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Personal Loan

Why a Personal Loan is Better Than Borrowing From Friends or Family

In need of some quick cash? You might be tempted to ask your friends or family for help, but consider applying for a personal loan before you do. While it can be tempting to borrow from friends or family, that doesn’t make it the right financial decision. Read on. [B-01] Why personal loans? People who wish to borrow money to pay for personal costs can apply for personal loans from lenders like banks and NBFCs. These costs could include a wide range of things, such as a new car, house improvements, a wedding, higher education, a trip, etc. Lenders provide personal loans to people so they can raise money right away without having to go through a drawn-out application process. Lenders offer personal loans at an interest rate they determine depending on the loan amount and the loan tenure selected by the borrower, similar to other loan types. Once you’ve applied for a personal loan, you have a legal obligation to repay the lender the loan’s principal and interest during the loan’s term. Here are some advantages if you apply for a personal loan instead of borrowing money from friends or family- A personal loan has a set repayment schedule A personal loan often has a set repayment schedule, meaning you know exactly when and how much you’ll have to repay each month. Plus, unlike borrowing from friends or family, if your circumstances change and you can’t make payments for whatever reason (e.g., illness), your lender will work with you to find an alternative repayment plan that works for both of you. If you apply for a personal loan, you get more flexibility with payment options, like biweekly payments that allow you to pay less each month. A personal loan can help improve your credit score A personal loan can help improve your credit score by allowing you to demonstrate that you can responsibly manage debt. Plus, if you have good credit, you can get a lower interest rate than borrowing from friends or family. When you apply for a personal loan, the terms are often more straightforward to understand than when you borrow from friends or family; for example, the amount of interest you’ll pay throughout the loan will be clear. Finally, many lenders offer flexible repayment options on personal loans, whereas they may not be as generous about repayment plans when borrowing from friends or family. A personal loan can be used for any purpose You can use a personal loan for any purpose, including major expenses like starting a new business, buying a car, paying college tuition, or even consolidating high-interest debt. Unlike borrowing from friends and family, the lender won’t care if you want to use the money for something other than your emergency fund—you’ll still get the same low rates and flexible repayment terms. With most lenders, you don’t need perfect credit to apply for a personal loan—as long as you have some income and an active checking account, there are plenty of options available. You can shop around for the best personal loan rates For many people, borrowing money from friends or family to get them out of financial trouble seems like the easiest option. However, there are several drawbacks to this type of borrowing. For example, the interest rates can be much higher than what would be offered when you apply for a personal loan. You may be in even more debt as your loved ones expect you to repay them quickly. Borrowers also have access to competitive interest rates with some companies, which means that their monthly payments are smaller, making it easier for them to manage their finances when paying back the debt. You don’t have to worry about hurting relationships While it’s tempting to borrow money from friends and family, the reality is that if you can’t repay what you owe, your relationship could be damaged. When you apply for a personal loan, the lender will look out for your interests and offer different repayment options and rates based on your situation. Plus, if you decide to refinance your debt with another lender, later on, it won’t matter how good your terms were with the original lender since they don’t share this information with other companies. Additionally, unlike borrowing from friends or family, most lenders will have an in-house attorney, so you know there’ll be someone to answer all your legal questions about the process if needed. You can get a personal loan without collateral A personal loan can be the perfect way to borrow money if you need more than what you have in savings but don’t want to borrow from friends and family who may ask for collateral. If you have good credit, it’s even possible to apply for a personal loan without having any collateral. That makes this type of loan ideal for people just starting out because they can establish their credit history before asking friends or family members to lend them money. With a personal loan, you must make your monthly payments on time, and you’ll build up your credit over time. You might even find that a bank will approve you for an auto loan once your score has improved significantly. [B-02] Conclusion figuring out Borrowing money from friends or family can be very difficult for both parties. The borrower usually feels guilty, and the lender feels taken advantage of. So if you need help figuring out what to do when you need money, try applying for a personal loan instead. A personal loan lets you pay back your debt over a longer period so that you don’t have to worry about making payments on your friend’s schedule. If you apply for a personal loan, you’ll also get great interest rates and low fees, saving you money in the long run, along with access to more flexible repayment plans with better terms. For more information and customized assistance, head over to Piramal Finance.

08-11-2023

Home Loan

How Many Times Can Prepayment Be Done for Home Loan?

