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Home Loan

Home credit loan application: Everything you should know before applying

Loans from Home Credit provide quick, simple, and secure access to money. A credit provides the customer with money that can be used as needed, whether that be using the entire amount borrowed, a portion of it, or nil. A loan, on the other hand, delivers all the money asked at the time it is granted. Credit allows you to access the amount of money provided based on your needs at any given time, making it a more flexible sort of financing. The maximum amount of money that the customer may use in whole or in part is determined by the credit. The consumer has the option of using all of the provided funds, some of them, or none of them. [B-01] What is a Home Credit Loan? Home Credit personal loan features minimal documentation and quick disbursal. They make funds accessible in an easy and faster way. They provide a helping hand when one needs money to meet certain financial requirements. The loan can be availed at affordable interest rates. The interest is charged based on repayment, ranging from 19% to 49%, along with a processing fee of 0-5%. The repayment duration is 3 years Eligibility Criteria The following documents are required for the application for Home Credit Loan: PAN Card The applicant must submit it as proof of identity. Indian citizenship The applicant must submit proof of residence, such as the Aadhaar card Banking facilities The applicant must have an active bank account with net banking facilities. Age The minimum age of the applicant should be 19 years and above. Customers below this age are not eligible to apply for a home credit loan. Income The applicant should have a minimum income of INR 10,000/- to be eligible to apply for a home credit loan. Features of home credit loan: Customers can avail of a loan up to Rs. 5 lakhs The borrowers can withdraw an amount up to Rs. 5 lakhs easily by applying for the loan. It is hassle-free and one of the easiest methods available to customers. No collateral or guarantor required It is not necessary for the applicant to provide a collateral or guarantor as security, to be able to withdraw a home credit loan. Quick Approval The loan gets approved instantaneously, which is the fastest method. Minimal documentation There are paperless transactions with minimal documentation as the applicant does not have to submit any hard copy of the documents for the verification process. Only digital/ soft copies are required to be submitted. Disbursal within hours. The applicant is provided with instant cash to adhere to his urgent financial requirement. There is no time delay. Multiple Repayment options There are multiple repayment options provided to borrowers at their convenience. They can choose a mode that is the most suitable for them. There is a flexible repayment schedule for the home credit loan. The applicant can choose a suitable repayment schedule according to their convenience. Open availability The loan is available to all types of applicants. The borrower need not be an existing customer of the company. Tax Advantages Tax advantages are yet another significant perk you can take advantage of when applying for a house loan. You may deduct up to INR 1.5 lakhs from the principal amount, registration fees, and stamp duty costs of a housing loan under Section 80C of the Income Tax Act of 1961. Each borrower in a shared house loan may receive up to INR 1.5 lakhs per year (if they are also co-owners of the property). Principal distinctions between a credit and a loan: Typically, a credit card has a greater interest rate than a loan does. The undrawn balance may be subject to a minimum fee even though interest is only paid on the amount that has been spent. As money is returned, more money becomes available as long as the cap is not reached. When a borrower is approved for a line of credit, a bank or other financial institution gives them a predetermined credit limit that they can use in full or in part repeatedly. This changes it to a revolving credit limit, a considerably more flexible kind of borrowing. Unlike loans, they can be used for any purpose. How to Submit an Application for a Home Credit loan? Follow the given steps to apply for the same: Step 1: Visit the website Step 2: Type in your name and phone number and press the “Apply Now” button. Step 3: The loan application window will open in a new tab. Step 4: After that, select the “Want to Apply” button that is there on the page. The next step will open a brief form that asks for your name, email address, and mobile number. Step 6: Complete the pertinent information and click on “Continue” Step 7: After receiving this request form from Home Credit, a member of the team will contact you with a customized estimate. Step 8: After that, you can choose the best strategy and complete your loan application. Step 9: Immediately after your loan is approved, the money will be deposited into your bank account. [B-02] Conclusion Home credit loans are the easiest and most efficient ways to withdraw loans for reasonable amounts. The loan is accessible to existing as well as new customers. The applicants have to go through a very simple and easy application process. The mode of repayment is also very customer friendly. Piramal Finance will give you excellent guidance while applying for a home credit loan. You can visit our website for further details and queries. It’ll be our sincere pleasure to be at your service.
08-11-2023
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Tax Savings

