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GST

All you need to know about goods and services tax (GST) in India

Goods and Services Tax or GST is a comprehensive indirect tax that is imposed on the sale of goods and services in India. It is a multi-stage taxation system that curbs the cascading effect of all other indirect taxes such as service tax, purchase tax, value-added tax, and excise duty. The good service tax is the only tax that is currently imposed across India. While there are quite a few products and services that don’t attract GST, there are many that come at 5 per cent, 12 per cent, 18 per cent, and even 28 per cent GST. Since the implementation of GST in July 2017, the GST rates have been changed for several goods and services. [B-01] How Goods and Services Tax is Paid The manufacturer of a product first pays the Goods and Services Tax on the purchase of raw material and the value that it adds to make the product. The service provider would be responsible to pay this. The retailer will then pay GST on the product that he purchases from the distributor as well as on the margin that he adds. Finally, the consumer pays GST on the product that he purchases. However, the manufacturer’s tax payment as well as the retailer’s tax payment would be deducted from the total GST that is finally paid. Types of Goods and Services Tax in India After the implementation of a one-nation, one-tax regime, there has been a three-fold breakup of GST. This is mainly to allow the Central Government as well as the State Governments to levy taxes. The three types of GST implemented in India are: SGST or State Goods and Service Tax: This is the tax levied by the State Government on intra-state goods and service transactions. In Union Territories like Chandigarh or Andaman and Nicobar Islands SGST gets replaced by UGST or Union Territory Goods and Service Tax. CGST or Central Goods and Service Tax: This is levied by the Central Government on intra-state goods and service transactions, along with the SGST or UGST. The revenues generated by CGST would be shared between the central government and the state government. IGST or Integrated Goods and Service Tax: This is also levied by the Central Government but on inter-state goods and service transactions. IGST is applicable to import and export transactions too. Like CGST, IGST’s revenues also will be shared between the central government and the state government. Who is supposed to register for Goods and Services Tax? As per the Goods and Services Tax Act of 2017, any business that has a turnover of INR 20 Lakhs (10 Lakhs in North-eastern and Hill states) or above has to register for Goods and Services Tax. Apart from this, the following individuals and entities also are required to register for GST and acquire their 15-digit GSTIN: Individuals who supply taxable goods and services to other states. Individuals who are paying tax under the reverse charge mechanism. NRIs or Non-Resident individuals who are paying tax. Individuals who are eligible for tax deductions under Section 37. E-commerce aggregators. Individuals who have been supplying taxable goods and services via e-commerce aggregators. Agents who have been supplying goods and services on behalf of other registered taxpayers. Individuals who were registered before the introduction of the GST law. Registration of GST GST registrations should be done on the official GST portal that has been created by the Government of India. Once registered, the applicant will get GSTIN, which is a unique 15-digit registration number. The GSTIN can be used to avail loans, claim refunds, make corrections, and get verifications. Apart from GSTIN, the registered taxpayer will also get a GST Certificate that can be downloaded from the GST portal. How to File GST Returns Every registered taxpayer will have to submit a document called GST Returns. This will include information about their income, which will be used to compute their tax liability. It should contain details about their purchases, sales, input tax credit, as well as output GST. The GST Returns have to be filed twice a month and also two additional times a year. How is Goods and Services Tax calculated? Calculating GST while filing your returns is quite a tedious process. There are several things you need to consider, including the ITC, reverse charge, as well as exempted supplies. If you don’t pay the full GST amount that is due, you will be required to pay an 18 per cent interest on the outstanding amount. Luckily, there is a GST calculator that you can use to calculate the Goods and Services tax you have to pay. Many GST services websites have this feature. Once you enter all the required details, the tool will calculate the amount of GST that you have to pay in that month. You have to file GSTR-1 and GSTR-3B. For refunds, you will have to submit the relevant forms. You can pay GST either online or offline. However, a challan needs to be generated once you have made the payment. Advantages of GST GST curbs the cascading impact of tax. Only businesses with more than Rs. 20 Lakh turnover will have to register for GST. Small businesses can reduce taxes by using the Composition Scheme. Easy and simple online payment procedure. Fewer number of compliances. No more differential treatments for eCommerce organizations. Higher efficiency in logistics with lesser restrictions on inter-state goods movement. Regulation of unorganized sectors. [B-02] The Conclusion The implementation of Goods and Services Tax has changed the way businesses have been operating in India. With the processes being streamlined, many businesses are experiencing higher efficiency in their operations. You can try taking the help of one of the GST services to get GST-compliant. Need a loan to file your good service tax returns? Visit the Piramal Website for an easy and quick personal loan. They also have many articles and blogs to help improve your skills on the subject.
08-11-2023
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Personal Loan