The idea of being in deep debt is repugnant to the vast majority of us. If you take out a loan, you probably want to pay it back as soon as possible, preferably before it’s due. But, a home loan is not the same as a credit card or an auto loan. Yet, there are perks to having a house loan that could outweigh prepayment costs. Home loans have a prepayment option. This option allows you to pay back the principal amount any time before the end of the tenure. Prepayment is typically opted for by consumers who have financial flexibility. We’re sure you have many questions about home loan prepayments. In this article, we’ll talk about home loan prepayment and more: [B-01] How Many Times Can Prepayment for Home Loans Be Done? Generally, you can prepay as many times as you want. But, this feature varies from bank to bank, and some banks only allow a certain prepayment limit. Should You Prepay Your Home Loan? Based on your financial situation, prepaying your house loan may be a viable option. If you have an unexpected bonus or inheritance, you can use the money to pay off your home loan early. Banks or NBFCs do not assess prepayment penalties for floating-rate home loans. There are situations where prepayment of a home loan might save you money. For example, when the loan amount or the interest rate charged by the lending institution is high. For example, suppose your interest rate is lower than average, and you’re eligible for deductions. In that case, you might want to keep the loan. Who Is Eligible for a Prepayment for a Home Loan? All borrowers are eligible for prepayment for home loans as long as their bank allows them. You may want to apply for a home loan that allows prepayment if you want to save money in the long run. Banks often do not encourage prepayment. That’s because it is detrimental to their business. If you pay off a loan early, the bank will charge you more to process the assets through the credit system. So, you may have to pay a fee to the bank if you want to pre-close on your loan. You have the right to foreclose on all or part of your loan if it provides you with a long-term profit. For example, if you save money on interest each month after paying the fine, it may be worthwhile to foreclose on the loan. How Are Prepayment Charges Calculated? Loans with a floating interest rate don’t need to pay prepayment fees, as per RBI standards. A prepayment is an option for such borrowers. That’s because they can make payments whenever they have money left over. Prepayment fees on fixed-rate home loans are usually rather low. However, when paying off a home loan early, you may be required to pay a fee equal to a tiny percentage of the principal balance. How To Prepay a Home Loan? Your home loan prepayment options are flexible. You can either pay off some of your debts or make a down payment on the home loan early. You can do either one or both simultaneously. Start small and gradually increase your prepayments Begin with a modest prepayment at the outset of the loan. And, gradually increasing it annually at a steady rate is one strategy for paying off a home loan early. To do this, just prepay some or all your annual expenses by saving aside money regularly. Fixed advance payment You can do this in several ways, one of which is to prepay your principal a set amount each year. Also to your EMI payments, you must do this. Then, budget your yearly expenses and put away a fixed amount regularly. Put this toward a prepayment of your home loan’s principal. Increased EMI Another strategy is to pay more than your calculated EMI. The monthly payment should be slightly greater than the home loan EMI. This will help a great deal in paying down your debt. Full repayment Paying off your debt early is an option. But, only if your financial condition has improved. Or, you have come into possession of a large chunk of money. But, you may incur costs if you prepay your home loan. Benefits of Paying off a Home Loan Before Time Clearing a home loan is referred to as prepayment in the finance world. You’ll be able to reduce your interest payments, as we mentioned before. Nonetheless, as you’ll discover later, there’s more to the story. You can significantly reduce interest obligations The typical length of a home loan is very long — around 20 years. Hence, the borrower’s interest could add up to a sizable sum. The interest paid can be significantly larger than the principal amount borrowed. That’s if your home loan interest rate exceeds the average market rate. Yet, if you can, you must prepay your home loan to reduce the total interest you’ll pay. If you need help comprehending, consider the following illustration. Gives you the freedom to consider other scenarios Your retirement fund will have greater room as the debt gets reduced. We tend to be very much in the here and now, with little thought given to the long term. Also, you might not have enough time to save for retirement if you let your home loan continue until you pay it off. Then, prepare to repay the debt sooner than you had originally anticipated. When you finally call it a career, you will no longer bring in any money. Moreover, retirement can be challenging if you haven’t saved enough money. You can get more financing opportunities You can often take on extra, smaller loans when you pay a home loan early. Fewer loan providers will work with you if you already have a home loan. Loan amounts tend to be bigger when borrowers have fewer or no current debt commitments. [B-02] Conclusion You can save on interest by prepayment of your home loan. But, doing so by liquidating your investments or savings for emergencies can be risky. Don’t spend any surplus funds you have for house loan repayment. Instead, use them to invest in fixed-income products such as bonds or fixed deposits. You can also use funds that haven’t been designated for a certain expenditure. Looking for a personal loan to fund your financial needs? Apply for a personal loan with Piramal Finance and get up to Rs. 10 Lakhs!