How National Savings Certificates can Help in Tax Benefits & Eligibility

The National Savings Certificate (NSC) is a fixed-rate savings instrument that can be held with any public bank in India. It offers interest rates of 6.8% per annum currently. There is no minimum or maximum investment amount for NSC. While you can open your NSC account, there are also many schemes out there which offer higher interest rates. [B-01] Who is eligible to apply for an NSC? NSC can be opened by any citizen of India. However, the rules for opening an NSC account may vary from person to person. You should check whether you qualify for an NSC account or not before applying for one. If you are a resident: You must have had an annual income of less than Rs 1 lakh (or the equivalent amount in foreign currency) per annum during the last 3 years. But the income should not be more than Rs 10 lakhs in total at any point of time over 5 years preceding your application date. Your assets should not exceed Rs 50 lakhs at any point of time over the 5 years preceding your application date. This includes cash held with banks/financial institutions. When can NSC be bought? NSC can be bought by individuals, HUFs, firms (including co-operative societies), trusts and educational institutions. NSC can be purchased on the first day of every month for the current calendar year. You can also open an NSC account before that date. In this case, you should use your previous month’s balance as a base for calculating interest for the next month. If you do not have any money in your account then you will get a refund from the bank. This refund will be processed after deducting Rs. 10 from every Rs. 100 deposited in it. This will be done until the time they are fully used for NCRS tickets etc. How much can you invest in your NSC account? The maximum amount that can be invested in an NSC online account is Rs. 1.5 lakhs per financial year. However, if you are married or have children, the limit will grow to Rs. 2 lakhs per year. You can also open a joint account with your spouse. Here both of you will contribute towards it and manage the assets jointly. But only one person needs to invest his/her entire contribution of Rs 1.5 lakhs into this account (i.e., not partial contributions). How many accounts can you open? You can open multiple accounts. For example, you could have a savings account and an investment account with the same bank. You can also open an additional account for your child if they are over 18 years old. If you’re married or in a civil partnership, it’s possible to open another NSC-eligible savings or investment product under both names. This will be subject to the same eligibility criteria. What is the interest rate on NSC? The interest rate on NSC is decided by the government. The interest rate is subject to change every quarter. The amount of interest credited to your account varies depending on how much you have in your account at any given time. At present 6.8% return is being provided. The daily calculation of interest rates is done by an algorithm that takes into account several factors including: – Your balance as at the end of each day; The prevailing market rate for treasury bills; and Other variables such as inflation and GDP growth (if applicable).Are there any tax benefits with regard to National Savings Certificate (NSC)? You can claim a tax deduction on the interest earned on an NSC account up to a maximum of Rs 1 lakh per year. You can also claim a tax deduction on the maturity value of your NSC account at any time during its lifetime; this will be added to your income and taxed accordingly. Important points to remember about NSC These are some extremely important points along with all the other points discussed to remember about NSC: – The National Savings Certificate (NSC) is a savings account that can be used for short-term financial needs. It has a 6.8% interest rate, which is higher than the nationalised banks’ fixed deposit rates. The NSC account is available to residents of India who have an Aadhaar card and can open an account with any bank or post office branch in India. You also need to be at least 18 years old to open an NSC account with Public Limited Company Bank Ltd., State Bank of Travancore Ltd., State Bank of Patiala Ltd., Punjab National Bank Ltd., and Oriental Bank Of Commerce Pte Ltd. If you leave your NSC account uninvested, the interest will remain in your account until it matures. If you don’t repay the entire amount by maturity or otherwise, the remaining amount will be paid out to you. If you choose not to reinvest or spread out any dividends from an NCR bond, then no interest will be earned on these bonds until they mature and are repaid in full. NSC for long-term goals Investing in a national saving certificate (NSC) is a good way to save for your long-term goals. NSCs are low-risk investments with tax-free interest. It’s not just limited to one account like an endowment savings scheme or unit trust. You can open multiple NSC accounts and earn interest on them, which makes it easier to track your savings over time. When you invest in an NSC, the interest is paid out as regular income each year. So, if you have been investing for five years and withdrew all your funds before they matured then there would be no capital gains tax due! This means that even if the value of your investment increases during its term there will still be no capital gains tax payable when withdrawing from the scheme at maturity! [B-02] Conclusion National saving certificates are a great way to save for your future. You can hold on to them for as long as you like and the interest earned on them is exempt from income tax. You do need to keep a minimum balance of Rs 1,500 in your NSC account at all times or else it will be automatically debited by the bank. One can use various NSC calculators twitch is present online to understand the returns that they will get after a period of 5 or 10 years. To learn more about different financial topics like NSC, see the blogs on Piramal Finance that will help you know about each of these topics thoroughly.
08-11-2023
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Business Loan