Personal Loan Balance Transfer: Everything About Interest Rate and Fees

In times of financial hardship, your finances take a hit. Your immediate financial needs force you to take out a personal loan. In that case, you may want to ease your financial stress by decreasing your interest payments and EMI. So, can you do a personal loan balance transfer? Keep reading to find out! [B-01] What is a Personal Loan Balance Transfer? A balance transfer is a procedure by which a lender transfers the total amount owed on a personal loan. The lender transfers the amount from one lender to another lender. This often occurs when people switch banks for lesser interest rates on the current loan. A decrease in total debt is the major goal of a personal loan transfer. Suppose you want to reduce the interest you’ll pay on your loan. In that case, you must check each balance transfer offer before deciding which one to use. Also, you don’t need to submit collateral when transferring loans. How does Personal Loan Balance Transfer work? Suppose you transfer your personal loan from one lender to the other. Then, the newer bank will pay off the old loan. And, if your existing loan has a foreclosure fee, you may have to pay it. But if you could reduce your interest rate, your funds will be more than these costs. Personal Loan Balance Transfer Interest Rates The interest rates by your current lender are always higher than those given by new lenders. Yet, the interest rate on a new personal loan will depend on various factors. These factors are: The money you owe How long you’ve had the loan Your creditworthiness, your salary The lender’s risk assessment Balance Transfer Processing Fees and Charges Suppose you took out a personal loan with a set interest rate. In that case, your loan provider can levy a foreclosure fee. A fee of up to 5% of the remaining loan balance if you switch lenders. Suppose you take the example of unsecured loans with variable interest rates. In that case, lenders will not impose a prepayment penalty. But when transferring a personal loan balance, expect to pay a service charge of between Rs. 500 and 4% of the principal amount. Benefits of a Personal Loan Balance Transfer Here are some benefits of a personal loan balance transfer: Better Rate of Interest Lowering the interest rate is the primary benefit of transferring a personal loan. That’s because it reduces the total amount of interest paid over the life of the loan. Hence, if the borrower transfers their loan to a different lender, they can get a better interest rate. Yes, your new financial institution will raise your interest rate. But institutions like Piramal Finance decrease interest rates after reviewing your financial history. Extended Duration on the Loan When switching personal loans, you can renegotiate the loan’s repayment terms. Depending on the talks, there is some negotiation room in the EMIs and lending rates. Also, it is not necessary to have collateral to transfer a personal loan amount. Yet, banks can charge small fees, such as foreclosure fees and administrative costs. They can also charge credit agreement stamp duties. Added Features Income, credit, and payment history are all considered when determining eligibility for features. Some lenders give more attractive terms. Terms like: No initial costs Cheaper interest rate Cancelled last EMI Also, you can lower your personal loan interest. And, you can use the balance transfer option and qualify for enhanced loan terms. Increase in Credit Line When transferring a personal loan, several banks also have the option to add funds. Also, the interest rates on newer personal loans are among the lowest. Plus, several lenders and banks offer top-ups among the lowest in the industry. Transferring your personal loan can help your economic situation. Also, it can help you make better repayment decisions. Things to Consider When Opting for a Personal Loan Balance Transfer Here are some things to think about before deciding on a balance transfer for your personal loan: Check the New Offer It’s important to figure out how much payment you’ll have to make. Also, to figure out how much the balance transfer would save you. You must use a personal loan balance transfer calculator to find your cost savings. As with the previous, this is accessible over the internet. Cost Involved Transferring a personal loan from one institution to another often has fees. Personal loan foreclosure fees and balance transfer fees are possible. Thus, when calculating the balance transfer facility’s worth, include these expenses. Terms and Conditions Before saying yes to a balance transfer on a loan, it is vital to understand all terms and conditions. So, read the terms to ensure you understand all important points and fees. Offer vs. Need If a balance transfer option is available, you should only use it if it meets your individual needs. For example, some clients don’t need a balance transfer facility’s top-up loan options. To make the best decision, you must weigh the balance transfer offer’s future benefits. [B-02] Conclusion You should find a personal loan balance transfer and go with a new lender. But do this only if you find that the interest rates on your current loan are too high. There’s tough rivalry in the lending industry. Hence, you can shop for the most vital interest rates and policies to your advantage. Personal loans can be quite helpful when money is tight. Plus, by transferring your loan, you can get lower rates and better terms in the future.
08-11-2023
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Tax Savings