08-11-2023

Know More

PPF: What Are The PPF Benefits And Features

PPF, or Public Provident Fund, is one of India’s most popular investment schemes for people of all ages. PPF not only gives a good rate of interest that allows your money to grow quickly but is also safe. This is because PPF comes with a government guarantee, where the return on investments in PPF is assured. With safety and fast growth, PPF offers investors the best of both worlds. [B-01] What is PPF? PPF, or Public Provident Fund, was introduced in India in 1968. For 54 years, PPF has been the go-to savings-and-tax-saving instrument of choice for millions of Indians. The Government of India revises PPF interest rates every year, and usually, the interest rate on PPF post office accounts is higher than on fixed deposits (FDs). The rate of interest offered on PPF accounts right now is 7.1%. And the minimum lock-in period for a PPF account is 15 years. Benefits of PPF PPF is a favourite savings instrument because it affords the following benefits: For Everyone: There is a cap on the maximum amount of money you can invest in PPF (Rs 1.5 lakh). The minimum amount for PPF is so low that almost everyone can afford it. The lowest amount you can invest in your PPF is only Rs. 500 per year. Emergency-friendly: Need urgent money? Maybe an illness at home or an expense has caught you by surprise. You can count on your PPF account to tide through the crisis. You can avail of loans against your PPF account from the 3rd financial year to the 6th financial year. It’s your money – make it large or small: PPF also allows you to draw money from the seventh financial year. Tax-saver: The deposit you make in your PPF account, with a cap of Rs 1.5 lakh a year, qualifies for deduction under Section 80-C of the Income Tax Act. Further, interest earned on your PPF investment is free from income tax under Section 10 of the I-T Act. Very safe: You don’t need to be told again that mutual fund investments are subject to market risks. The same is the case with most other options that offer similar returns. But not your PPF account. Not only do PPF accounts come with a government guarantee, but the amount in your PPF account also cannot be attached under any order or decree by a court of law. PPF Features Now that you know the benefits of having a PPF post office account, here’s a glance at PPF features: PPF interest rates How is the PPF interest rate decided? The Government of India decides on the rate of interest on PPF investments every quarter. The PPF interest rate for the third quarter of the 2022-23 financial year (October 1 to December 31, 2022) is 7.1%. How is PPF interest calculated? PPF interest is calculated based on the lowest PPF balance in the account after the 5th day of a month to the final day of the month. When is PPF interest paid out? Interest accrued on PPF investments will be credited to your PPF account at the end of every financial year. PPF investments How much money do I need to open a PPF post office account? You can open a PPF account with a minimum yearly investment of Rs 500 only. Is there a cap on the amount of money I can invest in PPF? Yes. You can invest a maximum of Rs 1.5 lakh in your PPF account. PPF tax saving How much tax can I save by opening a PPF account? The money you invest in your PPF account is exempt from Income Tax under Section 80-C of the Income Tax Act. Therefore, the entire amount is exempt from income tax if you invest a maximum of Rs. 1.50 lakhs, in your PPF account. Moreover, the interest earned from your PPF investment is also exempt from income tax. PPF lock-in period and withdrawal How long do I have to keep my money in a PPF account? The minimum lock-in period for a PPF account is 15 years. Additionally, you can extend your PPF account for as long as you want in blocks of 5 years. Can I withdraw my PPF money before 15 years? Yes. But only in case of emergencies. You can withdraw money from your PPF account from the 7th financial year since you opened your PPF account. What if I need my PPF money before 7 years? You will not be able to withdraw money from the year PPF account before the 7th financial year since you opened the account. However, you will be able to obtain loans against your PPF account from the 3rd to the 6th financial year from when you opened your account. PPF Pension There is some confusion in the investment market about whether PPF provides pensions to account holders. If you are confused, please know that PPF does not provide any pensions to investors. PPF, or Public Provident Fund, is a government-backed savings instrument only. It is not a pension or retirement-specific vehicle. How to open a PPF account? Now that you know PPF benefits and various features of opening a PPF account, here’s a glance at how to open a PPF account. PPF accounts can be opened at post offices, nationalized banks, and major private banks. Documents required to open a PPF account: PPF account opening form. The form can be obtained from any bank authorized to open a PPF account. KYC documents: Aadhaar, voter ID card or driving license. Address proof. PAN Card. Passport-sized photograph. Nomination form – Form E. This can also be obtained from the bank. With all these documents in order, you can submit your form, and you now have a PPF account. [B-02] Conclusion PPF is one of the best saving options for risk-free investors. People widely use it to create a retirement corpus. If you want to learn more about PPF and its benefits, visit Piramal Finance. They have some great blogs and articles on PPF to help you acquire updated financial skills.

08-11-2023

Personal Loan

What Is the Eligibility for a 5 Lakh Personal Loan?

