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PMAY(U): Pradhan Mantri Awas Yojana – Urban 2022

Are you searching for affordable and accessible housing schemes for rural regions of India? So you are in the correct spot. The Government of India’s Pradhan Mantri Awas Yojana (PMAY) programme aims to give poor urban access to affordable housing by 2022. Under the PMAY programme, the cost of building new homes is split between the state governments and the government of India in the following ways — 60:40 for plain areas and 90:10 for hilly and northeastern areas. Check information listed below for more details. [B-01] Pradhan Mantri Awas Yojana-Urban (PMAY), which is being run by the Ministry of Housing and Urban Affairs (MoHUA), started on June 25, 2015. It is one of the most important projects of the Indian government. The goal of the mission is to make sure that all eligible urban households will have a pucca house by 2022. The Indira Awas Yojana was renamed to the Pradhan Mantri Awas Yojana-G (PMAY-G) in 2016, replacing the earlier name. The program’s goal is to provide eligible beneficiaries in India’s rural areas with housing that is both affordable and accessible. For a term of up to 20 years, the (PMAY) scheme’s interest rate starts at 6.50% per annum. The scheme’s implementation period has been extended till December 2024, following requests from states and Union Territories. This programme is meant to help low-income people in cities get affordable, environmentally friendly homes. As a credit-linked subsidy scheme (CLSS), it gives PMAY scheme beneficiaries an interest subsidy when they take out a loan to buy or build a new primary residence. What is the Objective of PM Awas Yojana? India’s middle class has been hit very hard by the constant rise in the cost of land and buildings. This is especially true for people who live in large cities. The government of India announced the Pradhan Mantri Awas Yojana, or PMAY, to promote and support housing that is both sustainable and affordable. In India, this credit-linked subsidy scheme (CLSS) with the slogan “Housing for all by 2022” plans to build more than 2 crore homes for people from lower-income groups. Qualified borrowers would be able to get loans with lower interest rates to buy homes, buy land, or build new homes. The loan interest subsidy is only for people in the Economically Weak Sections (EWS), the Lower Income Group (LIG), or the Middle Income Group (MIG). What are the Features of the PMAY Scheme? Pradhan Mantri Awas Yojana 2022 aims to accomplish the universal provision of shelter by the year 2024. In addition to its stated goal, the plan has the above benefits for its recipients. The goal of pradhan mantri awas yojana is to provide low-cost housing for those from economically disadvantaged backgrounds. Housing for women and members of minority groups, such as the Scheduled Castes and Scheduled Tribes, is a top priority. The initiative is available to seniors, and the government would give preference to pradhan mantri awas yojana gramin online applications for properties on the ground floor. Participants must enrol in the Pradhan Mantri Awas Yojana before they can receive rewards. In addition, the recipient must be a woman, typically a mother or a wife. Under the PM Awas Yojana, the transgender community, widows, and those from lower economic brackets are given preference. Pradhan Mantri Awas Yojana Eligibility Criteria The annual household income of a person is used to classify him or her into extremely low-income, low-income, or middle-income brackets. A family can’t get Pradhan Mantri Awas Yojana Gramin (PMAY) online application benefits if their annual income is more than Rs. 18 lakh, which is the upper limit of the MIG group’s income bracket. It’s important for a woman’s name to be on important property papers like the deed. A woman can use the Pradhan Mantri Awas Yojana if she owns her home outright or if she and another person, at least one of whom must be a woman, own the property together. Only if there are no women in the house can this be broken. (PMAY) can only be used to buy a brand new home. To be eligible for the credit-linked scheme mentioned above, a person can’t own any other pucca homes. The recipients of this (PMAY) programme must never have received housing-related funds or benefits from the federal or state governments for it to be effective. The neighbourhood, town, village, or city where the house or piece of property is situated must be included in the 2011 Census. The Pradhan Mantri Awas Yojana, which is a credit-linked subsidy programme, is not open to anyone who has already gotten help from the banks. Any work done on an existing home that is the main reason for getting a loan must be done within 36 months of the first loan payment. [B-02] Summing-up The goal of this article is to look at the Pradhan Mantri Awas Yojana (PMAY) in depth. We hope that after reading this article, you have a much better understanding of the scheme’s goal: that all eligible urban households will have a pucca house that is both affordable and easy to get to. Piramal Finance provides unbiased information and reviews about trading, investing, and finance. Visit Piramal Finance for more in-depth, educational articles.

