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How Does an IPO Get Priced?

What is an Initial Public Offering (IPO)? An IPO, or initial public offering is a process by which a private company goes public by selling its stock through the issuing of shares to the general public. It can be a new, young company or an old company. They can go public by getting listed on the NSE (National Stock Exchange of India). Whenever new IPOs come onto the market, the issuer hires an investment bank. It trades the shares on an open market. The company that offers the share is an “issuer.” They can raise equity capital in two ways. One method is to sell its stock to the public. But, the issuer is not obligated to pay back capital to public investors. Another is when shareholders sell their shares to the public without raising any fresh capital. The method by which an analyst ascertains the fair value of a company’s shares is known as an IPO valuation. [B-01] Why does a company enter into an IPO? The private company launches an initial public offering for two main reasons: 1) To raise money for growth 2) To cover debts or losses. Why does an investor need to know about IPO valuation? Knowing the Initial Public Offerings valuation process is essential for investors for two reasons: It tells you about the company’s business prospects and potential for future growth. Examine the financial, income, and cash flow records of a company. Through this, you may easily understand if a company’s stock has strong investor interest. How does a public investor determine if the pricing is right? As an investor, investing in a new company that has not been listed on an exchange before is challenging. But smart public investors try to understand and analyse the issuer by looking at their registration documents and financials. The financials give you an idea of how fair the prices of IPOs are. Read on to know what factors are responsible for determining the price of the Initial Public Offerings. How Does An IPO Get Priced? Listed below are the factors that determine the pricing of an IPO: 1. Demand Demand and supply govern IPO prices. The higher the demand for the shares of the company, the higher the price will be. A company’s value may not always increase if its shares are in high demand. The company will, however, be valued at a greater level. Due to the timing of the IPO and market demand, two identical companies may have different IPO prices. A firm will only conduct an IPO if it believes its stock has strong investor interest. 2. Industry comparisons Comparing different companies listed on the exchanges is important in determining IPO pricing. As new IPOs arrive, they are listed on the exchange. Smart investors compare a company’s IPO pricing with that of its already listed competitors. They can decide not to invest in the IPO if they think it is overpriced and too different from its competitors. If the price is the same as that of competitors, they believe the price is reasonable and thus make an investment. 3. Growth prospects The growth prospects of the issuer play a crucial role in determining the price of an Initial Public Offering. Companies raise capital to fulfil the company’s ambitions and fuel their growth. But if the company’s primary purpose is to recover its debts and losses, the IPO pricing will be quite low. Investors prefer investing in a company with a solid growth story. They will see whether it will expand in the future. The company that showcases its growth has a higher chance of gaining investors. 4. Industry narratives Not all factors determining the IPO price are measurable in numbers. Some factors, like the industry narrative, are beyond that. A company’s story is as important as its revenue projections. A valuation procedure evaluates a company’s potential to transform an industry. And if it is at the forefront of a new business model by producing novel goods or services. For instance, the COVID-19 pandemic renewed interest in the pharmaceutical industry. When a pharmaceutical business launches its IPO, this can raise its valuation. Upcoming IPOs 2022. Now that you know how an IPO is priced, you must be wondering about the upcoming IPOs in 2022 to invest in. Here are the upcoming IPOs in 2022: CompanyStatus.Go Digit. To be announced.Go Air.To be announced.Bajaj Energy. To be announced.OYO.To be announced.KFin Tech.To be announced.Emcure Pharmaceuticals. To be announced. [B-02] To sum up, IPOs are significant stock market events for a reason. You have a chance to make good profits over the long term by investing in the right business. Check the list of upcoming IPOs in 2022. The challenge, though, is to separate the top achievers from the others. Before buying shares, you must compare its IPO prices with those of its competitors. This gives an idea of whether the pricing is appropriate. Besides, always know a company’s growth story, which indicates if it will expand in the future. Visit our website to find more useful and informative blogs.

