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Personal Loan

Is it good to apply for personal loans online?

Applying for a loan online or offline might be difficult for a new borrower. Online loan applications are often more user-friendly. On the other hand, it might be more personal to speak with a loan officer in person rather than apply for a loan online. Read on to learn more about the benefits of applying for a personal loan online. This will give you many insights into the online world of finance and will help you emerge as a better person. Keep reading to learn more. [B-01] Online Loans: What Do They Mean? Instead of going to the bank, you can apply for a loan online. You may now pre-qualify with many lenders online without risking a hit on your credit score through hard credit inquiries. The entire process of getting a loan is quicker if done online. Several online lenders provide great deals, which can help keep interest rates low. When is the right time to apply for a loan online? Still confused about whether a loan is the right option for you or not? Wondering whether you should go for it or not? Read on to learn more. Even though getting a personal loan might be tough, online lenders work hard to make the process easy for borrowers. Applying for a loan online is simpler and quicker than applying in person. Here are some situations in which you may apply for an online personal loan: – Get pre-approved before applying: Several online loan providers will pre-qualify you for a loan based on your credit history and other factors. Whether you want to know how much money you can borrow or if you can obtain a suitable interest rate, you should choose a lender who offers such services online. Don’t have any financial ties at the moment: Some lenders offer perks to their loyal clientele, such as lower interest rates or other discounts. One possible benefit of using an online lender rather than a bank is the lower interest rates they can provide. Fast monetary resources are required: Online lenders’ funding and approval processes are typically faster than those used by some banks and NBFCs. Customers who apply for a loan online may get their money the same day. Either lacking a credit history or having a low credit score: Loan approvals from several online finance companies now include on-time utility bill payments as alternative credit data. Therefore, applicants with less-than-perfect credit histories may still be evaluated. A personal loan is a loan taken out to meet urgent needs. Personal loans are easy to apply for and obtain from most major lenders. A personal loan might be a good option if you need quick cash for needs like a wedding, a car, or a trip with loved ones. A personal loan online apply process might be the quick solution to your money problems. You would not need to use cash to buy an expensive gadget like an iPhone X or a PlayStation if you took out a personal loan because the loan would cover the entire cost. The repayment plan is simple, and you have plenty of time to finish it without being penalised. The five benefits of getting a personal loan online Online methods are always more effective. They help people progress and complete work in less time than before. Let us understand a few vital perks of getting a personal loan through various online methods. Highly transparent process: The times have changed and the world is going online. With this comes the advanced use of the internet. Everything is done online, from getting money to transferring it to getting a loan. The online loan process is very transparent and helps you get funds faster. Finance Applications for personal loans can be made online: There are various apps online that can help you speed up the process of getting a loan. Go for apps that will give you guidelines for following the process. You can check the status of your loan online: You may check on the progress of your loan application at any time after submitting it. Your application will be given a number. This way, you can keep tabs on your loan and make adjustments in an easy and convenient online environment. You are free to inquire about any aspect of your account, including the current amount, the time the balance has been open, the interest rate, etc. The quickest processing time: Borrowers can save a lot of time waiting for approval on personal loans applied for online. Personal loans were formerly processed manually, which added extra time to the application process. A computer programme, however, streamlines and shortens the time it takes to complete an online loan application. You may use it for anything you choose: Emergency medical care, your child’s college tuition, your dream wedding, an impromptu trip, or a sudden monthly demand for funds are many reasons to look into online personal loans. A personal loan’s quick funding time is invaluable in these cases. You also benefit from not having to justify your decision to your lender. [B-02] Conclusion: The days of arduous and time-consuming loan applications are gone. To get a personal loan, you no longer need to visit the bank many times, fax in reams of documentation, and wait for months. While submitting an online application, take your time with it. Instant electronic approval with zero hassle can come if your profile meets the guidelines. Visit Piramal Finance for the best personal loan offers. They also have many blogs and articles to help you improve your skills in financial matters.