How a Loan Against Property is Beneficial for Small Businesses

Many businesses start as small businesses, and as they grow, so do their loan needs. In today’s economy, banks don’t give loans to small businesses because they are afraid that they will go bankrupt and then the bank will lose money. Fortunately, there is an excellent way for small businesses to get the funding they need: a loan against property. These transactions are not new, but their use has risen recently because of the challenges borrowers face in obtaining bank loans. Loans against property transactions offer a low-cost and fast alternative source of money because they are easier to obtain. The most important things to remember when deciding whether or not to apply for a loan against property are whether you can afford the monthly payments and if you need the money. A lender is just looking for a surety or security for their loan. [B-01] Benefits of Loan Against Property for Small Businesses: 1. The Quickest Form of Funding for Small Businesses: Loans against property are the fastest way to get funding, as they allow a borrower to get funding within a few days or weeks. Bankers will ask for some paperwork and information. They need your business plan, financial history, and credit score. This is why the business owner needs to have these things in order so that the application process can be finished faster. 2. No More Hassles with Banks: With a loan against property transactions, there is no more waiting in line at the bank for hours to find out that you are not approved for a loan. Banks also have a much stricter lending policy for this type of transaction because if the business cannot pay it back, it will be repossessed. In a property loan transaction, the bank does not know how you will pay back the money. The bank only sees the security and how long that security can be held by the lender without being touched. 3. Affordable Interest Rates: Loans against property transactions are affordable, and the interest rates are usually low. If you have excellent credit, your interest rate will not be as high as someone in the same field with just average credit. This is advantageous for small businesses because they do not have to worry about high monthly payments. The borrower does not have to make monthly payments for the entire value of the property used as collateral in a loan against property transaction. Borrowers only have to make payments on what they use or borrow from the lender, which can be between 5% and 25% of the total security value the lender gives. 4. Flexible Terms: In addition to low-cost and fast funding, lenders also offer flexible terms. The terms depend on the type of loan that the lender is offering and the repayment rate you are willing to receive. For example, if you are applying for a small loan, the lender might require high monthly payments. The only thing that needs to be done with a loan against property is for the borrower to keep making timely payments. 5. Easy Documentation: When a small business applies for a mortgage loan, the business owner will not have to worry about filling out lots of paperwork. The application process is a lot easier because they will only be asked for basic information. The lender will ask for documents such as title insurance, insurance policies, homeowner’s policies, and other similar documents. With this type of financing, business owners do not have to worry about all their hard work going to waste because it is easy and quick to get the funding they need without having to go through tons of paperwork. 6. Long Repayment Tenures: With a loan against property, the business can get funds much quicker than traditional bank loans. Due to this, borrowers have more time to pay the money back. The longer repayment period makes sure that there are no long-term consequences when borrowing money. [B-02] Conclusion Loans against property transactions are helpful for small businesses because they can obtain additional funding without waiting a long time. Borrowing from banks can be very difficult because most small businesses do not have the funds required for the process. A loan against a property makes it easier for these people because the application process is easier and quicker. If you need help with finances or your loan against property, you can take the help of experts at Piramal Finance. They can give you all the help that you need. You can visit their website to learn more about their services.
08-11-2023
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Tax