08-11-2023

Other

Impact of GST on the Working Capital of Small Businesses in India

The introduction of the Goods and Services Tax, also known as the GST, has been one of the most comprehensive and revolutionary tax reforms of independent India. Since the implementation of the national indirect taxation system, there have been both positive and negative effects across the board. The new system comprises four tax brackets, with rates of 5%, 12%, 18%, and 28%, respectively. The Goods and Services Tax (GST), directly related to your working capital loan, may affect the available cash. The term “working capital” is commonly used to refer to this type of funding. Working capital is sometimes called the “oxygen of a business.” This article will discuss how the Goods and Services Tax (GST) could impact your working capital. [B-01] Impact of GST on the Working Capital of Small Businesses in India Stock management The management of inventories has been significantly altered due to the GST. In the past, businesses had to have a network of warehouses in many states to avoid paying cross-border tax charges. Businesses had to spend a lot of working capital loans and time to meet the state’s tax laws and keep track of their numerous warehouses. If the items were sent to a different state, the corporation would be responsible for paying the CST, the octroi, and any other applicable state taxes at that time. The expenses of maintaining the wide network of warehouses owned by the corporation and the costs of adhering to various tax regimes placed significant pressure on the operating capital owned by the company. Since the Goods and Services Tax was implemented, all the corporation has to do to serve demand in all fifty states is maintain four or five strategically located warehouses. In addition, taxes on the goods are not required to be paid at any of the ports of entry along the transportation route. Because there is less of a need for the maintenance of warehouses, businesses can realize significant cost reductions in their working capital. Additionally, it enables unrestricted participation in international commerce. The eradication of tax collection at international crossings reduces the time required for travel. Input Tax Credit The Input Tax Credit (ITC) system was established before the establishment of the GST and could only be used in conjunction with taxable outputs. If the company already paid tax on it, it will not be eligible for the credit. The input tax credit’s potential uses have broadened since the advent of GST. Input tax credits may be claimed. The tax burden and the working capital loan interest rate impact will both be beneficial. Breaking the chain reaction Removing the cascading effects of previous taxes is among the most significant advantages of the GST. In the context of the computation of value-added tax, cascade effects do not meet the criteria for a tax on the product or an excise charge. The first advantage is that cash flow is shielded from the possibility of being disturbed by cascading impacts, which benefits the amount of working capital loan available. Investing in primary materials Before the GST’s introduction, it was widely believed that all businesses would benefit from the new tax system. However, this has yet to be the case. Expenses for running a company vary widely from one sector to another. For instance, if a manufacturing facility imports raw materials from outside, it will now be subject to a GST of 18%. The former slab would have only subjected him to an import duty of 14%. Because of this subsequent tax rise, a company’s working capital loan interest rate will grow. The service industry is also affected, as its tax rate has increased from 15% to 18%. Companies must allocate more working capital loans and revise prices to reflect the new reality. They must also find ways to work capital finance to compensate for the higher tax rates. Tax return due date Experts agree that this facet of the GST has the greatest effect on the company’s liquidity. Items are liable for GST at the time of transfer. However, businesses may only claim a tax rebate when customers pay for their products. The time it takes to sell products once they have been transferred might be substantial. The input tax credit is not available until after a sale. Firms are often forced to take out a working capital loan to compensate for the sharp drop in operational cash caused by this waiting period. Impact of GST on resellers Since the government has set a minimum size for businesses, this cap also applies to e-commerce sites. Therefore, all online businesses must sign up. Operators under the new tax system must refund a portion of the GST tax paid by the seller to the government. Impact of GST on business loans Since the GST was initially implemented, there has been an increase in the overall cost of the working capital loan. The introduction of the GST has resulted in repercussions for all categories of commercial enterprises. Impact of GST on Startups The straightforward procedure for forming a business and the consequences of doing so have been centralized due to the establishment of the GST. The tax legislation stipulates that the federal and state governments are exempt from imposing certain indirect taxes. The initial working capital loan investment required will be lower due to this solution. [B-02] Conclusion: Managing working capital loan, which is becoming increasingly important over time, is one that every company must undertake independently. It is in the best interest of the company to improve its performance. As a direct result of this, the goods and services tax (GST) is a very recent innovation within the context of the new tax regime. For more information, you can ask for help from a well-known institution like Piramal Housing. As a result, the company needs to be able to use the numerous benefits associated with the input tax credit without running the risk of losing this credit. This will inevitably affect working capital.