08-11-2023
Home Loan

Hidden Factors You Should Know About Home Construction Loan

Everyone wants to reside in their ideal home. If one has planned to construct their own home rather than purchasing a ready-to-move-in, the experience will undoubtedly be one of its kind. Numerous house financing organisations provide loans for home development to make your aspirations come true and for you. [B-01] Here is a comprehensive explanation explaining a home construction loan, the many types of home construction loans, how to apply for one, and the benefits of doing so. Introduction to Home Construction Loan With a home construction loan or home renovation loan, you may borrow money to build your own house rather than buy an apartment. The lender disburses the funds in phases as each home construction stage finishes. If you want to apply for a loan to build a house, you must give the lender a complete building schedule, a construction plan, and a reasonable construction budget. Your loan money will be delivered in stages as needed for each stage of construction after your construction loan is authorised. The lender will visit the building site to assess it or hire a technical team from a different company to do so. Types of Home Construction Loans Self-build home Loan You can choose a self-construction loan if you need money to build a house on a site you have bought or already own. Plot + Construction loan A Plot + Construction loan would be ideal if you don’t already have a plot in your name and need money to pay for the plot and the home construction on it. Please be aware that if you only need money to buy a plot and not construct a home, you will need to apply for a property or personal loan, as these are not considered home construction or home renovation loans. Home Extension or Renovation Loan If you want to add a new room or a floor to your current house, you can apply for a home extension loan. Similarly, you may apply for a home improvement loan if you want to paint your property, make significant repairs, or give it a new appearance. Construction-Only Loan These loans are no longer typically offered by lenders. It is a loan used only for construction and must be repaid after the loan’s term is over. If not repaid, the borrower must get long-term financing. How to Get a Home Construction Loan? You’ll typically need the following to be eligible for a home construction loan. A credit score of at least 620 (although the higher, the better). A debt-to-income ratio of up to 45% for evidence of your ability to repay the loan. A down payment of 20% to 25% of the project’s costs. A signed contract with a licensed and insured builder. An evaluation of the land and the finished home’s value. A detailed project plan. You can acquire a house construction loan from various sources, including banks, credit unions, and mortgage lenders. Start by researching interest rates, closing fees, and other loan features lenders offer in the construction site’s neighbourhood. Keep in mind that, for convenience’s sake, you might choose to obtain both the first construction loan and the permanent loan from the same lender. Steps to Follow for a Home Construction Loan Step 1: The borrower must first complete the application form. Step 2: The candidate must provide all required documentation, including a bank statement, Form 16 and documents proving their identity and ownership of the property. Step 3: The loan money is subsequently released to the borrower’s bank account in tranches according to the building stage following successful submission and approval. Hidden Factors to Know About Home Construction Loans Specified Construction Plan Building plans and blueprints are the basis for finalising and approving construction loans. Plans cannot be altered after finalising agreements. Therefore, before seeking financing, have a precise blueprint of your home construction details. Short tenures The loan term for home building or home renovation loans is often shorter than ordinary home loans. Use one of the many online house loan calculators to estimate your monthly payments before applying for home-building financing. Eligibility criteria You must meet the eligibility pre-requisite before applying for a loan for a house building. Meeting the eligibility pre-requisite often entails having a high credit score, stable employment, work experience, etc. In addition, a co-applicant is needed if the site or the property under development is co-owned. Documentation In addition to the standard income and KYC paperwork, a borrower must submit additional documents before receiving approval for house-building financing. You must give your lender the plot paperwork; sales deeds planned home floor plan, an official no-objection certificate from the appropriate authorities, authorised drawings, and other such requirements. Why Choose a Home Construction Loan? The freedom to design your ideal home. With a construction loan, you can develop your home in whatever design, or layout you wish, unlike when you take out a loan to buy a property. You don’t have to pay interest on the whole amount starting on the first day. Depending on the development stage, a home construction loan is issued. As a result, you will only need to pay interest on the money already given to you. Future construction, remodelling, and enlargement of your home are all permitted. You can easily obtain a home improvement loan and make improvements to your newly constructed home that will make it more comfortable if you decide that it is necessary to renovate your home or add a new floor or room. Plus, you can also opt for a house renovation loan. [B-02] Conclusion A “home construction loan” or “home renovation loan” is the right financing for you if you want to build a house or buy land and build a house simultaneously. Yes, home construction demands commitment, but Piramal Housing Finance always offers simple eligibility for home construction loans. We provide great interest rates for a home construction loan. Build the house of your dreams by contacting Piramal Housing Finance!

08-11-2023
Personal Loan

Is it possible to get a personal loan without any job?