Here are some best Income Tax Saving Schemes in India

Several tax-saving schemes available in India can benefit you in various ways. From insurance plans that help you save on health expenses to loan repayment schemes that can provide tax savings, there is something for everyone on this list. Read on to learn more. [B-01] Unit Linked Insurance Plan (ULIP) Unit-linked insurance plans (ULIPs) are a tax-saving investment option. They protect you and your family from issues caused due to significant accidents or health problems. They are insurance plans linked to a particular investment. The premiums you pay are based on the return on that investment. This means you can choose the policy that best suits your needs and budget. There is no need to qualify for a particular plan. All you need is enough money saved up to cover the premiums. ULIPs are flexible, so you can choose the best policy that fits your needs. In addition, ULIPs are tax-saving options. This means you don’t need to pay income tax on your premiums. ELSS Mutual Funds There are some excellent income tax saving schemes available in India. One of the most popular options is ELSS. ELSS stands for equity-linked savings scheme. These mutual funds offer tax savings and investment exposure to Indian stocks and bonds. There are several different types of ELSS mutual funds available. So choosing the one that best suits your financial needs is essential. Many of these funds offer instant tax deductions for investments up to Rs. 1.50 lakhs in a year. So you can start saving immediately. Make sure to consult with a Registered Financial Advisor (RFA) before investing in an ELSS Mutual Fund. They will be able to help you make the most informed decision for your specific situation. In the long run, ELSS mutual funds can offer you a healthy return on your investment while also helping you save on your taxes. Public Provident Fund (PPF) If you’re looking for a tax saving investment scheme, the public provident fund (PPF) is a great option. A public provident fund is a savings account that allows you to save on your taxes and earn interest on your money. The government provides a fixed interest per annum for this scheme. The interest is usually high compared to other banks and savings accounts. Additionally, you can use the PPF for insurance purposes or to purchase assets such as mutual funds or stocks. There are several benefits to opening a PPF account. So it’s worth considering if you’re looking for an income-generating scheme. Sukanya Samridhi Yojana (SSY) The tax season is almost here, so it’s time to start thinking about income tax savings schemes. One of the best options for low-income families is the Sukanya Samridhi Yojana (SSY). SSY helps families save money on their income tax bill, and the benefits are maximum for those living in rural or semi-rural areas. Eligible families can receive up to Rs 4,000 per month in savings, which can help reduce their tax burden. Other schemes like the Pradhan Mantri Jan Dhan Yojana (PMJDY) and the Rupay Card Scheme for Urban Residents offer similar opportunities. Make sure you research all available options and choose the best income tax savings scheme for your financial situation. National Savings Certificate The National Savings Certificate (NSCC) is a government tax savings scheme. It offers tax-free interest and a minimum deposit of Rs 10,000. NSCC certificates can be used to purchase items like cars and property, making them versatile investment vehicles. You can also get some interest in your savings account. This makes it a good option for retirement planning. Plus, there’s no need to open an account in person. You can do it online easily. Tax-savings fixed deposit When it comes to income tax saving schemes, a fixed deposit is always a good option. Many types of fixed deposits are available, with interest rates usually meagre. This makes them a great investment for beginners and long-term investors. You can also take advantage of tax rebates and bonuses to increase your return. Senior Citizen Savings Scheme The senior citizen savings scheme (SCSS) is a great way to save for your future. The program offers high-interest rates on deposits made into designated accounts. Thereby encouraging people of all ages to get involved. Your funds are FDIC-insured, so you can be sure they’re safe and will earn you good returns. In addition, you don’t have to be a resident of India to participate – anyone over 60 years of age can join. Repayment of an education loan If you’re one of the many Indians who have an education loan, it’s time to get organized and start repayment. Several options are available, depending on your financial situation and repayment plans. You can repay the loan over time through various methods, like monthly payments or lump sums. Remember that repaying your education loan is a process that takes some time, but it’s definitely worth it in the long run. Interest paid on home loan There are many tax-saving schemes available in India that can help you save tax on your income. The Interest Paid on Home Loan (IPH) limit is an important option. As per Section 24 of the Income Tax Act, 1961, you can claim an income tax deduction of up to Rs. 2 lakhs against the interest paid on your home loan every year. Health Insurance premium under section 80D If you’re in the tax bracket of 10-15%, health insurance premiums can amount to a hefty sum of your income. But fret not. Under section 80D of the Income Tax Act, you can deduct your health insurance premium from your taxable income. This allows you to reduce the tax you owe each year. The maximum deduction you can claim is Rs 2 lakhs per year. Additionally, you must file a Form 15G if you claim this deduction – it’s free and easy to do online. [B-02] Conclusion It would help if you understood all the tax saving schemes correctly. These tax-saving investments can be efficient sources for saving a significant sum of money. If you need clarification about the tax-saving plans, you may reach out to professionals at Piramal Finance. With a team of experts, they can assist you with all types of financial advice, thereby helping you in the long run.
08-11-2023
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Tips & Advice