Key differences between old and new tax regimes you need to know in 2022

The budget for the financial year 2022-23 did not bring any noteworthy change in the existing tax slabs introduced in the pre-COVID budget released in 2020. The pandemic has changed how taxpayers choose their tax slabs based on their potential, practical and immediate requirements. With the new tax regime, the tax rates were reduced significantly. [B-01] Difference between old and new tax regimes As compared to the old tax regime, the new tax regime has more tax slabs. New tax regime slabs divide the taxpayers into more diverse income groups. Along with this, the new tax regime gives concessional tax rates for different slabs. The tax rates, according to slabs, are lower than the old tax regime. The deductions and exemptions given under the old tax regime are not available in the new regime tax slab. Why do you need to understand the difference between old and new tax regimes? The income Tax department gives the option of choosing between the new tax regime and the old tax regime for taxpayers. Many of you might be one of the people who are confused about which one to opt for. There are some basic differences between the old and new tax regimes. What you need to decide is which one is more beneficial to you after a detailed analysis of factors like deductions, exemptions and slabs of the tax regime. Difference between old and new tax regimes for taxpayers with higher income People falling under the higher income category might find the old tax regime more beneficial. The old tax regime offers many exemptions and deductions, which will prove to be beneficial for you. The new tax regime offers some deductions or exemptions. Difference between old and new tax regimes for taxpayers with lower income If you fall under the low-income group, then you might want to opt for the new tax regime. The new regime tax slab has variety. In the old tax regime, the tax slab was the same for the people falling under the income group of 5,00,000 and 10,00,000. However, this has changed in the new tax regime. This means tax savings for the lower-income group in the new tax regime. Tax rates under slabs of the old tax regime In the old tax regime, the tax slabs were not diversified as the ones in the new tax regime. Income below 2,50,000 is not taxable. The income between 2,50,000 and 5,00,000 is taxable up to 5%. People in the 5,00,000 to 10,00,000 income group fall under the 20% category. Anyone above 10,00,000 falls under the 30% tax rate slab. Tax rates under slabs of the new tax regime The new tax regime has far more diversified tax slabs. It has more tax rates according to income groups. For example, the new tax regime has introduced tax rates of 10%, 15% and 25%. Earlier, it was divided into 5%, 20% and 30%. Now, it is divided into 5%, 10%, 15%, 20%, 25% and 30%. A comparison table to understand rates under old and new tax regimes: Tax slabsRates under the old tax regime in %Rates under new tax regime in %0-2,50,000NilNil2,50,000-5,00,000555,00,000-7,50,00020107,50,000-10,00,000201510,00,000-12,50,000302012,50,000-15,00,000302515,00,000 and above3030 Deductions and exemptions in the old tax regime While the tax rates are more diversified in the new tax regime, the old tax regime offers many options for deductions and exemptions. It helps you if you want to reduce your tax liability. The Income Tax Act gives taxpayers around seventy tax exemptions and deductions. It allows taxpayers to lower their income tax. To lower the income tax, you can choose deductions and exemptions like: Savings. Investment. Spending on select items. Loans. Allowances. Insurance, etc. Exemptions are the allowances that you receive as a part of your salary. It includes the house rent allowance, travel allowance, leaves allowance, etc. You can claim up to fifty-thousand rupees (50,000) under House and Travel allowances. Along with this, you can also claim tax deductions under Section 80C on housing loans, specified pension funds, medical insurance, NPS contribution and investment. You can claim up to Rs. 1.5 lakh under Section 80C. Deductions and exemptions in the new tax regime The new tax regime does not provide any deductions or exemptions in its rules. However, the government has retained a few exemptions: Transport allowance for specially-abled. Conveyance allowance as part of the salary. The compensation received on travel, tour or transfer. Daily allowance incurred due to absence from a regular place of work. Deduction under 80JJA. Deduction for employer’s contribution in NPS account under Section 80CCD (2). Which tax regime is better for you? You have to decide which tax regime gives you better benefits. If the deductions and exemptions of the old tax regime are more beneficial than the lower tax rates of the new tax regime, then you can choose the old tax regime. However, if it is the opposite case, then you can opt for the new tax regime. It needs careful consideration of various factors like, Your income. Income composition. Source of income. Exemptions you can claim. Deductions you can claim. Investments. Savings. Loans. Insurance and Pensions. Tax rates in the old tax regime slab and new regime tax slab. [B-02] Loans are some of the most used modes of saving taxes in India. The Income-Tax Act of India allows you to avail of tax deductions with select personal loans. With so many choices in the market, it is tough to decide which one to get. However, you can get a hassle-free and quick personal loan with Piramal Finance personal loans. With its zero pre-payment and foreclosure charges, you can get your dream car, holiday, wedding and much more. Not only this, but you also get advice from experts on our team who helps you throughout the process.
08-11-2023
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Income tax return