08-11-2023

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Difference Between ELSS and PPF

Certain saving schemes such as PPF(Public Provident Fund) and ELSS (Equity Linked Saving Schemes) help to enable the benefits of the tax. The article will present a comparative analysis of the investment schemes and help investors select the right one. [B-01] ELSS: A Brief about the Scheme ELSS, an acronym for Equity Linked Savings Scheme, is a type of mutual fund that invests in direct equity and helps in saving up to Rs.1.5 lac in tax rebate. Higher returns in fewer periods and tax rebates have made the scheme highly popular today. The lock-in period under the scheme is three years, which means you can liquidate the investment in three years from its purchase. To get the maximum returns when investing in ELSS funds, you need to keep the investments for a longer period. If you invest in a Systematic Investment Plan, each installation will have a lock-in of three years, which means each installation will have varied maturity dates. Functioning of ELSS Funds ELSS funds can be considered diversified funds involving equity. When you invest in ELSS, you invest in listed companies for a specific objective defined by the fund’s investment objective. People choose stocks across industry sectors and market capitalization, such as Small Caps, Mid Caps, and Large Caps. The funds are made to maximize capital gains over time. The fund manager picks stocks after conducting in-depth market research. It helps in delivering good portfolio returns for the long term. Advantages of ELSS Mutual Fund Here are the advantages you receive when you invest in ELSS mutual funds. Potentially higher returns The scheme offers its investors significantly higher wealth in a medium-to-long-term investment horizon. Since its inception into the market, ELSS has delivered the highest returns in the category of tax-saving products. Earlier data indicates that the scheme generated approximately 11-14% returns in three-year and five-year periods, respectively. SIP Option When you invest in ELSS, you can start investing a low amount of INR 500 per month through a Systematic Investment Plan (SIP). Besides, you can conveniently start and stop the SIP. Investing in ELSS is beneficial, as it offers investors enormous flexibility and convenience with small and regular investments. Better Post-Tax Return Investors can enjoy tax-free returns of up to INR 1 lac while investing in ELSS. Gains over the specified amount attract a nominal tax rate of 10%. Lower tax rates with higher returns ensure investors with the best post-tax returns. PPF: A Brief About The Scheme A PPF account or Public Provident Fund scheme is a traditional and popular scheme. It is a long-term saving-cum-investment product, combining returns, safety, and tax savings. The Finance Ministry’s National Savings Institute opened the PPF scheme to the public in 1968. Since then, it has emerged as a powerful tool for creating long-term wealth for investors. Investors use the scheme to build a corpus for their retirement by putting aside specific capital regularly and over a long period. The scheme offers a 15-year maturity with an added facility to extend the tenure. The attractive interest rates and tax benefits make the scheme the biggest favourite with a small saver. The Functioning of the PPF Account An adult can open a PPF account for themself or a minor for 15 years. The amount deposited in the account ranges between INR 500 and INR 1.5 lac per financial year. You can deposit the amount as a whole or even in instalments. Investors must deposit the amount every financial year during the tenure, and the investor receives an exemption from income tax under section 80C. The minimum amount you must invest in the scheme is INR 500 every financial year to keep the account activated. In certain circumstances, investors fail to pay the amount. In such a scenario, the ministry will discontinue the amount, and you require paying a payment of INR 50 along with the minimum deposit of INR 500 to reactivate it. The PPF interest rate levied is 7.1% per annum to the deposit, compounded annually. You can even take a loan on your account balance. The scheme allows investors to make partial and premature withdrawals on the account balance, subject to certain conditions. After maturity, investors have the option to close the account or extend the tenure of the account with or without making additional investments. Benefits of PPF Account Enlisted are the benefits of having a PPF account: Low-Risk Instrument Since the government guarantees PPF returns and deposits, it is one of the safest investment options nationwide. PPF is a popular investment option even with low returns, as it offers the safety of capital and returns. Tax Benefits PPD investments fall under exempt- exempt- exempt (EEE) category. It means the government does not levy taxes at any state of PPF. An investor wanting to make deposits up to INR 1.5 lakhs can avail of tax benefits under the Income Tax Act 1968. The interest credited every month and the maturity amount are tax-free. Fixed Returns PPF deposits offer fixed returns in the form of interest rates every year. The government fixes the PPF interest rate quarterly. The average return on PPF for the past five years has been approximately 7%. ELSS or PPF: Which Is The Right Choice? Since both schemes help save taxes, investors must invest in the right scheme. When selecting a scheme for investment, investors must consider certain factors like risk appetite, return expectations, and their time horizon. If you are risk-averse and are okay with a 15-year lock-in period, PPF is the best choice. However, ELSS is an excellent option if you can take slightly more risk to earn higher returns. Investing for a longer period helps in reducing the risk. [B-02] Wrap Up Now you should know what the advantages and disadvantages of both the ELSS and the PPF schemes are. But these advantages and disadvantages usually vary depending on what people want. While one person would be seeking a long-term investment, the other must be seeking one that is relatively more immediate (more than 3 years). Due to this, the ways to invest are very different. So, compare these two based on what you need and choose the best one. For more blogs like this, you can visit the Piramal Finance website and explore their products and services.