08-11-2023

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Interest Facts About Online Share Market Trading

While share trading in India has been around since the 1800s, it was only recently that the market became more accessible to people through the internet. There are several interesting facts about online share market trading in India that you may not know unless you’ve been trading shares online as long as I have! Here are some of the facts that make online share market trading even more enjoyable than it already is! [B-01] 1. Bombay Stock Exchange, the Oldest Exchange in Asia The Bombay Stock Exchange (BSE) was founded by Mr Premchand Roychand in 1854 and is the oldest stock exchange in Asia. There are over 5000 companies listed on the BSE, making it the largest stock exchange in the world as per the number of companies listed. 2. Security and Exchange Board of India (SEBI) SEBI is the body governing the Indian securities industry. It provides a forum for a free and fair market to trade securities and has been established with the following objectives: (1) to protect investors, (2) from ensuring orderly markets, and (3) to promote fair competition among different sections of society. SEBI was established in 1993 by an Act of Parliament called the SEBI India Act, 1992. In 1992, the investment broker Harshad Mehta, convicted of securities fraud and manipulating the Indian Stock Market, led to the rise of the Security and Exchange Board of India and the Indian Government, giving the Board more power in 1995. 3. Total Number of Exchanges in India India is not just NSE and BSE, but seven others as well. Hence, India has 9 Stock Exchanges and 2 Commodity Exchanges. The oldest is the Bombay Stock Exchange which was established in 1854. Following are the exchanges in India: I. Bombay Stock Exchange (BSE) ii. Calcutta Stock Exchange iii. India International Exchange (India INX) iv. Indian Commodity Exchange v. Metropolitan Stock Exchange vi. Multi Commodity Exchange of India vii. National Commodity and Derivatives Exchange viii. National Stock Exchange (NSE) ix. NSE IFSC Ltd. 4. Bull and Bear Market A bull market is defined as when the prices of stocks and other securities rise. It refers to the situation that happens when more buyers than sellers exist for an asset, which results in a price increase. According to mythology, bulls have horns pointing upwards, representing upward movement. Hence, the bull market refers to the climbing market. A bear market is the opposite – it’s when prices are falling, so there are more sellers than buyers. In contrast to a bull, a bear has its palm facing the ground; hence the bear market resembles a falling stock market. As with any market, they both come and go depending on what people think of different markets at different times. For example, during the 2008-2009 financial crisis, the US economy was in recession, meaning that many investors lost faith and sold their assets to avoid further loss. 5. Trading can be Started with any Amount of Money There is no minimum amount that you need to start investing with. You can invest any amount of money, and if you are not happy with your investment, you can close it anytime before the end of the day. You can also use any of your credit cards to deposit money with these companies; there is no limit on investing with them. You need to decide the cash you want to invest and the shares you want to buy, then buy from them. 6. Indian Companies in Comparison to Karachi Stock Exchange (KSE)’ The Indian stock market has been considered one of the fastest-growing markets for years. Market capitalizations of Indian companies like Tata Consultancy Services (TCS), Reliance Industries Ltd (RIL), and HDFC surpass Karachi Stock Exchange’s combined capitalization. 7. The Rule of 72 in the Share Market For beginners seeking investment in the share market, the first question is, how much time will the investment double in value? A fixed interest rate is required to calculate the time needed to double capital using the simple rule of 72. A return on investment can be approximated by dividing the rate of return by 72. For example, suppose that a person invests Rs 3,00,000 at 8 per cent. So 72/8 = 9, i.e., nine years will be taken for him to double the capital. 8. Total Investors in India It is revealed that just 2.6% of the entire Indian population are stock market investors. Among India’s major cities, Mumbai is said to have the highest number of Demat accounts. It is speculated that the statistics are low because only those with higher education and those who can afford it invest in stocks. Apart from these two points, there are other reasons for not investing, such as lack of awareness and knowledge about supplies or lack of funds to invest, which could be linked back to income inequalities between different sectors and classes of society. 9. Most Expensive Share in India MRF is the most expensive share on the Indian stock market, costing 89,904. Similarly, the Berkshire Hathaway share is the most expensive share in the world, at 4,78,675.55 USD. 10. You can Set Up a Demo Account to Practice Investing in stocks can be a risky venture, but it can also be a profitable one. If you are not feeling brave enough to invest your hard-earned money into the stock market, then you need to set up a demo account first. Demo accounts allow you to practice investing without risking your own money. You will have complete access to all functions that your live account would have, but instead of using real money, you will use what is called play money or fake money. 11. Nifty has grown more than 18 times since its inception Nifty was started in 1995 and has grown more than 18 times. Its base price was 1000; currently, it is at 18,512. The index is traded at the NSE (National Stock Exchange of India) and tracks the 50 largest companies by market capitalisation. [B-02] Conclusion India is one of the world’s leading economies. Online share markets have been an option for Indian investors since 1999, and even though it is still a relatively new concept to many of them, it is quickly gaining popularity. If you want to invest or trade stocks online, click on Housing Finance Company in India – Piramal Finance for more details and tips.