You might be having many wishes, desires, and aims in life. But finance often becomes a constraint to such desires. Here’s when a personal loan comes into the picture. Personal loans are loans that you can get without providing any security. As it is an unsecured loan, lenders follow a strict credit review process before offering loans. They will check your salary, ability to repay debt, credit history, etc. Based on these parameters, they will decide whether they should give you a personal loan or not. We can say that personal loans are a loan against our income. But is it possible to get a personal loan even if we are unemployed? It might come as a surprise to you but yes! You can get a personal loan even if you are unemployed. Let’s see how! [B-01] Personal Loans Without a Job The kind of loan you will be given falls under secured loans, government loan schemes for the jobless, and payday loans. Let’s see how you can get a personal loan without a job: 1) Government Loan Schemes for Unemployed The government has initiated various loan schemes to meet the financial needs of unemployed people. Following are some of the personal loan schemes that you can avail of even if you don’t have a job: Pradhan Mantri Rozgar Yojana: This scheme was initiated especially to meet the needs of the unemployed. It focuses on providing financial resources to enable unemployed people to start their own ventures. Loan Subsidy For Unemployed: The Tamil Nadu government initiated a scheme called New Entrepreneur and Enterprise Development Scheme (NEEDS). The government provides a 25% subsidy on loans given to graduate unemployed youths. Agricultural Loan For The Unemployed: The government has collaborations with various banks to provide agricultural loans to the unemployed. This loan can be utilised for any agricultural project. You should also check out other central and state government schemes that can help you get personal loans. Contact your nearest bank or Piramal Finance for more information about any such scheme. 2) Loan Against Rent And Interest Income For availing of personal loans, it is important that you have a steady source of income. Even if you don’t have a job but are earning good rental income or interest income, then banks may grant you a personal loan. These incomes are well considered by the bank for giving you personal loans. Also, other sources of passive income can be considered for getting the personal loan sanctioned. 3) Personal Loan Against Assets While personal loans are unsecured in nature, you can insist on a secured personal loan by providing any security. Banks can accept the security and give you a personal loan. While granting the loan, the bank will ask you for security against the loan. The bank will seize this amount if you don’t repay the loan as promised. That is why they require security before making loans. In your case, since you don’t have a steady source of income but have fixed deposits, this can work well as security. Your lending bank will give you about 60—80% of the value of your fixed deposit as a loan. The rest of your fixed deposit can continue to earn interest as before. For example, say you want a loan of Rs. 25,000 against your fixed deposit of Rs. 1 lakh. You can get between Rs. 60,000 and Rs. 80,000 against your fixed deposit. Your requirement, however, is only Rs. 25,000. The bank will deduct the loan amount from your deposit and let it continue to earn you money for the rest of its tenure. You can also use other assets to avail of personal loans like personal loan against property, gold, securities etc. to avail of such loans. How to Repay the Loan Typically, the duration of a personal loan is 12—60 months. You are allowed to repay your loan according to your capacity. However, you will need to fix a figure that you can conveniently repay each month during the tenure of the loan. Use your bank’s personal loan EMI calculator to determine the amount you should pay each month. You just need to enter the personal loan amount, tenure and personal loan interest rate. You will get to know the exact amount of personal loan EMI that you will have to pay for your personal loan. Eligibility Criteria for a Personal Loan Your bank will decide to give you a loan depending on various criteria. These are: Your credit rating Your tenure as a customer with the bank Whether your repayments in the past have been regular and complete Risks of Taking Out a Loan When Unemployed Think well before you take out a personal loan if you don’t have a job. After all, you have no steady source of income right now. Once the bank offers you the loan, it will expect to receive the monthly instalments you promised to make. In case you miss out on personal loan EMIs, then the following consequences can follow: You Could Face Financial Problems The fact that you want a loan implies that you have a definite repayment plan. If you do not pay each month as you promised, you can have many financial problems. So, think wisely before opting for a loan. Also, you can work for a few hours a day online or offline and create a source of income equal to your instalment. You Could Lose Your Security By not paying your instalments each month, you could lose your security. Additionally, you will have to pay extra interest. Your Credit Score Could Be Harmed Late payments or irregular instalments could hurt your credit score, so be very careful of paying by the date you promised. Also, pay the promised amount each month. [B-02] Conclusion Aren’t you relieved that you can get a bank loan even though you don’t have a job? You must be. Now all you have to do is to check if you can get a personal loan through any of the above 3 ways. For more help in other aspects of personal finance, check out the Piramal Finance website www.piramalfinance.com. Piramal Finance is a leading financial services company in India. It deals in personal loans, housing loans, and other related financial services. Get onto this site and learn all you need to know to be financially aware.

08-11-2023
Business Loan

How can a corporate which has CIBIL issues get a business loan?