08-11-2023

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Here Are Some Reasons To Start A SIP Today

Long-term planning is critical for your financial health. It also helps to understand why you wish to invest. Investments are an excellent option since they may bring in money while retaining and growing wealth. If you have a large expenditure coming up, such as college tuition for your children, a down payment on a home, or a once-in-a-lifetime vacation, investing could be an excellent choice. Both the fixed-income and variable-income markets provide excellent prospects. [B-01] But do you believe it’s a wise investment? These five compelling reasons to put your money to work for you will persuade you of the importance of investing. SIP Mutal Funds and How They Function Mutual and exchange-traded funds (ETFs) are two kinds of investment organisations that provide investors with various investing options. SIPs allow investors to stretch out their investments over a longer period and invest less money overall than if they had to put it all in at once. Most SIPs need regular plan payments, often made once a week, once a month, or once every three months. How crucial are SIP investments? If you want to have your finances in order, you need to understand the fundamentals of money and be able to save some. However, many individuals may not gain since they need to know where to invest their funds. Those fortunate enough to have some savings may utilise them to navigate difficult economic and market periods. So, the first advantage of investing is that it allows you to create a safety net. Investing is also beneficial since it allows things to go as planned. Successful people in business can achieve their objectives more quickly. And soon, you’ll be able to live only on passive income. A strong investment portfolio is the outcome of a comprehensive examination of the available possibilities and how they match the investor’s specific profile. This is because all investments contain some degree of uncertainty, from the least risky to the riskiest. It would help if you also considered the time constraints that come with investing. There are occasions when one option is superior to another. So, before making any financial commitments, consider your long-term, medium-term, and short-term objectives. SIP investments are easy. You can do it while sleeping. A SIP allows you to invest a set amount of money regularly without keeping track of the dates or amounts. To begin the plan, you must invest at least INR 500 per month, and the funds must be deposited on the same day each month. After you begin the plan, your payments will be automatically deducted from your bank account and invested until you change the plan or withdraw funds. SIP Mutual Fund Is Low Risk. There isn’t much danger here. If you invest a set amount regularly, you’ll still have some money in the market when it recovers. If it does not return, try something else. And if the market rises, that’s even better because it means you’ll be able to make more money. SIP Plans Are Long Term Savings It’s a great way to put money aside for the future. The more frequently contributions are made, the more money will be saved. Instead of relying on a risky investment strategy, SIPs can help you save consistently and steadily every month for long-term goals such as purchasing a home or funding your retirement. SIP Mutual Fund Is Diverse This allows you to spread out your investments. Unlike manually investing or making lump-sum contributions to a single account with only one or two businesses, a SIP allows you to spread your investments across multiple asset classes, including stocks, bonds, mutual funds, and more (which is what most people do). SIP Investment Don’t Need Market Timing How to Avoid Market Timer Scams When you invest a predetermined amount of money at a predetermined rate, you can ride out the market’s ups and downs without missing out on potential rewards. A “Systematic Investment Plan” (SIP) allows you to save money regularly and earn a return on that money. Most of the time, these programmes necessitate monthly investments for an extended period. You can also invest a lump sum or make monthly payments. A SIP’s goal is to assist investors in building wealth over time by investing in mutual funds or stocks through regular monthly payments without having to guess when the market will rise or fall. A SIP can make it easier for investors to stay involved for extended periods. This increases their chances of earning higher returns on their assets due to compounding interest rates and the other advantages of long-term investing strategies. An Example of a SIP Mutual Fund Investment People who put money into mutual funds 15 years ago have made a lot of money back. Here are a few things to think about. Let’s say you opened a SIP in 1999 and put ₹3,000 into it monthly. Over 15 years, you would have spent about ₹5,40,00. At the same time, your money would be worth about 35,000 rupees. Again, the total cost would be INR 5.4 lakhs. In 15 years, your money will be worth about Rs. 31 lakh more than what you put into it. You can protect yourself from risks using a systematic investment plan, or SIP. Some signs include spending too much money, making snap decisions, taking too many risks, and reacting emotionally or quickly. SIP plans are one of India’s most secure and easy ways to invest in mutual funds. Read this article to learn more about SIP. So, it shouldn’t be a surprise that SIP plans are becoming more and more popular among investors. [B-02] Conclusion SIP mutual funds are the best for everyone to invest in. Get the best SIP to invest plans with Piramal Finance.