Everything You Should Know About Income Tax Returns

If you are a taxpayer in India, you may have heard about Income Tax returns. If you are aware of Income Tax returns, that’s good, but if you don’t know what an income tax return is, you might be paying more in taxes than your actual taxes. So, what is an Income Tax Return? Income Tax Return or ITR is a form in which you submit all the information about your annual income from all the sources, tax deductions that you are eligible for, and taxes that you have paid on your income. Moreover, this information is processed by the Income Tax Department of India. And, if you are eligible for a tax refund under the mentioned sections of the Income Tax Act, the IT department will credit your account with the refundable amount. However, the ITR filing is not a very simple process. While filing your ITR, you must declare your income, your tax bracket, and the sections of the IT Act that you want to take advantage of. [B-01] Is it important for you to file Income Tax Returns in India? Yes, filing an income tax return in India is mandatory if your income falls in any of the taxable income brackets. However, if your income falls under the non-taxable income bracket, you can avoid filing ITR returns. But if you fail to file your ITR on time, it will lead to a late payment fee. In addition, there can be other disadvantages to not filing an ITR or failing to file an ITR on time. One of them is the difficulty in getting loans. You may have to face loan application rejection due to the late submission of ITR returns. And if you are a travel enthusiast and love travelling to different countries, then it’s better to file your ITR returns on time. The reason for this is that a late ITR filing makes it difficult to obtain travel visas. Who is required to file an ITR? The Income Tax Act of 1961 clearly defines who is required to file an Income Tax Return. According to the IT Act, if an individual between the ages of 18 and 59 earns 2.5 lakhs or more in a single fiscal year, the individual is required to file the ITR. But to clarify every section, like individuals, companies, NRIs, etc., you can refer to the points below. Individual Below the age of 60 with an annual income of ₹2.5 lakhs or more. Above the age of 60 and below the age of 80 with an annual income of ₹3 lakhs. Above 80 with an annual income of more than ₹5 lakhs. Owning any form of asset in a foreign country. Who wants to carry forward losses from the past eight years to counter the tax eligibility? Registered Company Which generates money whether the company is profitable or not. NRI Earning or accumulating money above 2.5 lakhs in a financial year. How to file an Income Tax Return by yourself? In India, filing ITR returns is considered a very difficult task, and most people approach others to file ITR returns on their behalf. But no more dependency on others for your ITR filing because we covered all the steps for you in the simplest way possible. First, you should know about the ITR forms and the documents important for the ITR returns filing process. There are seven types of ITR forms for various categories. Moreover, these documents are required to fill out the ITR form. PAN Card Form 16A from the employer if the company collects TDS. Form 16B from the buyer if you sold out a property. Form 16C from the tenant if the tenant collects TDS on the rent. Bank statement Salary slips Interest Certificates to avail of benefits Proof of investments for tax savings Form 26AS Procedure to file Income Tax Return After the recent amendment to the Income Tax filing policy, the ITR returns filing procedure has shifted online. It means that you can file your ITR from the official website of the Income Tax Department. To file your ITR, follow these steps: First, register yourself on the official website of the Income Tax Department. (https://eportal.incometax.gov.in/iec/foservices/#/pre-login/register) Sign in to the portal by entering your login credentials and the CAPTCHA code. (https://eportal.incometax.gov.in/iec/foservices/#/login ) After that, choose the financial year and ITR form according to your category, and you will be sent to the main page to fill out the ITR form. Before starting to fill out the forms, read the directions carefully so that you can avoid any kind of mistake. Now, start filling in the details that the form asks for. Also, opt for eligible sections of the IT Act to make your taxes as low as possible and get a refund. Now, preview your ITR form attentively and submit it. After submitting the form, you will have to verify your ITR returns. You can either use your Aadhar card or the OTP that will be sent to your registered mobile number. You will receive an email and an SMS on your registered email and mobile number after the successful ITR returns filing. How to check the status of my ITR online? You can check your income tax return status on the same Income Tax Department website. There are two methods to check the status of your ITR returns. By using your acknowledgement number, you can use the acknowledgement number generated after the successful ITR filing. The acknowledgement number is sent to your registered email. Click on ITR status after signing in to the website. Fill in your acknowledgement number and get the status of the ITR returns. Using your login credentials: you can also simply sign in to the Income Tax Department website. The status will be visible on the dashboard. [B-02] The bottom line If you are a taxpayer in India, filing an ITR is just as important as paying taxes. However, it is also good for you to file ITR returns on time. You can get a refund of the excess tax you paid for a financial year by using various sections of the IT Act. There are a lot of sections that provide benefits to the taxpayers of India. You can deduct the interest of your loans from your yearly income, you can deduct the principal amount of the insurance from your income, and many more. However, you should know the right way to use all these sections. Now that you know the procedure and benefits of filing an ITR, you can apply for a personal loan from our website by clicking here, or you can also contact us at 18002666444.
08-11-2023
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Tax Savings

What is Income Tax Exemption on Gratuity?

Gratuity is a single-time payment made to the employee. It is a token of appreciation for their time and effort spent with the company. Gratuity is regarded as an appreciation for hard work. It is given to employees who have stayed with the company for over 5 years. It is a gift from the employer given to employees. The best part is that there is a tax exemption on gratuity too. Every employee wants recognition in addition to the base salary for the time and effort they put into the business. But is gratuity subject to taxation? You can learn the answer to this question by learning more about their eligibility, income limit, income taxation, and other details. The Income Tax Act provides for tax exemption on gratuity under Section 10, Subsection 4A. Only statutory gratuity is exempt from income tax. Any other payment in place of gratuity is not exempt from tax. [B-01] Gratuity and Tax Exemption The Income Tax Act offers a tax exemption for gratuity under Section 10, Subsection 4A. The terms “gratuity” and “gratuity” shall have the same meaning as in the Payment of Gratuity Act, 1972 (hereinafter referred to as “the 1972 Act”). The amount of gratuity payable by an employer to an employee shall be such an amount as is paid on termination. It is subject to some conditions laid down in Sections 10(2) and (3) of the Income Tax Act. In other words, it means that if you receive more than Rs. 10 lakhs then it will be taxable. However, if you received less than Rs 10 lakh, the gratuity is not taxable. This limit was recently increased to Rs. 20 lakhs under Section 10 (10). Gratuity in income tax should be read clearly to learn various key points related to it. . Only statutory gratuity is exempt from income tax Gratuity is a payment made to an employee for services given to the company. Tax exemption on gratuity is an added benefit, as it is not taxable as per the IT Act of 1961. In fact, gratuity has been exempt from income tax since 1961. The amount of gratuity that can be given in a year depends on the age at which you retire. Else, if you end your work with your employer under some conditions. If you retire before 5 years of ongoing service, then half of the amount would be exempt from paying taxes. If you retire after 5 years of ongoing service but before 10 years, then one-third of your income will be exempt from taxes. If you have 10 years of service, then two-thirds of the amount will be exempt from taxes. Any other payment instead of gratuity is not exempt from tax If you are a salaried employee, the gratuity that you receive as part of your salary is taxable. However, this does not mean that all other payments in place of gratuity are also taxable. Only those payments that have been made to employees who have retired or left their jobs are subject to tax at source (i.e., on their wages). The following examples should help clarify. A company pays its staff an annual bonus based on performance during the financial year. This payment is exempt from income tax under Section 80C(6)(a)(ii). This means that it does not require any TDS because it falls under Section 80C(6)(a)(ii). Hence, no tax has been deducted from the salary under Section 80C(2) or deducted against his or her income by way of creditable tax under Section 11A. If Gratuity is Taxable It is vital to know whether the tax exemption on gratuity is applicable or not. If it is taxable, you have to pay tax on it. If it isn’t taxable, there will be no need for you to pay any taxes on it. If you are unsure about the provisions, you can seek the assistance of a CA or CFP. Remember that if your income is less than Rs. 15 lakh per annum, it is likely that your gratuity will be exempt. However, if your salary exceeds Rs. 15 lakh per annum, there is no need for further compliance. The provisions of the Income Tax Act will take care of all needs for tax exemption. [B-02] Conclusion Gratuity in income tax is one of those rewards that you get for your hard work and loyalty at a company. If you have spent five years at a particular place, you deserve some recognition. A tax exemption on gratuities is a great way to recognise this. Tax exemption on gratuity is an excellent benefit one should not miss. There are gratuity calculators available on Piramal Finance that will help you calculate your gratuity. You can also read about various other topics that will help you learn about various financial topics.
08-11-2023
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Personal Loan