08-11-2023

Investment

Picking Asset Allocation for Your NPS Investments

Do you not long for a retirement that is free of financial worries? Yes, of course, you do. You may pave the way by formulating a high-risk approach to investing. In this situation, the national pension scheme is a popular investment choice. This strategy optimises your assets over time. It protects them from market volatility. It helps them grow so you can have a secure retirement fund. It helps people have a safe and secure future. Also, it eases the mental burden on people. [B-01] What is NPS? The National Pension Scheme is an investment plan and retirement savings programme. The government of India came up with this. It was to provide financial security for its senior citizens. It is vital to have measures like these that will help people. As a result of this strategy, your earnings will mirror the stock market’s earnings. It offers valuable tax benefits and a range of investment terms to suit your needs. This programme will help you in retirement by providing a regular pension check. It also gives you a large chunk of money to use in any way you see appropriate. This helps the elderly have a stress-free life. Old age does not bother them much then. Understanding the Varieties of NPS Assets Regular contributions to an NPS scheme over time allow the money to grow over a wide range. Besides, you may decide what share of your portfolio to put into various asset classes. It is so you can get the best possible returns. See below for a rundown of the many investment options. Equity The majority of people put their money into stocks and shares. It is because they have the potential to provide high rates of return over the long term. To do this, you buy stocks and other instruments linked to the equity market. Government Securities It is the safest investment option. Government bonds provide poor returns and little liquidity. Here, you would put your money into government-issued bonds. Corporate Debt The vast bulk of the money in this category will be in bonds issued by large infrastructure firms. It may also be in government agencies and other enterprises. Different Types of Investment Funds There are some sectors that get more money. Real Estate, infrastructure, mortgage-backed securities get the money. Let us learn more about it in detail through this blog. Distribution of Your NPS’s Assets There are several types of assets, each with pros and cons. For this reason, deciding how you distribute your national pension scheme assets may take time. We’ve included recommendations on distributing your NPS scheme investments’ assets for convenience. For your national pension scheme asset allocation strategy, you may choose either the active or automatic route. Auto Asset Allocation As the name implies, this method uses a computer-generated approach to allocating assets. Your fund’s asset allocation and investment strategy will evolve. This will be according to the choice as you approach retirement age. To safeguard savings from short-term fluctuations, the asset allocation shifts as retirement nears. Young people often have access to investments more focused on long-term growth. Aggressive Life Cycle Fund As a member of the Aggressive Life Cycle Fund, 75% of your savings are for stocks. It is also for other equity instruments until you reach age 35. The remaining of your NPS scheme stock allocation investment is in corporate debt. It is also in government securities. Both future contributions and existing fund assets will scatter in this manner. The first 75% equity allocation allows you to chase high market returns. After the collection of the money, the investment is in riskier asset classes to safeguard it from market fluctuations. Investing in a Low-Life Cycle Fund The Moderate Life Cycle Fund will invest up to half of your money in stocks and bonds until you reach age 35. Every year, 2% of your national pension scheme stock allocation moves into the lower-risk category. The design of the fund is so that you may reap the benefits of both stable growth and security for your holdings. A wise investment in the life cycle This distribution of funds is the safest because of how the structure and design. Only 25% of your portfolio will is invested in equities until you reach age 35. Every year, 1% of your national pension scheme stock allocation rebalances away from stocks. It goes towards other fixed-income investments, including corporate debt and government securities. If you have a low-risk tolerance and want to play it safe with your money rather than try to grow it, this is your path. Active asset allocation This is your best bet if you want to make all the asset allocation decisions yourself. But it does come with certain boundaries. It will allow you to become as precise as you’d like. You can only invest 75% of your money in equities until age 50. The greatest exposure limit of your national pension scheme stock allocation will drop by 2.5% per year beginning at age 51. You may put up to 5% of your portfolio into non-traditional investment vehicles. During the end of your work, the short-term volatility of your NPS investment falls. It is by adhering to the limits inherent to active asset allocation. [B-02] Conclusion NPS ensures good retirement for people. Your choice about risk and reward will determine the asset allocation that you go with. These preferences will depend on your financial goals. To know more of the scheme, you may consult with an expert at Piramal Housing Finance. Give your finance knowledge a good boost by reading blogs and articles.

08-11-2023

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NPS Vs. SIP: Which is Better Investment Plan?