The number of financial institutions that offer personal loans has increased. The terms and conditions with which loans are given have also become more strict. Due to growing scrutiny, banks have mandated personal loan eligibility requirements. Every applicant has to meet these before they become eligible for a loan. Eligibility is the first step, so knowing how to qualify for a loan can make or break your desire to take one out. In this article, you will read about personal loan eligibility. It also discusses the qualifying criteria for a five lakh personal loan. [B-01] What Is a Personal Loan? A personal loan is a loan sought by an individual from a financial institution for various purposes. These include paying old debt, clearing medical bills, or buying furniture. For example, an entrepreneur can take a personal loan to finance their expansion. A lender will sanction the fund after checking your loan eligibility. There are many types of personal loans. You may apply for a personal loan for your vehicle, home renovation, education, etc. Check Personal Loan Eligibility You can apply for a personal loan if you are a resident of India and above 18 years of age. You should also have a permanent source of income. These are the most basic personal loan eligibility requirements prescribed by every lender. The loan amount you are eligible to get is limited to Rs 5 lakhs. Other guidelines should be kept in mind while applying for a loan. Lenders have also mandated personal loan eligibility requirements like identity and address proof. Documents Needed for a Personal Loan The documents sought by the lender will be submitted along with the application. Here are documents that will help meet the personal loan eligibility set by lenders: Identity Proofs: The applicant’s name should be displayed on the document. You can submit any government-issued photo ID like an Aadhaar or driving license. Age Proof: If the documents are in the applicant’s name, the age proofs are applicable. One can use Aadhaar, Voter ID, Driving Licence, etc. Residential Proof: The address in the application shall not be rented or leased. Although, in some cases, the bank may allow you to use it. Employment Proof: You should prove that you have a stable and regular source of income. It is needed because you will use this income’s funds to repay the loan. Loan Purpose: You can apply for a loan for any purpose. Some lenders may ask you to submit a letter along with your application. The letter must outline the purpose for which you seek the loan and how you plan to repay it. Process of Applying for a Personal Loan A person who wants to take a loan must fill out an application form. It can be obtained from the bank or an NBFC where the loan is offered. On filling out the form, the applicant must mention all details. These include the loan amount, loan purpose, repayment period, and interest rate. The documents mentioned in the personal loan eligibility section must also be provided. If the loan is approved, the interest rate will be mentioned on the form. After submitting the form, the loan application is transferred to the loan department. The loan officer sees the application form and decides if the applicant should be given the loan. The loan officer has the authority to approve or reject the application. The decision will be based on personal loan eligibility. They would also decide the terms and conditions of the loan. When the loan is approved, a formal letter confirming the same is sent to the address in the application. Interest Rate for a Personal Loan in India The type of loan you are taking will determine the interest rate you will have to pay. There are two types of personal loans available in India. One is an unsecured loan, and the other is a secured loan. An unsecured loan has no collateral attached to it, while a secured loan has some asset (such as a car loan) as a security. While applying for a loan, you should decide which type of loan you want. An unsecured personal loan has an interest rate of above 10 per cent. A secured loan has an interest rate of 8 to 10 per cent. Repayment Schedule of Personal Loan The repayment schedule of a loan would depend on the amount you take and the repayment period you choose. The repayment term for a personal loan ranges from one to 15 years. Options to extend it beyond that exist in some loan programs and with certain lenders. The lender would decide the repayment schedule of a loan. It will be based on the borrower’s repayment ability. The repayment will be in the form of EMIs spread over a few years, as agreed between you and the lender. Most personal loans come with a minimum tenure of one year. Banks insist on having this minimum term as they want to make sure that they earn interest. Moreover, in some cases, you may even have to pay the penalty if you are paying before the stipulated time. Doing so causes a loss of interest to the bank. [B-02] Conclusion Now that you know what a personal loan is, who is eligible for one, and how to apply for one, you are ready to find the best deal on a loan. Before applying for a loan, make sure you know the interest rate. Other terms and conditions of the loan must also be read. You must also check the personal loan eligibility details. That way, you can make a better decision about whether or not to take out a loan. A good way to do this is to find a lender with flexible loan programs. It includes Piramal Finance, known for excellent services and flexible loan terms.