How can you get a personal loan without any fee?

In simple terms, a personal loan means a loan that is facilitated by the bank to give you instant cash flow when you are in financial need. It is a kind of personal loan without a processing fee. Usually, when you require immediate finance for trips, weddings, education, family problems, or health issues; you can go for online loans without processing fees. These loans will not require you to furnish any collateral, such as gold, bonds, shares, or property deeds. Plus, the banks will not ask any questions as to why you require the personal loan. Personal loans without processing fees grant you an unsecured line of credit and thus require very little time to get processed. Since you don’t need to show any personal guarantee for these kinds of loans, the grant of this loan depends on several other factors, which we will discuss further in this article. The advent of fintech and the availability of the internet everywhere enables you to apply for a loan online and receive this amount without the hassle of going to the lenders physically. These loans are instant loans without any processing fees. These tech-oriented loans help in getting your loan processed without ever going to file your physical documents. [B-01] But, getting a personal loan depends on several factors. The below-mentioned factors are some crucial ones that you need to remember in case you want a personal loan without processing fees. 1. Maintain high credit score – Personal loans without processing fees are a form of loan that is given without guarantee. Thus, the lenders of these loans emphasise the credit score of the borrower. This means that they will look at how high your credit score is and establish your credibility accordingly. Maintaining a high CIBIL score is an indicator of your responsibility as a lender. The fact is simple: the higher your credit score, the faster and easier your instant loan without processing fees will be granted. You should always keep an eye on your CIBIL score. The best part is that if you keep a good credit score, you may not even need to provide your profit or salary details, and your loan will be approved. A CIBIL score of 750 and above is good for getting your loan processed easily. 2. Pay your debts on time – You should always pay back your dues on time. It means that you should always keep an eye on the deadlines by which you have to pay back the money. Always keep a record of your credit card bill, EMIs, and other borrowings. This will enable you to pay back these bills on time. When you maintain a good track record for paying back the money, it establishes a rapport with the lender. When you default on your payments, it establishes a negative image in front of the lender. It means that they will ask for additional documents and take a lot of time to process your personal loan without charging a processing fee. 3. Maintain a good relationship with the lender – You should always maintain a good relationship with your lender. Whenever you want to take an instant loan without paying a processing fee, you should always choose one lender. A long-standing relationship with the lender will help you get your loan processed easily and without wasting any time. The long-term relationship establishes your moral credibility with the lender and thus enables you to get cash immediately. 4. Debt-income ratio – This is a highly deciding factor regarding the grant of your online loan without a processing fee. The loan that you are asking for should be at least 50% of or less than your total income. Only then can it be considered a favourable debt-income ratio. The lower this ratio, the better your ability to repay the loan will be. An ideal debt-to-income ratio should be below 50% to get your loan approved smoothly. 5. Avail a pre-approved instant loan without a processing fee – There are several lenders like Piramal in the market that grant a pre-approved online loan without any processing fees. It means that there will be minimal documentation and a waiting period involved in getting your loan approved. Usually, these pre-approved loans are specifically designed to cater to your needs and thus require no documentation at all. Although there are some crucial things that you need to keep in mind before getting your personal loan without a processing fee, they are: Always check the EMI that you will have to pay for repaying the loan. You can check this using an online personal loan EMI calculator. Checking the EMI amount ahead of time will help you understand whether you will be able to repay the amount on time. If you can’t repay the EMI in time, then you will default on your payments, which will negatively impact your CIBIL score. You should always go for the lender that grants you online loans and approval. You must check that the whole process will be done online. Nobody wants to get stuck in the hassle of getting the loan physically approved. Go for the lenders that have the best and easiest mechanism to approve the loans. [B-02] Conclusion The need for financial help can arise at any time. There can be any sort of emergency where you may require a loan. But, in today’s day and age, it’s impossible to resort to physical loan mechanisms. You should select lenders who can process an instant loan with no processing fee using online mechanisms. The documentation, credit score check, and repayment capacity should all be checked through the internet so that the borrowers are never subjected to unnecessary struggle. This is why it becomes crucial that you choose lenders like Piramal because we are the best in the market in terms of processing personal loans, and we understand that the need for money may arise anytime.
08-11-2023
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Tax Savings