Retirement planning should be a priority for everyone. It is essential to save money in a disciplined manner to ensure that you have enough to support your expenses after you retire. The two most crucial aspects of retirement planning are beginning early and making investments that offer inflation-beating returns. Most individuals plan for retirement by contributing to the National Pension Scheme or a mutual fund SIP. This article will help you choose between the two options. [B-01] National Pension System In 2004, the government initiated the National Pension Scheme, for government employees. In 2009, NPS was extended to private sector employees in India. You may take part in the program for as long as you work for the company. You may withdraw up to 40% of the entire corpus once you reach retirement age. The remaining 60% may be credited monthly, excluding the required annuity portion. Flexible investment options under the NPS When investing in the National Pension Scheme, you may do it whenever it is most convenient. Participants are not obligated to make regular payments to the plan. Low-risk NPS investments often don’t need a lot of initial capital. The maximum allocation that may go toward stocks and shares of stock is 75%. That means it will have a more gradual response to market shifts. The scheme’s profit potential and the pace of capital appreciation are both capped by this restriction. Investment Options Under NPS National Pension Scheme (NPS) investors may choose between two primary investing options: active choice investment and auto choice investment. The first alternative allows you to invest in whatever assets you choose. It allows you to tailor your investment strategy to your risk appetite and long-term financial objectives. In the latter, the plan manager makes investment decisions based on your age group. Your portfolio’s risk would thus decrease as you get older. Profits: The NPS is only moderately profitable as it does not invest in stocks and other equity shares. The average annual return on NPS funds is between 8% and 10%; however, it is still higher than other fixed-income investments. Investment Allocation You can allocate only 75% of NPS assets to purchase equity funds. This gradually reduces by 2.5% each year once you turn 60. This is with a view to decreasing your risk exposure as you grow older. Withdrawals Strict withdrawal limitations apply until the plan matures or you reach retirement age. You can withdraw up to 25% of your corpus for: Medical expenses. Education (a child’s) Marriage (your own or that of a family member) House purchase (or construction) Also, you can withdraw at most three times over the program’s tenure, with a five-year waiting period between each withdrawal. Mutual Fund Systematic Investment Plans A systematic investment plan (SIP) allows you to invest in a certain mutual fund and get consistent returns. Mutual funds are pools of money from several investors used to make investments. These might be market-linked or fixed-income options. SIP yields provide more lasting benefits than NPS incentives. With SIP’s use of compounding, an early investor in a diversified equity portfolio may save considerably over time. You may forget the stress of trying to time the market entirely with the SIP method. Investments in debt funds, also known as fixed-income funds, may provide larger returns with lower risk than equity funds. Some of the features of a systematic investment plan are: Consistent Savings To participate in SIP plans, you must make monthly contributions to the fund of your choice. This disciplined approach to investing will help you develop more consistent spending patterns. You may begin investing with as little as 500 rupees and save a sizeable amount for your golden years. Compounding The interest on a SIP account is compounded quarterly. The compounding effect causes your capital to grow exponentially. Say, Mr. A, now 40 years old, decides to start putting Rs. 500 each month into an ELSS fund that yields 14%. He plans to hang it up when he becomes 60 years old. Consequently, he has 20 years to see a return on his money. If he invested Rs. 1.2 lakh initially, over 20 years, he would have around Rs. 6.5 lakh in returns. Over 20 years, his investments will generate around a sixfold return. The Typical Indian Rupee Price Rupee cost averaging in SIP might be beneficial. You may use this feature to make a larger investment in a fund when the market is down and a smaller investment when the market is up. Higher Profits With SIP mutual funds, investors may expect substantially higher returns than NPS mutual funds. While the NPS does not directly invest in stocks or shares of equity, it may do so via mutual funds. In the long run, equity funds typically return between 14% and 18% but react to market volatility the same way as other investments. Wider Choice Mutual funds provide you access to a wide variety of investment opportunities. You can purchase stocks and equity shares via equity funds and ELSS. Hybrid funds are the best way to diversify your retirement portfolio. Investing Made Easy Easy-to-understand steps guide you throughout the SIP investment process. You can choose to link your bank account and agree to automate payments. The required investments will be debited from your account on the due date. Withdrawal Except for ELSS funds, mutual fund investments have no time restrictions on withdrawals. To supplement your retirement savings, you might begin a systematic withdrawal plan after you have saved enough. [B-02] Conclusion Your optimal investment option will depend on your risk tolerance. Also, how soon you want to retire, how long you want to invest and how much capital you want to build up. Mutual fund SIP investing is superior to the NPS if flexibility and liquidity are a priority. For more information and insights on investing, consult Piramal Finance.