08-11-2023

Home Loan

Rental Deposit Loan – Get a Security Deposit for Rental Property

An amount of money is given to a landlord, lender, or seller to ensure that the buyer will maintain the property in a habitable condition during the tenancy. There is no set rule regarding the return of a rental deposit loan; it depends on the deal’s specifics. Furthermore, a security deposit can be used to cover the cost of any necessary repairs to protect the receiver. [B-01] Why You Should Put Down Money to Ensure You Get Paid A security rental deposit loan must be in place before a tenant can move in, or a buyer may close on a property. Often, these amounts are sufficient to cover an entire month’s rent. It is possible to use a tenant’s security deposit to fix or replace broken equipment if the tenant is at fault for the damage. Landlords have the right to deduct the cost of repairs from a renter’s security rental deposit loan if the tenant breaks a window or causes severe structural damage to the building. If the apartment is in good condition when the tenant moves out and no repairs are needed, the landlord will usually return the security rental deposit loan. A tenant’s security rental deposit loan may be used to repair or replace property damaged, lost, or stolen by the renter. Most security deposits are returned to renters upon moving out, provided the property has been kept in “reasonably” good shape, considering normal wear and tear. The usage of security deposits is limited by state restrictions and is often required ahead of the move-in date. Bail in the form of a deposit is expected. The standard amount for a loan for a deposit on a rental house is one month’s rent; however, this amount can be increased at the landlord’s discretion. The escrow security deposit might be insufficient if the property’s rent increases. The security deposit’s value may rise due to interest payments. Still, even if this happens, more than the value of the rental deposit loan will be required to cover the ever-increasing cost of the rent that must be paid every month. If this scenario plays out, the tenant will be held entirely accountable for the increased total amount of the refundable rental deposit loan, which will be put squarely on their shoulders. In addition, the renter will be required to pay the additional amount. While loans for deposits on rental houses are not considered taxable income, they are treated as trust funds in many jurisdictions. Any rent not yet due from the security rental deposit loan must be recorded as advance rent and taxed when received. 1. Familiarise yourself with your state’s rental and security deposit policies. Rent, security deposits, and relocation costs are only some topics governed by these established norms between landlords and tenants. For instance, if a tenant is late in paying rent, late charge caps and grace periods may be mandated by local law. In some countries, the security deposit must be kept in an interest-bearing account and supported by a security deposit receipt. 2. Get down with the tenant and review the rent and security deposit. Tenants should know immediately if they will have to fork out a security rental deposit loan and the first month’s rent to secure their property. Therefore, consumers may plan for the financial impact of relocating by having accurate information at their fingertips. In most countries, it is mandatory by law for a lease to specify the monthly rent and security deposit. 3. Create a website for renters to make payments There are several options for accepting rent payments online, but it’s important to pick a system that was made with that goal in mind. Avail can be used in place of a property manager to handle the rent collection procedure for several units. 4. You should put your security deposit in a separate envelope from your monthly rent. When rent and rental deposit loans are treated as separate transactions, keeping track of both is much easier. If the tenant has paid the security deposit but has yet to receive the first month’s payment, record that fact here. The process of tracking rent payments and communicating with tenants is simplified. States have strict regulations governing the handling of rental deposit loans. Although you should probably have your tenants’ security deposits deposited into a separate account from the rest of your rent payments, it’s still in everyone’s best interest to have the deposits collected in a way that’s easy for you (not combined with your assets). If you get checks regularly, this will facilitate their deposit into the correct account. Funds may be sent to the correct account if rent is collected digitally. 5. The first month’s rent is payable within five days of signing the lease. Once the lease is signed, the landlord should collect the security deposit before handing over the keys to ensure the tenant has read and agreed to the lease terms. Rent and rental deposit loans should only be collected from tenants once the lease is fully executed. 6. If necessary, determine the rent proportion. If the rental term is less than one month, the rent will be adjusted accordingly (either at the start or end of the lease). For example, if your lease starts on January 15 and ends on December 31, you’ll need to figure out the prorated rent for that period. For example, if your lease begins on January 1 and ends on December 15, you would calculate the prorated rent from January 1 through December 15. [B-02] Conclusion: The tenant’s rental deposit loan can be used to mend or replace broken, misplaced, or stolen goods. When renters vacate the property in “relatively” decent shape, accounting for reasonable wear and tear, the bulk of their security deposits is refunded. Security deposits, typically needed before move-in, are subject to limits set by state law. If you want to know more regarding loans, do not hesitate to consult the financial experts at Piramal Housing Finance. They will assist you to meet your requirements.

08-11-2023

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Pradhan Mantri Mudra Yojana (PMAY) Scheme For Women