08-11-2023

Investment

Different Pros And Cons Of Investing In Mutual Funds

A mutual fund is a type of investment option with a bunch of funds collected from many investors to invest in various securities. These securities can be shares, bonds, and other assets. Many types of mutual funds are available to investors, each with a unique objective, strategy, and risk profile. Some types are index, equity, fixed-income, balanced, and money market funds. Investors can invest in mutual fund shares directly from a Demat account or through a broker. The price of a mutual fund share is based on the fund’s net asset value (NAV). This value is calculated at the end of each trading day. When choosing a mutual fund, you must consider your goals, risk tolerance, and time period. Before deciding, you should also research the fund’s performance, fees, and expenses. There are different mutual funds available to investors in India. Some of the best mutual funds to invest in India are HDFC Equity Fund, ICICI Prudential Bluechip Fund, and SBI Magnum Global Fund. [B-01] Advantages of Mutual Funds Mutual funds offer a variety of benefits, including professional management, diversification, and affordability. Some of the notable benefits are : 1. Managed by experts a team of experienced fund managers who manage mutual funds. They invest your money in other options like stocks and bonds. This helps spread out your risk. For example, if you have one stock that goes down, you might lose a lot of money. But if you have a bunch of stocks and one goes down, you might not lose as much money. This means you can be safer and make more money. 2. Diversified risks mutual funds are also diversified, which spreads your risk across investment options. This can improve your overall returns and minimises the risk. 3. Low minimum investement Mutual funds are also an affordable investment option. There are many funds available with low minimum investment rules. This makes them a great choice for investors with limited resources. 4. Numerous variants There are several different mutual funds available in the market. So it is vital to choose the right one for you. Some factors to consider include your goals, risk tolerance, and time period. 5. Allows bulk purchase Mutual funds also offer economies of scale. The larger size of a mutual fund allows it to buy securities in bulk, which reduces transaction costs. This benefit is passed on to shareholders through lower expense ratios. 6. Dividend Reinvestment Dividends and other interest income sources can be reinvested into the mutual fund to help it grow. This is a great way to keep your investment growing without spending additional money. The best mutual funds in India offer a variety of benefits and can be a great addition to your investment portfolio. Disadvantages of Mutual Funds Mutual funds are often touted as a great investment option, but there are some drawbacks to consider before investing. Below are the major ones : 1. Expensive Firstly, mutual funds can involve certain fees during the cash-out process that get deducted from the overall returns. Every year the mutual fund asks for a management fee to manage the mutual fund. There can be other charges that the fund house may levy from time to time. 2. Risk Involved Mutual funds are subject to market risk. This means that if you buy a mutual fund, the value of the money you put in can go up or down. This is called market risk. The market risk is that you might lose money if you buy a mutual fund. But there is no guarantee that you will lose money if you buy a mutual fund. If you are okay with taking on some risk, a mutual fund could still be a good investment. 3. Can lead to penalties Mutual funds can be non-redeemable for a certain period. This means you may have to pay the penalty if you need to cash out your investment before the fund’s maturity date. There is an exit load of 1% that fund houses levy on any withdrawals during the first year. This holds for ELSS schemes. These are tax-saving schemes that have a lock-in period of one year. 4. Tax inefficiency Mutual funds have to pay out capital gains to their investors. This is because of all the trades the fund makes during the year. The fund will make money from buying and selling stocks, and paying out capital gains is a tax event. 5. Needs professional help Finally, mutual funds can be difficult to understand and select. You may need professional help to choose the right fund for your needs. While mutual funds can be a great option, there are some things to keep in mind before investing. Make sure you learn all about the fees and risks linked with it. It can also be helpful to seek professional help to ensure you choose the right funds. [B-02] Conclusion Mutual funds are a good investment choice in India. The reasons are that they are easy to buy and sell, have a low minimum investment amount, and provide the option of choosing your investment portfolio. If you think investing in mutual funds is a good idea, you are on the right track! Now that you have the details about investing in mutual funds, you can decide whether or not to invest in mutual funds. If you want to learn more about mutual funds or how to invest in mutual funds, contact Piramal Finance. Visit its website to find out more about its offerings and services!

08-11-2023

Business Loan

Loan Against Property To Start Your Business

Business owners may readily apply for a loan against property on the websites of financial institutions. Loan against property or real estate has been going on for years. Many people who want to start a business opt for this. It helps people get funding. People who have startups also go for this. They usually take a loan against their house and then run a company with the funding. These loans are also called loans against collateral. They are taken up by people who have property. Learn more about this subject through the article given below. [B-01] Top 5 Reasons Why Loan Against Property is Vital to Start a Business Starting a new business entails a huge cost. So, securing a loan against property is an attractive option. Here are a few reasons why getting a loan against property for business is good. 1. Basic Requirements for Participation In addition to the ease of applying for loans against real estate, the documents you need for approval are simple. You need a source of finance which is quick and simple to access. This is because you will incur many costs while starting a business. 2. Application Flexibility Setting up new business costs includes a lot of things. This includes renting or buying office space, buying office furniture and supplies, advertising, recruiting employees, etc. A loan against property secured by the new company’s property can be quickly redirected to meet the most immediate need. Starting a business might be much less complicated when a lender is not involved. 3. Flexible repayment schedule: Maximising profits to repay a debt with a more forgiving repayment plan will be less important. A loan against property offers you to schedule repayment for up to 20 years. This helps you focus on business growth without financial stress. 4. Lowest interest level You’ll have a far lower debt-to-income ratio because your lender provides you with a loan against property. The interest rates associated with a loan against property for company owners are quite low compared to other loan types like personal and business loans. 5. The Highest and Best Use of Property Although real estate is a great long-term investment, there are ways to maximize your returns. You can qualify for a larger loan at a cheaper interest rate if you use the property as collateral. Launching a firm requires many things, which can increase costs for first-time entrepreneurs. A loan against your home will allow you to accomplish all this without serious debt. What are the steps to getting a company loan backed by real estate? Business owners may readily apply for a loan against property on the websites of financial institutions. Most loan applications result in an instantaneous deposit of borrowed cash. Step 1: Your name, home address, birth date, and other personal details will need to be entered into an online form. Step 2: After filling out the first application, you will be asked to provide details about your income to be offered suitable loan options based on your credit history. Step 3: After a loan application is submitted, a financial institution representative will contact the borrower to collect documentation verifying the borrower’s identity and property. When these steps have been taken care of, you will find out if your application for a loan against property secured by real estate has been granted. What is a startup loan secured by real estate? There are several differences between a personal loan and a loan against property secured by real estate, which can benefit company owners. Read on for more about the loan’s characteristics and how they could aid in the start of your firm. Commercial property equity loans are cheaper than unsecured loans for business purposes. Considering the massive outlay of capital required to launch a corporation, this differentiation might be decisive. Company owners who apply for loans backed by property do not have to relinquish legal or equitable title to the property to the lending organization. You and your family are welcome to continue living in the home even though you have pledged it as collateral for a business loan. Securing a loan against a startup company’s property is simpler than securing a personal loan or other types of loans. Your lender may rest assured that they will get their hands on the property if you fail to repay the loan according to the terms and timetable they provide because you are using the property as collateral. Now it’s far less hassle to secure a loan against property to launch your company. It’s possible to borrow a significantly larger sum of money against the value of your home than you would be able to with a personal loan or other unsecured loans. For instance, many investors may pool up to Rs. 3.5 crore to provide mortgage loans backed by real estate, with the loan-to-value ratio varying from 75% to 90% of the property’s estimated fair market value. You may make a well-informed choice about using a real estate-secured loan for startup capital if you know the benefits. Anyone, whether self-employed or on a salary, can get a loan against property and keep it even while making payments. You may use the property as collateral to secure financing for your firm. Or, you can keep living there and use the equity for other uses. [B-02] Conclusion: A loan against your property is the best option for startup business owners. This is because of the good repayment terms, competitive interest rates, and easy application procedures. Get a loan against your property from Piramal Finance to fund your dream business. Learn more about the benefits of a loan against property from Piramal Housing Finance.