08-11-2023

GST

The Latest Impact Of GST On The Indian Economy

A lot of people have already heard of the GST, but what about the most recent impact the GST has had on the Indian economy? Does the GST have a detrimental effect on the Indian economy? What can we learn from the GST project’s analysis of its effects on the Indian economy? All of these subjects will be clarified here intelligently and engagingly. We must first understand what the GST is and how it is implemented to understand its impact on the Indian economy as a whole. The impact of GST on various sectors will also be covered in detail. [B-01] What is GST? Goods and services produced or sold within the country are subject to the Goods and Services Tax (GST). The Goods and Services Tax (GST) is levied on production from the raw material stage until it is shipped or sold within the country.Production is taxed from the raw material stage. The GST must be paid by the customer as well as the producer. What this means is that the GST will be collected where the final product is used. Therefore, the tax is levied in Delhi even if the goods were manufactured in Haryana. When the value is added at any stage of manufacturing, GST is also collected at that point. Types of GST The Goods and Services Tax (GST) is applied throughout the whole value chain in India. This fee is assessed at the time of use, or when a service is used. The various GSTs are as follows: CGST (Central Goods and Services Tax): The CGST, or Central Goods and Services Tax, is levied on all sales made inside a single state and collected by the federal government. SGST (State Goods and Services Tax): As the name implies, the State Products and Services Tax (SGST) is a tax collected by the state government on the sale of goods and services inside the state. IGST (Integrated Goods and Services Tax): Taxes on interstate sales and purchases are collected under the Integrated Goods and Services Tax (IGST). The tax money is shared between the federal government and the individual states. Impact of GST on different sectors Pharma The pharmaceutical and healthcare businesses in India stand to gain from the GST’s simplified tax structure. Healthcare for people of all income levels will be made more affordable, and the government will provide a tax benefit in return. E-commerce There is a lot of room for growth in the e-commerce sector, and one area where it can make a difference is in lowering the tax burden on businesses along the supply chain. Meanwhile, the GST tax received at the source is something that online retailers would have to cope with. Telecom Sector Prices should go down in the telecom industry because storage, shipping, and other costs are going down. Logistics In a country as big as ours, logistics are crucial to the economy. Under the “Make in India” umbrella, a logistics company that is well-organised and structured stands a great chance of flourishing. Fast-moving consumer goods or FMCG Products that are in high demand and have a short shelf life are referred to as FMCG Due to the elimination of numerous sales depots brought about by the GST, FMCG companies would save a substantial amount of money on logistics and distribution. Farming and Agriculture India’s agricultural sector is the country’s most important economic driver, contributing more than 18% to the country’s GDP. As logistics improve, so will the cost of shipping food and other agricultural products. Therefore, the effect of GST on wholesalers can be shown to be favourable. Start-ups Do-it-yourself compliance, increased registration limits, unfettered movement of products and services, and tax credits on purchases are just some of the ways in which GST has helped Indian business owners. Companies operating in India, especially those in the e-commerce industry, now have a simpler time determining their tax liability. Working in a small business? You should know how the GST will affect the Indian economy. Automobile When compared to the previous taxing system, which included excise, VAT, sales tax, road tax, motor vehicle tax, and registration duty, the new GST system is significantly more simplified. Reduced prices for automobiles are anticipated to boost business. Textiles Sector Textiles are an important industry in India, employing both professional and unskilled workers. The textile industry in India, which currently accounts for 10% of overall exports, is predicted to expand as a result of the removal of customs taxes. Most small textile businesses will benefit from GST because cotton is a crucial input. Some of the ways in which the impact of GST micro- and small-sized enterprises are described below. Individuals who work for themselves Freelancing and other forms of independent work are relatively new in the American economy. Still, the GST has made tax filing simpler for them because they are considered service providers. These people need to be aware of how the Goods and Services Tax (GST) affects their enterprise and how to comply with GST legislation. What is the effect of GST on consumers? Consumer prices will rise immediately. Essential commodities will be taxed the same or higher. GST benefits the public in several ways. Small firms, like larger ones, must pay compliance costs, which may be passed on to customers at higher product prices. GST will have far-reaching benefits in India. The fall in taxes due to consumer goods manufacturers like fast-moving consumer products will force automakers to lower costs (FMCG). Thus, these services will be easier to obtain. Raising demand by cutting prices speeds up manufacturing and boosts profitability. Thus, the economy and buyers and sellers benefit. Output increases allow expansion, which creates jobs and tax income to recoup GST costs. This boosts the economy and average people’s opportunities. GST mandates invoices for all purchases. A solid billing system reduces corruption and hidden money. These factors have plagued Indian citizens. [B-02] Conclusion The purpose of this article is to give a comprehensive examination of the impact of GST on the Indian economy. The Goods and Services Tax (GST) is a major change to India’s tax system. Buyers and sellers are affected by the GST. FDI will increase in India, lowering inflation and making business easier. GST has raised the price of medications, phones, dairy products, and other goods and services, hurting GDP. Thus, India’s GST consequences must be examined. GST has positives and cons in India. Investment Reliable does not offer financial advice, but we do provide unbiased information and evaluations on trading, investing, and finance. Users ought to always carry out their own research. Also visit, Piramal Finance has more in-depth, educational, financial articles.