Having adequate money is one of the most critical variables that affect a project’s success. This is critical for the company’s long-term survival. A good CIBIL score is also critical for a company as it is directly related to access to credit. A company’s CIBIL depends upon the owner’s and management’s credit history. Business loans are gaining popularity these days. They help companies manage their working capital requirements and expansion plans. A company should always have more than the minimum CIBIL score for business loan, to ensure that credit facilities are readily available. Every business owner who wishes to manage the company profitably must have a healthy combination of equity and debt. You can think about expanding at any stage but might be short of funds. For this, you might need a loan which is in turn, based on your CIBIL. [B-01] How will your CIBIL score change the process for a business loan? Businesses often don’t get loans based on the credit history of the business owner and the company itself. With CIBIL, financial institutions like banks and lenders can figure out how risky it is to lend money to a borrower. But when the business needs a loan, each owner’s credit and CIBIL scores are considered. If the company has more than one owner or promoter, they must all have high CIBIL scores. If they don’t, the request for a loan can be denied. Banks and NBFCs that lend money look at borrowers’ CIBIL scores to determine how likely they will get their money back. If each partner has a credit score of at least 700, it will be easier to get a loan. The financial profiles of each partner are compared to the business’s creditworthiness. If you need a loan for your business, your CIBIL score will be one of the most important things a lender looks at. If the people who own the company and the industry have good credit, there will be less trouble. This happens when a lender gives you credit because they think you deserve it and your credit history shows that they can trust you to repay the loan. If you have a good credit score, your loan application will be accepted quicker, and the money will be in your account sooner. A steady flow of money in your bank account and a high CIBIL score are significant. The loan application can be turned down if the business needs a reliable way to make money. Minimum CIBIL score for a business loan You may apply for secured or unsecured loans to establish or build your own company. To get a secured loan, a company owner must use valuable assets as collateral. When a borrower fails to repay the loan amount, the CIBIL score for a business loan will take a hit. In this case, the lender may reduce the risk of loss by foreclosing and selling the collateral to make up for the loss. An unsecured loan, on the other hand, does not need collateral. Lenders must consider the company’s creditworthiness and the owner’s. As previously stated, your CIBIL score may range from 300 to 900, although a higher number typically indicates a better profile. A credit score of 750 or better is typically sufficient to get a loan. Even though your CIBIL score is poor, if you fulfil the other standards, the bank or NBFC may offer you a loan. However, if your CIBIL score is less than 650, you may need help to obtain a loan for your firm. How to Get a Better CIBIL Score? Raising your CIBIL score may be more challenging than you anticipate if you want a business loan immediately. You can do a few things to improve your CIBIL score, making it more likely that a lender will give you a loan for your business. Here are some examples of these ways of doing things. You may do the following to raise your poor credit score: Pay off all debts and credit card obligations by making timely EMI payments. Use up to 30% of your available credit at a time. Check your credit report to see if there are any mistakes and if there are, try to get them fixed. You can ask your bank to raise your credit card limit. Don’t ever agree to co-sign or co-borrow on someone else’s loan. Keep all of the bank and credit card accounts you already have open. You should apply for different kinds of credit, but unsecured loans are the most important. Ask only a few questions about how to get money in different ways. Business Loan with Low CIBIL Score There are various methods to correct any issues that may have shown on a CIBIL score, which is great news. Correct any problems you discover: Credit report information may include errors. However, this is only sometimes the case. This might be because certain historical accounts are inaccurate or out of date. It is conceivable for a paid-off debt to appear on someone else’s credit record or vice versa. Check your CIBIL score for errors before applying for a business loan. Improve Your Score: The second option is to strive to improve your score. One method is to pay off some of your debt to ensure that you have a minimum CIBIL score for business loan. You must make monthly principal and interest payments on whatever obligations you have. Gather the facts Some lenders will not even consider loan applications from persons who do not have excellent credit. This applies to any firm that deals with money, but banks are the finest illustration. However, NBFCs are more flexible in this regard. If you check with them, you may be able to acquire a business loan even if you have a poor CIBIL score or rating. [B-02] Conclusion A lender’s decision to provide an unsecured business loan will be heavily influenced by either the business owner’s CIBIL score or the firm’s CIBIL score. It demonstrates the borrower’s dependability in repaying debts. Visit Piramal Finance to get the best deals on business loans. They also have many articles and blogs to help you learn about CIBIL scores and business loans.

08-11-2023
Home Loan

All You Need To Know About Up-Downs In Loan Against Property Interest Rates During The Festive Season

People apply for loans for various purposes. These may include medical emergencies, weddings, vacations, expanding business, education, and many more. There are various types of loans available in the market. One of them is a loan against property(LAP). A loan against property is a secured loan that requires a property to be used as collateral in exchange for funds. This secured loan product can be used by salaried individuals and businesses. All it requires is mortgaging your residential or commercial land. [B-01] There are several benefits of choosing a property against loan to raise funds. The long repayment period is one of its benefits. The repayment period can be 5 to 15 years. When compared with other loans it has lower interest rates and charges. Since it has a longer repayment duration and lowers interest rates then the EMI would also be low. It is also easy for you to get a property against loan as the banks receive collateral in return. It is an affordable option to raise funds in a time of need. Factors To Consider Before Applying For A Loan Against Property Before applying for a Loan Against Property (LAP) you should consider the following factors: Interest RatesInterest Rates have a huge impact on your EMI. If your interest rate is low then your EMI amount would be subsequently low. Zero Tax BenefitsWhen you get a housing loan or education loan, you receive certain tax benefits. However, that is not the case with Loan Against Property. LAP has no tax benefits. Property ValueYour loan principal amount greatly depends on your property’s value. Thus, before applying for LAP, be sure about your property’s value. Loan Against Property Interest Rates During The Festive Season You purchase new jewellery, car, household items, and clothes every festive season. You also see a lot of discounts and offers during this period. Banks further reduce interest rates to attract customers to avail of a loan. These offers help the real estate industry and the banking sector by increasing sales. The festive season is the best period to apply for a loan as the cost of borrowing becomes less. The real estate market has shown an upward trend during the festive season. This may cause the banks to slash their interest rates to attract customers. Factors That Affect Loan Against Property Interest Rates During The Festive Season Various factors determine your property loan interest rate, processing fees, and other parameters. You should compare different loan plans before deciding on one. While home loans may provide you with an interest rate of 6.7-14%, LAP interest rates are different. Let’s look at the range of factors that impact the loan against property interest rates: Age: Firstly, the age of the applicant is a factor. As banks prefer applicants between 25 and 65 years of age. Relationship with Lender: Secondly, if the applicant has a long-standing relationship with the bank then they might be offered a lower interest rate. Property Type: Thirdly, the interest also depends on your property type. If it is a commercial property that has clear ownership then a lower interest rate can be expected. Income: Your income level is also another factor that is taken into consideration. If you have a higher income level then you may easily get qualified for a loan. Principal Value: If your principal amount is high then your monthly payment is also going to be high. Tenure: Another factor that affects your interest rate is the duration of your loan. If you have chosen a longer duration, your EMI would be low and vice versa. Type of Interest Rate: If your interest rate is floating then your EMI would be cheaper compared to a Fixed Rate of Interest. A floating rate of interest depends on the interest rate set by the Reserve Bank of India. It keeps on changing according to the market. The Fixed rate of interest is decided by the bank itself. Employment: Your occupation has a great effect on your interest rate. If you change jobs frequently then it may be tough to get a loan and even tougher to get a lower interest rate. Types Of Loan Against Property Offers During The Festive Season Various banks decrease their interest rates during the festive period. These decreased interest rates lead to less cost of borrowing. Banks usually reduce processing fees during the festive season to attract customers. This also leads to lowering the overall cost of loans against property. Some banks even offer to waive the pre-payment charges during the festive season. Pre-payment charges are the fees that you have to pay when you decide to close off the loan before the tenure ends. Banks also introduce ways to make the loan process easy for you. You can apply for the loan online and complete it in just a few minutes. You should be aware of any festive offers that your bank introduces during the festive season. It may help in reducing your monthly payment and overall borrowing cost. Contact your lender during the festive season to be updated about such deals. [B-02] The Bottom Line The festive season is a great time to make use of the best offers and deals. It is a great time to get your interest rates and cost of borrowing reduced. These festive offers are applicable for new loans and balance transfers mostly. If you wish to learn more about property against loan, you should visit Piramal Finance. By applying for a loan against property you can receive funds at a low-interest rate and a longer repayment schedule.