Tips To Earn Maximum Interest From Your Public Provident Fund

The Public Provident Fund (PPF) scheme was made to help Indians save money over time. Those who have invested under this plan will get money from the PPF account after a minimum of five years. They can then choose to extend their lock-in period in blocks of five years for an indefinite period. Every year, a person can invest up to Rs. 1.50 lakhs in the scheme. This programme is open to all Indian citizens who work in the private or public sector, except those covered by the EPF plan and Indians who don’t live in India. [B-01] How to Figure Out Interest in a PPF The Public Provident Fund’s interest rate changes over time. This rate of return changes depending on the type of government bond bought. The PPF’s interest rate changes every three months. Because of this, the account’s interest is added every month. The principal and interest of PPF are invested for future growth. At the end of each fiscal year, this account’s value is changed to account for the interest earned. It is then put back into the account. When this happens, people take money out of their PPF accounts. You can take it out as needed or wait until the end of the investment period to get the most out of your money. For the third quarter of the current fiscal year 2022–23, October through December, the PPF interest rate is 7.1%. Strategies for Making the Most of Your PPF Putting money into a PPF earns more than putting money into a fixed deposit at a bank. One way to increase one’s income is to put money into the PPF. In the following sections, we’ll talk about several ways to make more money from the interest on your PPF. When to put money away each month. The PPF account’s monthly interest is calculated on the 5th of the following month. Before the 5th of the month, you must put money into the PPF. When money is invested before the 5th of the month, it earns interest for the whole month. If a person invests after the 5th of the month, they won’t get any interest. The right time to put away money. The minimum balance in the PPF account is used each year to figure out the investment period’s interest rate. So the investor doesn’t have to put away the same amount every month. Instead, the investor can save all the profits at the start of the fiscal year. Since the fiscal year goes from April to March, the best time to invest is from April 1 to April 5. The minimum amount in the PPF account will increase, earning them more interest. Digital PPF account. You can get the best returns by using digital banking to regularly put money into a PPF account. People need to plan a trip to the bank around the time their monthly PPF payments are due. Because of this, investments are often put off or never made at all. You can make the most of your investment by opening a PPF account with a bank that works with online service providers. PPF Account in the Name of the Spouse You can open a PPF account in your spouse’s name so she can get the money from your investments. According to the law, gifts of money or property are not taxed. So this saves the investor money on taxes in two ways: there is no need to pay taxes on the property or the money in the PPF account. Set aside money for children. The Income Tax Act lets you invest up to a certain amount of money tax-free for your children’s education. A child can put the most into a PPF account each year is Rs 70,000. This investment could pay for the child’s education until they are eighteen. Take out only what you need. If you take too much money out of your PPF account, the level above which you have to pay a fee may go down. The investor’s monthly investment return might be less than expected. Investors are only allowed to use PPF in case of an emergency. So, you have a better chance of making as much money as possible during the month or fiscal year used to figure out interest. How to get the most out of PFF The PPF has a lock-in period of 15 years. Most people have trouble with this because they need more patience, but the high rate of return on investment that comes from saving early for retirement may be very helpful. Currently, the most you can earn on an annual savings account is 7.9%, while the most you can make on a PPF is 7.1%. (FY 2019-2020). PPF account holders can make a tax-free withdrawal of part of their savings after seven years if needed. Withdrawals made after the 15-year lock-in period are also not taxed. In addition, three years after the account is opened, you can borrow against the PPF balance. This makes the total interest rate on loans go down. Lastly, it’s essential to know that the PPF has two tax benefits. Under section 80C of the Income Tax Act, both withdrawals and interest added to the money in the PPF account are tax-free. [B-02] Conclusion When you retire, the PPF could help you save money on taxes. People who join this plan can choose to invest some of their monthly or annual income for the near or distant future. Every three months, the interest rate that these funds earn is changed. Always consult experts like Piramal Finance, who can guide you professionally to better gains.
08-11-2023
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Tax