08-11-2023

Home Loan

Need Instant Funds? Opt for a Top-Up Loan

In today’s times, almost everyone dreams of owning a house. People apply for home loans after putting a lot of effort into choosing the ideal home and preparing their finances. After the first payment, which is the down payment, the property buyer starts making repayments toward the principal loan amount every month (i.e., EMIs). While a mortgage loan is a great place to start, you may need extra cash for unforeseen events. Because of this, several banks and lenders provide their existing customers with the chance to take out a home top-up loan. This home loan supplement can remove or greatly reduce the urgent need for instant funds. [B-01] What is a top-up loan on a home loan? To “top up” a mortgage means to take out one more loan on top of the one you already have. Remodelling your home, expanding your business, paying for emergency medical bills, taking a vacation, or furthering your education are all good uses of such extra cash. Your best bet for such expenses is a top-up loan. You can take out such a loan from many banks that offer attractive home loan features. Your EMI payments may need to go up a little to cover this extra cost, but if you plan your finances well, it is manageable. Benefits of an Instant Home Loan Top-Up 1. Extended Repayment Tenure A home loan extension has a far more drawn-out repayment schedule than a typical personal or business loan. A top-up on your home loan may be for a shorter or the same period as your existing mortgage. By spreading out your payments over a longer period, you can budget your money well and ease the pressure from your monthly payments. For instance, a 15-year top-up loan can be added to an existing home loan tenure. 2. Lower interest rates Home loans fall under the broader category of secured loans, so they often have lower interest rates. If you choose a home top-up loan, the interest rate on the additional loan amount is the same as on your existing home loan amount. 3. Rapid Processing One of the key benefits of a top-up loan is the quick processing time. Many lenders accept applications for pre-approved supplemental loans. This process requires little documentation. Most of the time, the quick home top-up loan is sanctioned within a few days. 4. Increased Loan Amount If you have been consistent with your EMI payments and have repaid a good sum, you may qualify for a larger top-up loan amount. The bank will re-examine your credit history before finalising the supplementary loan and its amount. 5. Tax Benefit Suppose the top-up amount is used for buying, constructing, renovating, or maintaining a house. In that case, the interest paid on the loan may be deducted from your taxable income within the limits of Internal Revenue Code Sections 24B and 80C. If you want to know how to make the most of these provisions, talk to a financial advisor. Advantages of a Top-Up Loan Over a New Loan These are the reasons why a top-up loan is better than taking out a new loan: You can save time by not having to apply for loans under several names. Taking out many loans at once might hurt your credit history and score (CIBIL). There are no hidden costs. Also, there is a bare minimum fee required for mortgage top-ups. On the other hand, taking out a new loan may cost you more than the old one, owing to charges like processing fees. A home loan has one of the lowest interest rates in the market. Besides this, the overall cost of a top-up loan is also far lower than that of personal loans or credit cards. Since the lender has already verified your documents during the original application, the paperwork for the top-up loan would be minimal. Because a top-up loan increases your overall loan amount, you can always negotiate with your lender to extend the loan tenure. This way, you can keep your EMIs within your means. A loan extension approval will be much quicker than a new loan approval. You are seen as an established customer rather than a brand-new one. So, the lender approves the top-up without much hassle. Eligibility for a Home Top-Up Loan Home loan top-ups are only given to the existing clients of a bank. Also, your lender will only provide you with a top-up if you have been regular with your EMI payments for at least a year. Your mortgage qualification may be calculated using a home loan eligibility calculator. The lender will provide you with instant funds if you meet all the requirements. Tips for Getting an Urgent Addition to Your Mortgage Piramal Finance offers instant loan top-ups to all existing customers who qualify for them. Taking out a home loan with Piramal Finance gives you access to low interest rates and exciting deals. With the company’s quick top-up loan processing, you can have all your urgent money needs met. [B-02] Conclusion With a top-up home loan, you can quickly and easily borrow extra funds against your existing mortgage. This loan is versatile, and the amount can be used for various purposes. Due to an extended loan tenure and feasible EMIs, a top-up adds no burden to your finances. If you are met with sudden financial needs, Piramal Finance makes it easy and convenient for you to get a home loan extension. For more information or financial assistance, check out their other blogs and products.

08-11-2023

Personal Loan

Is it a good idea to take festive loans for festivals in 2022?

Loans are a good way to get financial support and fulfil your needs and requirements. Be it for personal reasons like buying a property, financing education, or for business, loans are always a viable option. Loans decrease your financial stress and help you manage your finances more effectively. You can easily repay them at low-interest rates in EMIs. But with all the benefits of availing of a loan, a question pops up, “Should you take a festive loan for festivals?” The answer is both yes and no. Yes because you can use the amount from the festive loan to pay for some urgent expenses. No, because it may cause stress on your finances. [B-01] Read on to learn more about the key aspects of festive loans and how you must use them. Festive Loans for Business A business loan is a financial aid you get from a lender. You can use that money to invest in your business. It can help grow your business at a rapid pace. The lender charges you a specific rate of interest and defines a set period within which you must repay the loan. During festivals, a festive loan can help you stock more goods to meet the demand. For business reasons, a festive loan is one of the best ways to increase sales. You can use the loan amount to invest in your business venture and get decent returns. You can buy raw materials, develop your new units, and promote your products. A festive loan is a good way to take your business idea to another level. What are the benefits of taking a festive loan to invest in your business? There are several benefits of applying for a festive loan to fund your business. Meeting the consumer demands As festivals near, consumer demands go high and to maintain sales, you have to ensure a constant supply. A festive loan can help you buy more raw materials and produce more goods to maintain stability and meet customer demands. Investing in equipment To boost production, you have to upgrade the equipment and improve your manufacturing units. A festive loan could also be a good way to buy new machinery and adopt better technology. Advertisements and Marketing Advertising and marketing your products are equally important. You can take a business loan to pay for these costs. This will help you get more customers and help boost your sales. Helps in Hiring You might also need more people to control and manage all of your units. A festive loan can help you in hiring trained workers who will contribute better to the growth of your venture. They will help boost your production and also assist in better managing the operations. Website creation and media management A festive loan can help you with the finance you need to promote your website and social media handles. This will help you to bring better reach and insights to your business. So, from a business perspective, a festive loan is a good option. But what happens if you take a festive loan for meeting your personal needs? Festive loans to meet personal needs A festive loan might help you to cover your festival expenditure like buying new clothes, jewellery, or expensive gifts. But, taking a loan to cover all these needs is not at all a good lucrative option. Personal loans should be taken to pay for main expenses like financing a marriage, buying a house, funding higher studies, or processing a downpayment. But, taking them for the sake of splurging in the festivals isn’t a strategic move. Is it worth it to take a festive loan for personal needs and if not, then why? A loan will always compel you to tighten your budget no matter what. On top of that if the purpose of the loan is only to shop for festivals, then it is not at all the right decision. Some of the downsides of a festive loan for personal needs are: – Financial stress After you get your loan, you have to pay it back in the form of EMIs. Not only that, your lender will charge you a rate of interest on the principal amount and you have to pay it till you have paid all your dues. The downside is it will cause stress on your budget and you will have to compromise on your expenses. Product value depreciates over time Whatever goods you buy during the festival, their value is going to decrease over time since they are not assets. For example, if you use a festive loan to buy a smartphone, within months, the price of the product is going to fall. So, all these goods that might give some pleasure for a short period, are not worth it to be bought using a loan. Unnecessary splurging A personal loan is the best choice during an emergency, where you don’t have any other financial option. But, just for instant gratification, taking a loan is not the right action. In addition, it will only create more burden on you after this period gets over. [B-02] Conclusion To meet personal needs, a festive loan is not always a good option because it will cause further financial stress. But, to grow a business during a festive season, a festive loan is a viable option. You have to assess both these parameters and decide the reason for which you want to apply for the loan. In case you want to learn more about loans and investments, then you should definitely visit Piramal Finance. They have many good blogs and articles to help boost your knowledge.

