to as many individuals as possible. Everyone who owns gold jewellery could profit from this loan. The following are the bare minimums that must be met to qualify for one of these loans: A citizen or permanent resident of India is needed for the application. The farming community, company owners, paid and self-employed professionals, and the trade community all have simple access to gold loan schemes. Pensioners and stay-at-home mothers can also apply for loans against gold. Candidates might be any age between 21 and 60. Loans for gold are offered without requiring a credit check or evidence of income. The value of the gold pledged and the gold loan plan selected are the only factors used to establish the loan amount. Evidence Needed When Applying for a Gold Loan The following is an example of the types of documents a borrower might be requested to provide to obtain a loan. However, the specific types of evidence required to secure a loan will vary from lender to lender. Aadhaar, Permanent Account Number, Voter ID, Driver’s License, Passport, and Other KYC Documents. Proof of residency can be provided by various means, including Aadhaar cards, voter IDs, passports, driver’s licences, and utility bills. A borrower should ask whether they need to bring anything other than identification while searching for “gold loan providers near me.” What You Need to Know About Gold Loans Payments are processed and cleared in record time. Loan proceeds for gold loan schemes generally reach the accounts of authorised borrowers within 24 hours of the loans’ approval, in contrast to the days or weeks that borrowers must wait for other loans. Consequently, this loan is appropriate for dealing with unanticipated costs like medical expenses, financial difficulties for enterprises, etc. Fortunately, there is a convenient option that will come to your home. The gold loan principle is released to the borrower’s account by electronic transfer within minutes, and the representative deposits the gold. The borrower no longer has to take time out of their day to visit the offices of a gold loan scheme provider; everything can be handled digitally. How Much Are Online Gold Loans Worth? One of the main benefits of online gold loan schemes is convenience. Therefore, the borrower’s location makes no difference. The average time it took for a lender to send an officer to the borrower’s location to determine the gold’s worth after receiving a loan request was 30 minutes. The lender will release the money once everything has been confirmed and cleared. [B-02] Conclusion: Sick of reading about different loans? Are banks denying your claim? Gold loans solve major issues. They help people get the money during stormy days. This is a secured loan, so the interest rate is lower than many other short-term loans. Aadhaar card holders can get a gold loan scheme. Visit Piramal Housing Finance for more queries.
08-11-2023
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