For women who want to start a business venture and are in need of funding, there are various options including the Pradhan Mantri Mudra Yojana scheme for women who are citizens of India. The Government of India has launched several programmes to help and support ambitious women who want to start their own businesses. This article provides information on different aspects of the scheme including who is eligible and how an online application can be made. [B-01] What Is The Pradhan Mantri Yojana Scheme? In 2015, the Government of India started the Pradhan Mantri Mudra Yojana scheme to help small businesses grow. Through this programme, both for-profit and non-profit organisations can apply for loans up to Rs. 10 lakh to get their businesses started. The Pradhan Mantri Mudra Yojana schemehas wide support throughout the country. Its goal is to help small businesses in India get access to low-interest loans. The Pradhan Mantri Mudra Yojana scheme works to bring businesses into the formal banking system and “finance the unfunded.” The application process is easy and people can fill out an online application form for a Pradhan Mantri Mudra Yojana loan or apply through their local bank and use the EMI calculator to get started. What Is The Mudra Yojana Scheme For Women? The scheme offers loan principals between Rs. 50,000 and Rs. 10 lakh to women who want to start or expand their businesses. This loan is provided in three distinct types: Shishu: This is a loan of up to Rs. 50,000 and is available for businesses that are just getting started. Kishore: This is a loan that has a lending range of Rs. 50,000 to 500,000 for well-established businesses in need of expansion capital. Tarun: This is a loan for an amount between Rs. 5,00,001 and Rs. 10 lakh and is available for established firms that meet the loan eligibility requirements. Organisations Eligible To Issue Loans Through Pradhan Mantri Mudra Yojana Scheme These are the organisations that are eligible to issue loans for the Pradhan Mantri Mudra Yojana scheme: RRBs or Railway Recruitment Boards (in charge of hiring railway employees) Institutions that provide microloans (MFIs) Corporate banks NBFCs Microlending institutions Businesses Eligible For Loans Through Pradhan Mantri Mudra Yojana These are the businesses that are eligible for loans through the Pradhan Mantri Mudra Yojana scheme: Business vendors Shopkeepers Agriculture sector The food production industry Handicraftsman Small-scale manufacturers Self-employed entrepreneurs Restorative and repair shops Service-based businesses Truck drivers Objectives Of Pradhan Mantri Mudra Yojana The Pradhan Mantri Mudra Yojana scheme loans can be used for a wide range of purposes that contribute to the development of the economy and the creation of new jobs. The most common uses for a Pradhan Mantri Mudra Yojana loan are as follows: Equipment financing for micro and small businesses Business loans for retailers, wholesalers, and other service sector enterprises Card-based working capital loan finance for transport vehicles Operations like poultry