Investments to save tax under Section 80C

Investments are the best way to multiply the value of your assets, increase your worth, and improve your financial security. But, when it comes to tax saving, you might get confused about the options that you should opt for. Saving tax on the investments you make will reduce financial distress and encourage you to invest more profoundly. Then a question might pop up in your mind – “What are the best tax-saving investment options that one should opt for under section 80(c) of the Income Tax Act, 1961?” While tax saving might seem like a lucrative scheme, you also need to keep in mind the security, safety, and returns. A smart approach towards tax planning is to start investing in the early quarters of the financial year. This will provide you enough time to plan your tax and help you reap the maximum out of the investment plan. This article will let you know about section 80(c) of the Income Tax Act, the best tax-saving investment options, and the right approach to avail maximum out of different schemes. [B-01] Understanding the provisions under Section 80(C) of the Income Tax Act, 1961: Out of all the sections that are based on tax-saving investments, most plans function under the parameters of section 80(c). There are other sections related to tax saving as well, but the most prominent is this section. According to section 80(c), an investor is allowed tax exemption up to 1.5 lakh rupees for the investment he or she makes. If you invest in some specific schemes, you will be exempted from paying tax, up to the aforementioned maximum limit. The different investment schemes are Equity Linked Saving Schemes or ELSS, Public Provident Funds or PPF, Fixed Deposits, Life Insurance, National Savings Schemes, National Pension Schemes, etc. We will be discussing all of these tax-saving investment schemes in detail in the coming part of the article. What are the different tax-saving investment schemes that you should invest in? There are many to name, but here we are going to mention the 5 best tax-saving investment schemes to help you reap the maximum benefits. Equity Linked Saving Scheme or ELSS: This is considered one of the best tax-saving investment options to help you save more tax and reap bigger benefits. They help you get dual tax benefits and receive higher returns on investment. You can save up to 46 thousand rupees by investing in ELSS for the lowest locking period. The locking period is about 3 years only. In addition, ELSS delivers more returns than Public Provident Funds, and Fixed Deposits and the interest you earn is partially taxed. Fixed Deposits or FD: Besides being one of the safest options for investment to yield higher returns, Fixed Deposits are eligible for a tax break of up to 1.5 lakhs. Any individual resident can open up a fixed deposit account and the lock-in period is about 5 years. It has a low rate of interest which is about 5 per cent to 7 per cent per annum. On top of that, it is a risk-free, tax-saving investment option where the minimum investment amount is as low as 1000 rupees. Public Provident Fund or PPF: Public Provident Funds are a government-approved investment scheme where you invest money for a long tenure and break it after maturity. You get some tax benefits by investing in PPF under section 80(c), like the interest you earn from the corpus is tax-free. The lock-in period is about 15 years, which you can extend to 5 more years and partial withdrawals are allowed after 7 years. The best part is the minimum investment limit in this tax-saving investment option is only 500 and the interest rate is around 7.1 per cent per annum. Employee Provident Fund or EPF: EPF is a very good, retirement benefit, and tax-saving option for salaried individuals whose monthly salary is 15 thousand or above. The most significant advantage is that the entire PF including the interest you earn is exempted from tax provided that you withdraw after continuous service of 5 years. The interest rate is 8.1 per cent for the year 2022 and you only have to contribute a minimum of 12 per cent of your basic pay and your dearness allowance. National Pension Scheme or NPS: It is a tax-saving investment scheme that ensures the financial security of both the employees of the unorganised sector and working professionals post-retirement. There are two tax benefits of investing in NPS: Investments up to 1.5 lakh rupees can be used rightly to avail tax benefits, which comes under section 80(c). An additional deduction of about 50 thousand rupees is also applicable on investments made under the provisions mentioned in section 80(c). With that, the return rate is quite promising, which is around 9 per cent to 12 per cent per annum. There is no maximum investment limit, and all employer contributions are exempted from tax, provided that you put 10 per cent of your salary including your Dearness allowance. [B-02] In a nutshell: Section 80(c) under the Income Tax Act of 1961, exempts investors from taxes and promotes them to invest more to reap maximum returns. The provisions help you in tax saving, but most importantly, the whole mechanism works better when you are efficient at tax planning. There are several tax-saving investment schemes mentioned above with different outcomes. You should compare different options and see what suits your investment criteria.
08-11-2023
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Know More