08-11-2023

Other

Secure Your Future with Best Retirement Pension Plan

An NPS scheme or retirement plan is a long-term investment strategy that helps people save money for their futures. It ensures a steady flow of money after retirement and helps deal with the unknown future. No one, regardless of wealth, can afford to forego a pension scheme. A pension plan allows you to save for retirement and ensure financial stability. In a pension plan, the insured must make regular payments until retirement. The insured receives regular payments from the accumulated money from a pension or an annuity. Pension plans guarantee a person’s financial stability after retirement and help in planning for unanticipated scenarios. [B-01] The money you save is quickly depleted, and you only use it for emergencies. Therefore, selecting the most appropriate pension plan is essential to guarantee that you will have sufficient funds to cover your essential living expenses in retirement. Contributing regularly to a pension plan allows your savings to grow through the power of compounding, which can have a material effect on your final savings corpus. Varieties of Indian Pension Plans Insurers and their clients may choose from a wide variety of NPS schemes. Several classifications may be made for these programmes based on the features and details of the benefits they provide. The following eight categories may be used to categorise these retirement plans further: Annuity Certain In this pension option, the annuity is paid out over a certain period. If the annuitant passes away before receiving all their pay-outs, the insurance policy’s beneficiary will get the remaining instalments. Guaranteed Period Annuity A guaranteed period annuity plan provides the annuitant with payments for a certain number of years (often 5, 10, 15, or 20) regardless of whether the insured person lives that long. Life Annuity Under a life annuity plan, the pension money will be paid to the annuitant until death. A pension payment will be given to the policyholder’s spouse in the case of the policyholder’s death if the option “with the spouse” is chosen. National Pension Scheme (NPS) The government of India created the NPS scheme to guarantee retirees a stable income for the rest of their lives. The NPS scheme places investor money in equity and debt funds according to their investment objectives. In the event of retirement, the policyholder may withdraw 60% of the total and use the remaining 40% to purchase an annuity. Investment returns at maturity are not tax-free. Whole Life ULIPs This pension plan option allows for tax-free income and partial withdrawals for the rest of the insured person’s life while the funds remain invested. If additional withdrawals are necessary, you may make them. Why should you save for retirement? A retirement savings plan such as the NPS scheme is essential, on par with medical insurance. Some clarifications are as follows. You can’t expect to be productive 24/7 Indeed, others intend to keep working until the day they die. Most people won’t be able to work because of age or health problems. Having a reliable revenue stream is very important in a situation like this. If you become disabled and cannot work, your retirement savings may continue to support you. A fund for potential medical expenses The risk of becoming sick increases as you become older. The effects of aging on your finances are similar to those on your body. Medical care is one of the most common types of expenses people face after they retire. If you don’t already have a retirement plan like the NPS scheme, you should consider getting one now. Medical Emergency A medical emergency may be devastating financially at any age, especially after retirement. A pension plan may help you prevent this kind of financial difficulty. You should do it to check an item off your list. Fulfil your dreams You may have given up on many dreams, ambitions, and objectives throughout your life, from when you were young to when you’re old and grey. But if you’ve picked one of India’s best retirement plans, you may check items off your list with relative simplicity. Sustained economic autonomy By keeping your financial footing after retirement, you can avoid putting undue strain on your children. Because of this, you can relax knowing that your family (children) is secure financially. You’d want to provide for your loved ones, too One more benefit of retiring comfortably with retirement plans is the ability to provide for one’s family in times of need. Why should you Start Planning for Retirement right now? The sooner you start saving for retirement, the more potential there is to amass a sizable nest egg that will allow you to live comfortably in your golden years. We’ll examine why you should start preparing for retirement now. With the help of your retirement plan in India, like the NPS scheme, you will have a steady income to satisfy the family’s financial obligations once you retire. Retirement funds may be used to deal with unforeseen expenses like medical care or financial hardships. The opportunity to retire without worrying about supporting yourself or others is a huge boon for retirement preparation. How to Calculate the Return of Pension Scheme? Retirement planning and saving, like the NPS scheme, are both important, but investors should prioritise returns when deciding which retirement plan to choose. Pension plan ROI may be calculated by using the following methods: The online pension calculator can help you rapidly estimate your retirement savings. The total money required, the monthly charges, and your savings and spending habits will all need to be entered. The data may be used to estimate the national pension scheme returns. [B-02] Conclusion Several retirement plans in India, such as the NPS scheme, provide a comfortable and secure old age. They are widely used as part of retirement planning. There are several pension plans from which to choose in India, so it’s important to evaluate your financial needs before committing. There are those of us who put away money every month to ensure we have a comfortable retirement. If you’re willing to decide which retirement plan is the best for you, consider consulting an expert at Piramal Financing House. Even while salaried individuals will have pension income after retirement and those who are self-employed will have savings, choosing a pension plan early in life always proves to be a lifesaver.