08-11-2023
Home Loan

Home Loan for Government Employees – Low Interest Rates

If you are a government employee and looking for a home loan to expand your real estate possession, special loans designed for government employees might be beneficial. India has several kinds of loans directed explicitly towards government employees. These loans offer an affordable interest rate and have varying tenures to help you repay the loan in instalments. As a government employee, you can apply for low-interest home loans. Piramal Housing Finance offers the best options. Get to know more about their loan offerings right here. [B-01] Piramal Housing Finance Loans Piramal Finance, one of India’s most well-reputed lending institutes, is known for its various loan schemes at affordable interest rates. The institute also offers a special loan at a low-interest rate under its personal loan scheme. The scheme is available for a wide range of people. Piramal Finance is among the prime lending institutes today. If you are a government employee, then you can get a home loan here. The most interesting part about these loans is their attractive features. These loans are designed to meet your needs. Additionally, they fit into your financial goals, making it easier for you to design your finances accordingly. Benefits of the Loan Government employees enjoy an easy and fast loan application process under this scheme. It ensures the loan applications are reviewed soon, with minimum documentation. Thus, employees looking for a quick financial loan may opt for this. Government employees availing of this loan can repay the amount in multiple payment modes. Such a feature adds to the advantage of the borrower as they can either pay it in cash, card, or other means of payment. Individuals applying for this loan can also apply for a second loan a year after the first loan is disbursed. However, the borrower must ensure paying the instalments on time to get the second loan approved. The loan also has a minimal processing fee that helps government employees with limited income avail of it. The low processing charge does not increase the total amount to be repaid and is thus quite affordable. Most government employees can fulfil the eligibility criteria for this housing loan. Hence, the home loan is quite inclusive in nature and ensures individuals with limited income can also avail of a loan when needed. Government employees looking for immediate financial relief can consider this housing loan because of its quick processing. The loan applications are reviewed instantly, ensuring a direct transfer of the amount to the borrower’s account. The loan applies to all government employees. Thus, individuals working in any government sector are eligible for the loan, irrespective of their annual income. Therefore, employees with meagre wages can also apply for this loan. However, the maximum loan limit is set accordingly. Individuals can also apply for a joint loan. Thus, the loan can have one applicant and a co-applicant. If a government employee avails of the loan for their child’s education, the former becomes the co-applicant. This loan is designed for all kinds of government employees, and there is no bar on the usage of the funds. Thus, government employees can utilise the loan amount for any personal activity, including travel and marriage. The loan requires minimum documents like address proof, identity proof, PAN card, income statement, etc. Eligibility Criteria And Documents Needed As a government employee, you can apply for a home loan. You only need to meet the basic criteria for eligibility. Further, you will need to furnish a few basic documents as well. Let us check them here: You must be an Indian citizen. Most lending institutes prefer to offer low-interest home loans for government employees as long as they are Indian citizens. It can be helpful if you have some work experience. Most lending institutes prefer candidates with a minimum working experience of three years. You should be between the ages of 23 and 70. A good CIBIL score will help you grab this loan. Ideally, a score above 700 is preferred. You will also need to furnish certain documents. Some of them are as follows. Aadhar card Passport Driving license Proof of address Proof of identity A recent salary slip or Form 16 Bank statement for the last 3 months Applicable Interest and Charges The following table illustrates details associated with low-interest loans. It will give you an idea about the different charges that go into processing the loan. Fee TypeCharges ApplicableRate of Interest6.70% onwards for salary-earning employeesProcessing feesUp to 1% of the loan amountLoan statement chargesNILInterest & principal statement chargesNILEMI bounce chargesRs. 3,000 – Rs. 5,000Applicable Penal interest2% / Month or as determined by the instituteSecure feeRs. 3,999 – Rs. 5,000 These charges and rates are likely to change over time. It is recommended that you enquire about them before taking the loan. Based on your CIBIL score and other factors, the exact range of these figures might vary for you. [B-02] Conclusion Selecting the right home loan can take time and effort. However, there are several home loans for government employees that you can avail of and turn your dream of having a new house into reality. It is vital to ensure you select an appropriate home loan for government employees after reading about each of them. Such loans provide several benefits. The best feature of these loans is their flexible and affordable EMIs. Also, there is no processing fee involved in such loans. You can get them at competitive rates of interest. Piramal Finance can help you delve deeper into each loan type and its terms and conditions. Read about different loans and their features right here.