farming, beekeeping, pisciculture, etc. For those who use tractors, tillers and bicycles in their businesses Why Can Apply For Pradhan Mantri Mudra Yojana Women from various socio-economic backgrounds are encouraged to apply for loans under the Pradhan Mantri Mudra Yojana scheme. These are the requirements women must fulfil to be eligible to apply for loans: Female entrepreneurs in charge of production or manufacturing operations, including weavers, crafters, artisans, and more. Female entrepreneurs who want to develop or improve enterprises that provide services such as tailoring, phone repair, photocopying, auto repair and servicing facilities, beauty salon services, and more. Pradhan Mantri Mudra Yojana Eligibility Requirements To be eligible for a Pradhan Mantri Mudra Yojana loan, applicants must meet these requirements: The applicant must be between the ages of 18 and 65. The applicant should be equipped with the abilities needed to carry out the suggested business plan. The applicant must be creating or funding a non-farm income-producing enterprise in the manufacturing, trading or service industries. The applicant must have a solid repayment record without any loan defaults. Pradhan Mantri Mudra Yojana Documents The following documents are required when applying for a Pradhan Mantri Mudra Yojana loan: Completed application form Passport-sized photos KYC documents of the applicant and the co-applicant such as utility bills (water and electricity), passport, voter ID, Aadhaar card, driver’s licence or PAN card Proof of special category membership, such as SC / ST / OBC / minority (if applicable) Recent 6-month bank statement Business address and tenure documentation (if necessary) Other paperwork required by the bank or NBFC It should be noted that the loan application under the Pradhan Mantri Mudra Yojana scheme is the same for both Shishu and Kishore loans. But there is a different application form for the Tarun loan. To apply for loans, applicants can either make an online application through their bank’s website or apply in person at their nearest bank branch or other lending institution. Other Schemes In addition to the Pradhan Mantri Mudra Yojana scheme, the Government of India also has other initiatives such as Pradhan Mantri Awas Yojana (PMAY) to make affordable housing available to the urban poor. Another element of this scheme is the Pradhan Mantri Awas Yojana (PMAY) Gramin which follows the same concept but is for the rural poor. [B-02] Conclusion For women who want to start or expand their small or medium-sized businesses, there are three types of loans that are available in the Pradhan Mantri Mudra Yojana scheme which has quick and easy online application options. Once applicants have done their research and prepared their documents, they can either apply online or visit the bank (or other financial institution) closest to them. For more articles like this one with details on loans for women who want to start a new business or grow an existing one, Piramal Finance has more information and guidance on the financial aspects of business loans and more!