08-11-2023

Home Loan

Benefits Of Taking Home Loan On This Festive Season In India

Taking a home loan during this festive season in India has several benefits. For starters, a home loan offer can help you get the best possible interest rate on your loan. Moreover, taking out a loan now may help you avoid higher interest rates when rates inevitably go up again due to increased demand for loans. [B-01] What Is A Home loan? A home loan is a loan that you use to finance the purchase or construction of a house. You can borrow money from a bank, mortgage company, or other lending institution to purchase or build your house. Some important things to keep in mind when applying for a home loan include: Your credit rating is important in determining whether or not you are eligible for a home loan offer Having a good credit history may be beneficial as this will help you get a lower interest rate on your home loan. It is important to read the loan agreement carefully and understand all the terms before signing it. There are many different types of home loans available in India. With a home loan offer, you can get a better rate, fees, and quick processing. Factors To Consider While Taking A Home Loan Here are the factors to consider while applying for a home loan: Ensure that you have sufficient funds for the loan. Your collateral plays an important role. Ensure that you have enough collateral for the loan amount you need. Consider the terms and conditions of the home loan offer before you sign anything. Some offers may have unfavourable conditions that need to be agreed upon. Ensure you understand all the fees associated with a home loan offer, as these can quickly add up. Pay attention to interest rates offered by the home loan provider. Festive loan offers are better, and your processing fees will likely be exempted. Why Take A Home Loan Offer This Diwali? There are many reasons why you may want to take out a home loan this festive season. If you’ve saved up enough money and your credit is good enough, you can get a home loan with a lower interest rate than usual. Alternatively, if you plan on buying your first home or upgrading to a more expensive one, now could be the best time to do so, as housing prices are likely dropping in certain areas across India. Benefits Of Taking A Home Loan Offer This Festive Season The main benefits of a home loan during the festive season are: Lower interest rates One of the best things about home loan Diwali offers during festivals is that you’re likely to find much lower interest rates than usual. This means that you’ll be able to save money on your monthly payments and potentially have less of a dent in your savings if you take out a home loan over a longer period. Offers flexibility Most home loan offers allow borrowers to pay off their loans over time, which can help avoid late payment penalties and lower borrowing costs. You can also pay off a part of the payment in advance without any additional charges. Some home loans provide shorter terms than usual, making it easier for you to buy the home of your dreams without having to wait too long. Pre-approved offers During the festive season, there are various home loan offers. Most of these are pre-approved offers. The loan is offered quickly and with a short wait period. These offers reduce the documentation needs as well. The processing time is also reduced. Long repayment tenure Home loans are typically granted for up to 25 years. It gives you plenty of time to repay the debt and enjoy your newly purchased property without any concerns about financial instability or market crashes. Tax benefit If you have owned your home for at least 1 year in India and meet other eligibility criteria, you can avail of a tax benefit on the home loan amount. Your mortgage provider may offer special packages or discounts specifically designed for borrowers during this period. Processing fee benefits Applying for a home loan during festivals can allow you to get the benefit of reduced processing fees. There are chances that you may enjoy zero processing fees as well. This will save the cost of the loan and will help you get good home loan offers. Quick approval Home loan offers usually come with instant approval so you can start your home-buying journey as soon as possible. The terms of your home loan will be more favourable than those offered in other market conditions. Low risk involved Another benefit of home loans Diwali offers is that there is usually a lower risk attached to them. This means that if you cannot repay your loan on time, the lender will be less likely to chase you down for payment. They may even offer relief by extending the repayment period. Cashback offers Many home loan Diwali offers include cashback offers, which means you can save money on your home loan by agreeing to pay off your loan in full each month. This will help you avoid late payment penalties and lower overall borrowing costs. Easy documentation Although home loan offers are usually available from banks throughout the year, securing a loan before the festive season is typically easier. Most of the offers are pre-approved, and documentation needs are basic. Build credit score You can build your credit score when you apply for home loan offers. This will be beneficial in case you apply for any loan in the future. [B-02] The Bottom Line Now it’s time for you to get the home loan. This way, you can get the best home loan offers that perfectly suit your budget and needs. The best part about home loans is that they provide attractive offers, including zero percent interest for 6 months and flexible terms. However, it is always good to research before applying for a home loan and find out which home loan offer suits you. Visit Piramal Finance to read more about the best home loan offers.