08-11-2023
Tips & Advice

5 Financial Planning Tips For Young Professionals

As a young professional, you may be under the impression that your financial life is still in the future. But the truth is, it’s never too early to start your financial planning. The sooner you start thinking about how much money you need and how much debt is too much, the better off you’ll be when it comes time for retirement. Here are five tips for saving money as a young professional: [B-01] Create a budget and stick to it Whether it’s monthly or biweekly, make sure that each paycheck goes toward paying down debt or building savings. And don’t forget about living expenses like rent, utilities, and groceries! But don’t stop there. Create separate budgets for each of your financial goals (like buying a home). If possible, add more categories as time goes on so that they stay updated with all of the changes that occur throughout life’s journey (such as getting married). Don’t forget to reserve some money for the emergency fund. To make sure you have enough money in case something goes wrong, it’s important to start saving money as soon as possible. Follow further steps in financial planning if you don’t already have a plan and strategy for your finances. Even if you don’t know how much money is enough for you, we suggest that this article serves as a quick reference guide on what steps need to be taken before moving forward with setting up an emergency fund. The first step in creating an emergency savings plan should involve figuring out how much income needs to be saved each month from all sources (including monthly bills). So that when unforeseen circumstances arise (i.e., job loss), there will be enough funds available without any other workarounds necessary. Think long-term It’s easy to get caught up in the moment and focus on what you want right now. But if you’re not saving money, then there will be no money left when your goals are met! If you’re going to start a family or buy a house someday, it makes sense to save up some cash while you can so that those things happen sooner rather than later. You’ll also need money for retirement and college tuition later on. And who knows when those big purchases might come along? A good financial plan should include all three areas: short-term needs (like buying houses), long-term savings goals (like retirement), and early stages of business ventures. These could be starting an online shop or creating an app on top of social media platforms like Facebook or Instagram. Invest Investing is the process of committing money to earn a profit. There are many different types of investments. These include stocks, bonds, and mutual funds. You can also choose to invest in real estate or other property. It’s important to remember that investing carries some risk. You could lose your entire investment if an investor doesn’t do well or if the market changes unexpectedly. However, there are ways to reduce these risks by buying low-risk investments that pay off over time—like Treasury bills—and avoiding high-risk ones like stocks when possible. This isn’t always possible, though. One of the easiest ways to save money is by putting your money in a high-interest account. High-interest accounts are great for short-term savings. This is because they offer relatively low rates. If you’re going to be saving for a specific purpose, like buying a car or paying off debt, then it makes sense not to put all of your money in one place. Have a good life insurance plan Life insurance is an important part of financial planning. It helps you protect your family and assets. It can also help pay for expenses in the event of your death. What’s a good amount? We recommend that you get enough life insurance to cover at least three times your annual income (or two times if you have limited savings). You also need some sort of disability coverage. Most employers offer this through their plans. If possible, add additional term life coverage so that if something happens within the first 10 years after getting it, there’s still money available for additional funds during those years as well! Start saving for retirement early, even if it’s just a little bit Start saving for retirement early, even if it’s just a little bit. Starting to save for your future is one of the most important financial planning tips for young professionals. You’ll want to start building up some money to fund your lifestyle after you leave school, or if you’re already out of college and working full-time (or even part-time), then start planning on how much money will be necessary so that you can retire someday. The best way to do this is by saving every month with an automatic payroll deduction from each paycheck. Ensure that it goes directly into an account where it can grow over time without any interference from other people or outside forces like taxes! Once this has been established, we’d recommend doing the following: Contribute as much as possible each month; Diversify investments across different types of accounts (i.e., stocks vs. bonds); Investing should always be done carefully. This is because there are no guarantees when investing in stocks, bonds, mutual funds, etc., but at least try not to make bad decisions; Do not make withdrawals unless necessary. [B-02] Conclusion Whether you’re a young professional or someone who has been in the workforce for years, financial planning can be a complex process. It’s important to take it seriously and get started early on! Start by creating a budget, keeping track of your income and expenditures, and making sure that your money is invested wisely. And don’t forget about life insurance. It’s one of the best ways to protect yourself from unexpected events like job loss or disability. And lastly, retirement planning needs to start earlier than ever before.