08-11-2023

Business Loan

Top Reasons you Need To Know Behind Rejection Of Your Business Loan

Every business, big or small, requires capital assets and expansion. Hence, they look for a business loan, if not initially, then at some point during their expansion phase. Apart from the regular capital requirements for the smooth functioning of the business, a major advantage of the business loan is that it does not affect the ownership of an individual in the business. The stake of the owner remains unaltered. However, availing of a business loan, more so an unsecured business loan is not a piece of cake, and its approval considers multiple parameters, which, if not met, the application can be rejected. To make sure your business loan application process goes through smoothly and is not rejected, conduct thorough research on the prerequisites for the loan and complete the documents accordingly. [B-01] 8 Reasons Why Your Business Loan was Rejected Let’s have a look at some of the major reasons why a business loan might get rejected: Poor Credit Score: Credit Score is the three-digit magic number that ascertains your financial credibility. Hence, a low CIBIL score negatively impacts your loan application. People with CIBIL Scores as low as 650 or lower might face rejection of their business loan application. On the other hand, a CIBIL Score above 700 might fetch you some preferential interest rates. If you are approaching an unsecured business loan, make to check your CIBIL score and ascertain that it is considerably high. Heavy Debt Usage: A business with excessive debt poses a concern on their repayment capability and the lenders usually avoid lending such loans. So, keep your debts in check and pay off whatever is possible before making a fresh application. No Proper Business Plan: To convince the lenders about the purpose of the loan, a proper, well drafted and concrete business plan must be submitted along with the loan application. The absence of an effective business plan or a failure in presenting it to the lenders might lead to a dilemma or confusion regarding the risk associated with loan sanctioning. This might lead to the turning down of the loan application by the lenders. Business Risk: Another major factor that lenders check for, is the kind of business or the industry you are venturing into. Regardless of all your documents and financial credibility, if the lenders are not convinced of the risk associated with your business, they might turn down the loan application. For example, in industries like construction, restaurants, gambling etc. that either have a volatile nature or are considered a vice, the chances of your loan application getting through are few and far between. Also, industries like the transport business and others where economic factors like fuel prices, inflation etc, play a major role in determining the fate of the business, might face a knock-back at the hands of the lender. Absence of Collateral: Collaterals are required with unsecured business loans by many lenders as a security to hedge the lenders’ risk on the loan. Collaterals are valuable assets that are pledged while taking a loan, as a safety measure so that in case of any borrower default, the lender can seize the collateral and recover the loan amount. For the same reason, the collateral value must be equal to or higher than the loan applied for. In cases, where the business is relatively new, with no collateral to pledge for or the assets are already pledged for some other borrowings, the loan application might get rejected. Cash Flow Limitations: New businesses particularly face this problem. Business cash flow is one of the primary factors that the lender considers to judge your loan repayment capability. They require a certain level of monthly or annual business revenue, with the number depending completely on the lender. In cases where you are a fairly new business and have no previous ITRs or less than sufficient P&L statements to show to the lenders, it might be a curb on your loan efforts. To deal with such a situation, you can maintain a good cash flow for whatever time you’ve been in the business. For this, follow proper invoicing, cut down any unnecessary expenses and establish an emergency fund. Missing Documents or Information: Along with the loan application form, certain loan documents are required to be submitted, with complete details mentioned wherever required. Any lapse on this part in the form of incomplete, forged, missing or fake documents or information, might result in an outright rejection of the loan application by the lender. No Strong Purpose for Loan Requirement: For Business Loans, the lenders always require to know the exact reason for the loan requirement. It can be for any purpose like marketing, purchase of new machinery, Research and Developmental purposes or anything. But if the purposes are not presented, not credible enough or not aligned with the business requirements, the lenders might not be convinced to grant you the loan. What to do if my Business Loan gets Rejected? Once you know why your loan application is rejected by the lender, either through self-check before applying or through rejection by the lender, you are better prepared to work on the “misses”. Here are some of the major ways through which you can increase your chances of getting your unsecured loan application approved: Clear your Debts: Improve your debt-to-income ratio and borrowing capacity by clearing off any existing debts. Improve Credit Score: Work on improving your credit score. Maintain a disciplined payment cycle for all accounts receivables and credit card bills, maintain a low credit balance and work on all other factors that help in improving the credit score. [B-02] Apart from the above major factors, work towards improving your financial obligations, have a tax strategy in place, be updated with the latest trends in the market and formulate a proper business plan that shows your growth potential to the lenders. With all these factors in place, it would be much easier for you to get through this process of getting an unsecured business loan sanctioned.

08-11-2023