08-11-2023

Know More

Avoiding Online Payment Fraud While Using E-Wallets or UPI Apps

Online payment fraud is a growing concern for everyone who uses digital payment services. With the rise in popularity of e-wallets and UPI apps, fraudsters have found new ways to target unsuspecting individuals, leading to significant financial losses. This is especially concerning for those looking to apply for home loans, as a single instance of fraud could jeopardize their entire financial future. As a result, it is more important than ever to take the necessary precautions to protect yourself from online payment fraud. In this article, we will discuss the various types of UPI frauds, how to identify and prevent them, and the steps you can take to protect yourself from becoming a victim of online payment fraud. [B-01] What Is e-Wallet/UPI Payment Fraud? As you begin to use e-wallets and UPI apps for online transactions, it is essential to be aware of the different types of payment frauds that can occur. Here are some of the most common types of fraud that you should be aware of: 1. Phishing Scams Phishing scams are attempts to trick you into sharing sensitive information. These include passwords, bank account details, or credit card information. Phishing scams are often done through email or messaging apps. They can look like they are coming from a legitimate source. Be cautious of any unexpected messages or requests for personal information. Never share your login credentials with anyone. 2. Social Engineering Social engineering is when fraudsters manipulate you into giving them your personal information. This could be through a phone call, email, or text message. They may pretend to be from a legitimate source, such as your bank. They then ask you for your personal information or account details. Always be wary of unexpected requests for personal information and never share your login credentials with anyone. 3. SIM Swap Fraud SIM swap fraud is when someone takes control of your phone number by switching your SIM card to another device. With access to your phone number, they can reset your passwords and gain access to your accounts. To avoid this type of fraud, always use a PIN or password to protect your phone number. Also, notify your service provider immediately if you suspect SIM swap fraud. 4. Malware and Viruses Malware and viruses can be used to steal personal information or spy on your online activity. They can be installed on your device through downloads, email attachments, or even by clicking on a link. Always use reputable antivirus software and avoid downloading anything from untrusted sources. 5. Misleading UPI Handles One of the most common types of UPI frauds is when scammers create fake UPI handles that are similar to genuine ones. They may create handles with slightly different spellings or replace letters with numbers or symbols to mislead the user. If you accidentally transfer money to the fake handle, there is no way to retrieve it. To avoid this type of fraud, always double-check the UPI handle before making a transaction and never share your UPI PIN or OTP with anyone. 6. Scams Using OTP, UPI PIN Another type of UPI fraud is when scammers call or message you and ask for your UPI PIN or OTP. They may pretend to be calling from a bank or a UPI service provider and claim that an issue with your account needs to be resolved urgently. They will then ask you to provide your UPI PIN or OTP to resolve the issue. Do not share your UPI PIN or OTP with anyone. Banks or UPI service providers will never ask for this information over the phone. If you receive such calls or messages, report them to your bank or UPI service provider immediately. How Can You Avoid Online UPI Fraud? Online UPI frauds can be a serious threat to your financial security. However, with a few simple steps, you can significantly reduce the risk of falling victim to such scams. Here are some essential tips to help you avoid online UPI fraud: 1. Enable Two-Factor Authentication. Always enable two-factor authentication for your e-wallet or UPI app to add an extra layer of security to your account. This will require you to enter a one-time password (OTP) every time you log in or make a transaction. 2. Check the App Permissions. Make sure to check the app permissions before installing any new e-wallet or UPI app. Only grant necessary permissions, and avoid apps that request access to sensitive information. 3. Avoid Public Wi-Fi Networks. Avoid using public Wi-Fi networks to make transactions on e-wallet or UPI apps, as these networks may be insecure and allow hackers to intercept your information. 4. Be Cautious of Offers and Promotions. Be cautious of offers and promotions that seem too good to be true, as these may be phishing scams designed to trick you into sharing your personal information. 5. Keep Your App and Device Updated. Always keep your e-wallet or UPI app and your device’s software up to date to ensure you have the latest security patches and features. 6. Check Your Account Regularly. Regularly check your e-wallet or UPI account for any unauthorized transactions. If you notice any suspicious activity, report it to the app provider and your bank immediately. By following these tips, you can significantly reduce the risk of falling victim to online UPI fraud. Remember, it is better to be cautious than to regret being too trusting later. Stay safe and protect your financial future by taking the necessary precautions. [B-02] Conclusion In conclusion, online payment fraud is a serious issue that can cause financial losses and emotional stress. However, by staying informed and following best practices, you can reduce the risk of falling victim to UPI frauds. Always be vigilant, double-check all transactions and UPI handles, and never share your UPI PIN or OTP with anyone. Remember, prevention is key when it comes to UPI frauds. It is better to be safe than sorry, so take the necessary steps to protect yourself from scammers and fraudsters. By staying informed and following the tips and strategies outlined in this blog, you can safeguard your financial information and have peace of mind while using e-wallets and UPI apps. We hope that this blog has been informative and helpful. To learn more about financial products and services, please visit the Piramal Finance website. Check out our other blogs on related topics, and feel free to contact us with any questions or concerns. Together, we can work towards a safer, more secure digital future.