08-11-2023
Tax

Everything You Need to Know About Taxes on Gold in India

Many people purchase gold to save money for long-term goals. Most investors consider gold to be one of the safest forms of investment. In India, gold is extremely popular — not only as jewellery but also as an investment option. In FY2021-22, India imported $ 46.14 billion of gold. Investments in gold are popular because the process is straightforward. However, in recent times, you can invest in different types of gold, and each gold type has a different tax rate. This article first discusses the different types of gold you can invest in and then the tax rates on gold. [B-01] What are the types of gold? The following are the types of gold you can invest in. Physical gold includes coins, bars, and jewellery. Physical gold is any item of gold you can hold and touch. Paper gold consists of gold ETFs and gold bonds. This gold is purchased on the stock market and is deposited as units in your Demat account. Derivative gold contracts are gold bought on the commodities market. Digital gold is purchased from mobile wallets such as Google Pay and PayTm. While there are many options to choose from, as an investor, you must make an informed decision based on the tax rates on gold. What are the tax rates on gold? 1. Tax on physical gold Physical gold is one of the most prominent choices among investors in India. Since physical gold is imported, all physical gold is subject to import duty. The taxes rates on gold are as follows: The import duty tax on gold is applicable. The import duty tax on gold has been increased from 7.5% to 12.5%. Physical gold is also subject to a 2.5% Agriculture Infrastructure Development Cess tax. When investing in gold, consider the Goods and Service Tax (GST). Currently, 3% GST is charged upon the purchase of physical gold. Physical gold is also subject to labour charges. The labour charges range from 8% to 35% on gold jewellery. All these charges are applicable if you are purchasing gold. If you are selling physical gold, you will have to pay the tax deducted at source (TDS). TDS is applicable for all sales of gold. If you earn more than Rs 1 lakh from the sale of gold items, the total amount is subject to a TDS of 1%. 2. Tax on Digital Gold The RBI issues the Sovereign Gold Bonds on behalf of the Government of India. Each bond represents 1 gram of gold. Since these are government-backed, they are relatively safer. If you sell the bond within three years, you have to pay short-term capital gain taxes. The bonds are eligible for long-term capital gain taxes three years after the date of purchase. The amount will be subject to a 20% tax when the indexation benefit is in effect and a 10% tax otherwise. Sovereign gold bonds have a long maturity. However, only individuals will be subject to long-term capital gains, not trusts or HUFS. There is no TDS applicable to this type of gold. However, a 2.5% per annum tax rate applies to sovereign gold bonds. 3. Gold Exchange Traded Funds (Gold ETFs) Gold ETFs are mutual funds that are traded on the stock exchange as units. These often represent the underlying value of gold. Therefore, different mutual fund houses will issue different types of ETFs. If you are investing in gold ETFs, remember the tax rates on gold are different. The tax rates on gold ETFs are as follows: GST: GST is applicable on brokerage and STT. 18% GST is applicable on gold ETFs. Short-term and long-term capital gains: Short-term and long-term capital gains on gold ETFs have the same tax rates as sovereign gold bonds. The amount will be subject to a 20% tax when the indexation benefit is in effect and a 10% tax otherwise. No TDS applies to gold ETFs. 3. Taxes on Gold Derivatives The taxes on gold derivatives are significantly different. The returns you get from gold derivatives can be claimed as business income. The tax rates on gold derivatives are 6%. However, you can only use this advantage if the total turnover of the business in that financial year is less than Rs 2 crore. 4. Gold as a Gift Gold received from any close family members, including parents, siblings, spouses and children, is tax-free. However, if you get gold as a gift from people who are not your immediate family members, you will need to pay taxes on gold as per the IT slab. The taxation payment will be applicable only if the amount is Rs 50,000 or more. The price of this item will be considered as ‘income’, and you will have to include this when you file your income tax at the end of the financial year. If you receive gold with a market value below Rs 50,000, it will be considered tax-free. [B-02] Conclusion The tax rate on gold is lower than the tax on most of the other commodities in India. As the article has highlighted, different types of gold have different tax rates. While many people purchase physical gold as an investment, remember it is also subject to tax. Tax rates on gold are not complicated. This article has highlighted all the taxes you have to pay and situations where your gold is tax-free. If you need more information on the tax rates on gold in India, reach out to the professionals at Piramal Finance. You can also visit Piramal Finance to read more articles on personal finance, business finance, taxes, investment and more.

08-11-2023
Tax Savings

How Much Tax Can You Save Under Sections 80C, 80D, and 80G?