08-11-2023

Other

What Is Stamp Duty And How It Works: All You Need To Know

What is Stamp Duty? While purchasing or selling property, transferring possession is not the only thing to consider. It requires paperwork and stamp duty. Despite being only a small step in the transfer process, stamp duty is an important step required for a successful and legal sale of a property. In simple terms, stamp duty is a tax on the sale of real estate. The imposition of stamp duty is a state-bound act and varies between states. The central government also has the power to impose stamp duties on various instruments. In exchange for property, both the seller and buyer need to pay the stamp duty. The Indian Stamp Duty Act, of 1899 governs the rate and collection of stamp duty. [B-01] Importance of Stamp Duty Stamp duty is important for agreements such as gift deeds, mortgage deeds, partition deeds, license deeds, lease deeds, and so on. These agreements accept the transfer by the original nomination in a cooperative housing society. Who is Liable for Stamp Duty? Stamp duty is paid before the document’s execution date or on such a document’s execution date. Execution of documents means putting signatures on instruments by the parties to the document. In the absence of any kind of agreement, the buyer has to pay stamp duty. In the case of property exchange, both parties bear the stamp duty cost equally. Stamp Duty Rate State-by-state registration costs are uniformly set in a few countries. Some states also impose a fixed fee for the registration of real estate and other properties. Maharashtra and Haryana are two of these states. Stamp duty is a one-time payment made by Section 3 of the Indian Stamp Duty Act, of 1899. Piramal Finance charges a stamp duty on actuals. Actuals refer to the market value of the property, including any additional applicable taxes. Balancing the Transfer of Home Loans Every bank has a different process when it comes to the balance transfer of home loans. On the other hand, various aspects remain universal for all banks. You can visit the bank either online or physically and check the terms and conditions. It is essential to understand the home loan charges and any documentation. You will then need to submit an application form with the current loan details and pay the required fees. How Should One Sign an Instrument That is Affixed With Adhesive Stamping? According to Section 12’s provisions, any person that has a stamp can cancel the order system by writing a cross on their name or initials. If stamps from another system are not cancelled in the manner specified in the report, they are considered unstamped. Considerations Before Transferring a Home Loan Consider the following things before transferring a home loan: Home loan balance transfer charges: Home loan charges depend upon new lenders that decide to complete the transfer. Documentation Needed: Another aspect to consider when going ahead with a loan balance transfer is the documentation required to complete the process. The home loan transfer documents can vary between banks. They can also vary depending on the home loan details, including collateral, loan amount, and other aspects. Lender Credibility: By understanding what credibility is, you can be aware of the benefits and risks of a home loan transfer. Verification and understanding the credibility of new lenders are essential to ensure that your home loan transfer is seamless and quick. Calculation of Stamp Duty Stamp duty varies from one state to another. When any property or flat is transferred by a nominee to the legal owner, the document or instrument that is transferred has to be stamped according to the value of the market. Several parameters must be considered when determining stamp duty on a property. Included in the stamp duty are the registration charges, which are the total area of construction for individual homes as well as surrounding areas, in the case of flats. The government determines and takes into account the minimum value at which a plot, property, or house must be registered. Registration charges and stamp duty are directly proportional to the property’s market value. Stamp duty charges are also affected by whether the property is urban or rural. State and central taxes are also included in your stamp duty. Factors That Determine Stamp Duty If you are looking for a house, stamp duty charges need to be taken into account. Calculate your stamp duty through reputable institutions such as PCHF. This will help you get an idea of the amount you need to pay. The stamp duty shall be calculated based on non-judicial stamp paper and the prevailing rate for the same. Another aspect you need to keep in mind is the property value. The value of the property determines the stamp duty that shall be charged. [B-02] The Bottom Line Stamp duty is an important thing to keep in mind while transferring property. It is a legal document stating that you have registered as a property owner. Hence, make sure you pay your stamp duty on time to avoid any penalty charges. To read more such blogs, head to the Piramal Finance website and learn about other loan options.

08-11-2023

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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