Top Benefits of Funding This Festive Season With a Personal Loan

Let us first learn what a personal loan is. A personal loan has no security or collateral. It has a minimum amount of documentation and a fixed duration to repay the loan. It is not a secured form of a loan, and payments have to be made every month. The most awaited festive season is here. From October to December, it is all about the rush and celebrations. This article helps us understand how the festive season affects loan criteria. How to apply for a personal loan, and what the benefits are. Financial firms, as well as online retailers, frequently create alluring incentives to entice customers. The market is swamped with sales and promotions on durable goods, Zero Charge EMIs, bank card EMIs, software loans, rewards, lines of credit, home mortgages, personal loans, etc. Although many discounts and deals appear pretty tempting, it is important to be sure they help customers spare money before taking advantage of them. [B-01] BENEFITS OF FESTIVE LOAN Here is a list of key benefits you can get while taking a festive loan or personal loan. Goods at a Reduced Rate Between Ganesh Chaturthi till the closing of Diwali, practically all internal and external retailers offer special discounts and deals. Most banks and Other financial institutions provide similar reductions in operational costs and mortgage rates. Suppose you had been considering an expensive brand or perhaps a sizable credit, much like a home or auto loan. Now might be the ideal time to take those advantages. Cashback Promotions On transactions made using payment cards, many retailers provide rewards. Founder credit cards come with enticing cashback bonuses from online retailers. Reduced Tax Rates Lower rates of interest are available on individual, auto, and house loans from several top banks and financial institutions. This is due to the strong need for these mortgages during the festivals when it is lucky to purchase pricey and significant items. Financial firms attempt to take the largest possible stake in the market by exploiting the demand growth and establishing attractive interest rates. Processing fee reductions Another annoying price that bankers and NBFCs charge customers over the holiday season is the service charge. Due to the type of loan, the processing charge could be anywhere from 0.25 to 6 per cent of the total loan balance. No collateral required: The best thing about a personal loan is the lack of collateral. With no security asked, it saves one from all the hassle of extra paperwork and proofs. Immediate Renewals Since customers prefer to receive product deliveries on religious holidays such as Diwali Puja, Durga puja, etc., financial firms strive to hasten the personal loan procedure. Aids in Improving Credit Scores Taking out mortgages and bank card EMIs and promptly returning them will aid in enhancing your credit rating. So, you can utilise it to create your creditworthiness if you’re attempting to raise your overall credit record plus receive favourable offers for lines of credit. HOW TO APPLY FOR A PERSONAL LOAN? The following process can be helpful to apply for a personal loan: Check the online website Fill in the necessary criteria needed in the form: Name Email address Phone number Loan Amount State/ City Submit the form After submitting the form, the lender/ loan company will get in touch with you for further processing. (The process varies) The lender starts a verification process as soon as the needs and documentation steps are finished. A Small Personal Loan is paid faster to your registered bank account after completion. OFFERS YOU CAN’T RESIST Let’s understand how Piramal Finance helps in these festivities. The main features of the festive loan in Piramal Finance are given below. Easy and flexible repayment plans with periods ranging from 12 to 60 months. The Loan amount ranges from Rs 1 lac to Rs 10 lakh. The loan is sanctioned quickly and immediately disbursed to its user. They have no advance fees for loans. EMIs for personal loans are pocket-friendly. There will not be minimum documentation for personal loans. It becomes easy for users to apply. A low-interest rate on loans for people applying for personal loans. They have zero foreclosure charges. [B-02] THE KEY TAKEAWAY The most awaited time of year is from October through December. Applying for a bank loan over the holiday season is a positive step toward achieving your goals. It has many merits for a person or family. As far as you are accepting a loan after evaluating your needs and ability to return it on time, it is not necessarily a “negative idea.” Determining the precise amount you preserve is critical and looking for additional fees is critical. If you’re financially stable enough to pay back the loan effortlessly and are confident of your capacity to maintain your financial discipline. Reaping the benefits of the festival deals and lending to purchase something you genuinely require during the holiday may sound right. Be wise with your money and make the best out of these festivities. Get in touch with Piramal Finance to examine your finances. For any queries, You can also visit https://www.piramalfinance.com/personal-loan.
08-11-2023
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