08-11-2023

Business Loan

What are the Important Things You Should Know About Business Loans?

When you start a business, you take on a lot of responsibilities. One of the crucial aspects that you need to focus on is having enough money at all times. Business owners have to pay close attention to business financing for raw materials, daily costs, employee salaries, and other expenses. There will also be times when some delays will occur in receiving payments, and businesses must be financially prepared to face these situations. This is where a business loan can come in handy as one of the best business financing options available. [B-01] What Are Business Loans A business loan is a popular form of business financing where lenders offer you money for your business needs in the form of a loan. You can use these funds for many things, including buying assets, paying for daily expenses, making payments to suppliers, and much more. But it is still a loan, and you need to repay it on time with interest. Hence, you need to consider a few vital aspects of taking a business loan before you make any decisions. Types of Business Loans There are many types of business loans that you can select from. All of these loans have their own benefits and can be used to meet your urgent financial needs. Some of the most popular business loan types are: Secured Business Loan: You need to pledge some assets as security or collateral with the lender to obtain this high-value loan. Unsecured Business Loan: You do not need to offer security to get this type of business loan. Working Capital Loan: This is a short-term loan meant to help you pay for the daily expenses of your business. Debt Consolidation Loan: If your business has too many loans and you are required to pay multiple EMIs each month, this loan can help you combine all of them into one EMI. Professional Loan: If you are a CA, doctor, CS, or any other professional, then this business loan can help you start your own business. Loan Against Property: If you need a high-value loan and have property to pledge, then this loan is preferable. Business Loan Interest Rates The business loan interest rate is the cost that you pay to take the loan. Your EMI for business financing includes the principal and the interest rate. Your business loan interest rate depends on various factors, such as: Loan Types: Unsecured business loans have higher interest rates compared to secured business loans. The reason for this is that the risk is higher for the lender since there is no collateral. Lender: The business loan interest rate depends on the lender. So, you must undertake in-depth research to find the best lender for your precise financial needs. Credit Score: If you have a credit score of 750+, then the interest rate will be lower. Whereas, with a credit score of 650 to 700, you will have to pay a higher interest rate. Business Type: The interest rate for your business loan can vary according to the nature of your business. MNCs, or big companies, will have to pay lower interest rates compared to start-ups, which have no track record. Location: Businesses located in a metropolis can obtain lower business loan interest rates. Businesses in smaller or remote areas may have to pay higher interest rates. Business Loan Eligibility Requirements Another crucial factor that you must know about business financing is the eligibility requirements. Every lender has a given set of rules against which they will compare your profile. Only if you meet the criteria, will you be eligible for a business loan. Here are some key eligibility requirements that you must know: Credit Score: You must have a good credit history and a good credit score. Your CIBIL score must be 700+ to get a business loan. There must not be any EMI bounces or defaults in your credit history. Business Age: Your company must be at least three years old. It is considered ideal if the company shows a growth trend during this time. Also, the venture must be a profit-making enterprise. Age: All loan applicants must be over the age of 23 but less than 65, and they must be Indian nationals. Work Experience: All applicants must have work experience of at least four years to be eligible for a business loan. Paperwork: You must have all the required documents ready with you to apply for a business loan. Some of the documents you must provide include: A business license GST registration Bank statements for 1 year GST returns for 1 year KYC documents for all applicants Income tax returns for 3 years Business Loan Charges Apart from the business loan interest rate, you also need to consider other costs associated with the business loan. These costs can add up, so you must factor them in while you make a decision. Some of the additional business loan charges are: Processing Fee: This is a certain percentage of the loan amount. In some cases, this can be waived as well. Foreclosure Charges: This is a percentage of the amount you must pay if you are prepaying the loan before its due date. Cheque Bounce Charge: If your EMI cheque is returned, the lender will levy this fee. Penal Interest: If your EMI is returned unpaid, then you will have to pay interest on the amount until it is repaid. [B-02] Conclusion Getting a business loan is important for many business ventures looking to grow or expand their operations. Since business loans are a major commitment, it is necessary to conduct thorough research, including finding out about the different lenders and their business loan interest rates, before applying. To read more helpful articles about business loans and other business financing options, visit Piramal Finance and receive more information and guidance on business financing.

08-11-2023