Everyone has the same goal of becoming stable. Although it necessitates careful preparation and a diverse portfolio, different ways to invest include fixed deposits, savings plans, and life insurance. There are many tax schemes to reduce taxes for an individual. Granting gifts and aiding medical causes also increased the advantages. Knowing all the potential tax deductions, saving taxes might be a wise financial move. We shall now discuss tax deductions under the three sections. [B-01] Tax Under Section 80C Deduction for investments Deduction Limit: – ₹1,50,000 It is one of the most favored and well-liked areas for taxpayers. This is because you can reduce your annual tax liability by a maximum of Rs. 150,000. Investments Eligible for Deductions and Tax Savings Under Section 80C Life insurance: It consists of tax-deductible premium payments. The taxpayer makes the deposits for all the needed life insurance plans. This safeguards your life and also reduces taxes in certain areas. Sukanya Samriddhi Yojana: It is a welfare program for girls that qualifies for a tax deduction. Equity Linked Savings Scheme: It’s a mutual fund investment. The plan has a fixed lock-in period and offers market-linked returns. Public Provident Fund (PPF) Employees’ Provident Fund (EPF) 5-year tax-saving Fixed Deposits (FDs) Senior Citizen Savings Scheme (SCSS) National Savings Certificates (NSC) Tuition fees were paid for two dependent children. Repayment of the principal balance of a mortgage, etc. This reduction for real estate purchases is available for individuals and HUFs. Corporations, partnership businesses, and LLPs are not eligible for this deduction. The total greatest deduction allowed under sections: Each 80CCE, 80CCE-1, 80CCE-2, and 80CCE-3 costs Rs. 150,000. Tax Under Section 80D Deduction for: health insurance policy premiums paid Deduction Limit: Subject to Specific Conditions Health insurance coverage for: For family (spouse and dependent children), an amount of ₹25,000. For a family including parents, the amount is ₹50,000. For a family (below 60 years of age), parents (above 60 years of age), and oneself, an amount of ₹25,000 + ₹50,000 = ₹75,000 For a family (with members above 60 years), senior citizen parents, and oneself, an amount of ₹50,000 + ₹50,000 = ₹1,00,000 For health checkup costs under Section 80D, a tax credit of 5,000 is also available. The exemption for physicals includes the 25,000 rebate on health insurance. A premium rate of 20,000 reimbursements may be available to people who paid 5,000 for medical exams. Tax Under Section 80G Deduction for: money given to charitable organizations Deduction Limit: As stated in the section, either up to 100% or 50% with or without restrictions. The Government of India offers tax deductions under Section 80G. This way, it expresses gratitude to the ones who pay taxes. Individuals, corporations, and firms can all deduct it. Section 80GGA permits tax deductions for certain contributions. The contributions made in support of Rural development Scientific research projects. Donations with a tax 100% deduction Fund set up by a State Government for the poor for medical relief. National Illness Help Fund National Blood Donor Council or State Blood Donor Council The Army Central Welfare Fund. The National Trust for the Welfare of Persons with Many Disabilities National Sports Fund National Cultural Fund Fund for Technology Development and Application National Children’s Fund Chief Minister’s Relief Fund about any state or union territory. National Defense Fund by the Central Government Prime Minister’s National Relief Fund National Foundation for Communal Harmony An approved university or educational institution of national eminence October 1, 1993, and October 6, 1993. Maharashtra’s Chief Minister’s Relief Fund Swachh Bharat Abhiyan (applicable from the financial year 2014-15) Funds to Clean Ganga (applicable from the financial year 2014-15) National Fund for Controlling Drug Abuse (applicable from the financial year 2015-16) Chief Minister’s Earthquake Relief Fund, Maharashtra Any fund established by the state government that aids earthquake victims The Prime Minister’s Armenia Earthquake Relief Fund Africa (Public Contributions—India) Fund Donations with a 50% tax deduction Prime Minister’s Drought Relief Fund Jawaharlal Nehru Memorial Fund The Rajiv Gandhi Foundation Indira Gandhi Memorial Trust On adjusted gross income, the following charities are eligible for 100% tax deductions. Donations result in a 10% reduction in the tax amount. The government or any approved local authority, institution, or association promotes family planning. Donations to the following organizations are eligible for a 50% deduction. For adjusted gross income, they are subject to a 10% reduction. The government or any local authority for any philanthropic endeavours. But this doesn’t include family planning. Any other institution or fund that complies with Section 80 G’s requirements Any company listed in Section 10 (26 BB) for the interests of the minority community. Any organization established in India with the mandate to address the need for a residential area in the city or village or to repair or renovate any public building. [B-02] Conclusion A tax deduction is a beneficial provision made on the taxpayer’s total gross income. The Income Tax Act of 1961 contains many clauses that include tax deduction schemes. The one that offers tax deductions for investments is Section 80C, and it is the most well-known of them all. Then two other parts provide tax advantages for medical bills. They also provide gifts to charities. The two significant parts are sections 80D and 80G. To make greater use of these tax benefits while submitting your ITR, be sure you understand them! As a result, Section 80’s coverage of these sections allows you to reduce your tax liability. You can deduct taxes from your taxable income if you have these. The tax obligation decreases as the income decreases. Use these areas for your needs to avoid paying taxes with your hard-earned money. For further details, you can visit Piramal Finance. Piramal Finance provides excellent financial services and advice.

08-11-2023