Things to Know About Section 80D of the Income Tax

Tax planning is always challenging. Figuring out how to save on income tax can get complicated. Various laws allow for a deduction in the income tax amount. Medical emergencies and bills are unexpected expenditures that can put your financial plans on hold. At unforeseen times like these, it helps to have health insurance that can cover such expenses. However, most people do not invest in health insurance. This way, they bear substantial medical costs that do not align with their financial goals. To prevent this from happening, the government of India introduced Section 80D. [B-01] Section 80D of the Income Tax Act allows for tax deductions on medical insurance. With this, you can be prepared for those unexpected medical bills and save on income tax. Let us look closely at some things you need about the section. Type of investment under SEC 80D When planning for taxes, knowing the types of investments that allow for deductions is essential. Section 80D has been specifically created to cover expenses incurred for your health. You can claim benefits under Section 80D if you have medical insurance and are paying the premium. Section 80D of the Income Tax also allows for deductions in the case of critical illness plans or top-up health plans. Eligibility of Deduction Under 80D of Income Tax Act Exemptions offered by Section 80D can be claimed by individuals and the Hindu United Family (HUF). If you have a health insurance policy, you can claim a tax deduction for: Money spent on insurance premiums for yourself Money spent on insurance premiums for your family These deductions are separate from those you can claim under Section 80C of the Income Tax. You can claim an exemption with the help of both of these sections. Deductions under Section 80D Only when you pay for medical insurance premiums can you claim the tax benefits offered by Section 80D. Deductions under the section are classified based on age. The following are the deductions allowed under this section: You, above the age of 60 years + Parents, above the age of 60 years- If the premium paid for both is Rs. 25,000 each, you can get an exemption of Rs.50,000. You and your family, below 60, and your parents, above 60, can get a deduction of Rs. 75,000 if the premium paid for you and your family is Rs. 25,000, and for your parents, it is Rs. 50,000. You and your family, above the age of 60, plus your parents above the age of 60, can get a deduction of Rs. 1 lakh if Rs. 50,000 is paid toward the premiums of all parties individually. Non-resident Individuals: If you have paid Rs. 25,000 for yourself, your family, and your children and Rs. 25,000 for your parents, you can get a deduction of Rs. 25,000. Hindu Undivided Family (HUF): If Rs. 25,000 has been paid for yourself, your family, your children, and your parents, you can get a deduction of Rs. 25,000. Generally, people over 80 are not eligible for health insurance. In this case, you can claim tax benefits without any medical insurance. Any money spent on their treatment can be deducted under Section 80D. You can claim deductions of Rs. 80,000. Exclusions When tax planning, it is important to take note of the exclusions under Section 80D. Even though you might have medical insurance, you cannot claim benefits under this section if: The insurance premium was paid in cash. However, you may pay for other medical expenses with cash and still avail yourself of tax benefits. The insurance premium was paid for siblings, grandparents, working children, or other family members. You can only claim benefits under Section 80D if the premium was paid for yourself, your spouse, your non-working children, and your parents. Your company paid for group health insurance on your behalf. Maximum limit You can claim deductions under Section 80D on medical insurance premiums and health check-ups. While it is important to remember the exclusions under the section, it is equally important to take note of the maximum limit of deductions you can avail. The maximum limit on these deductions is as follows: You can claim a maximum benefit of Rs. 25,000 for yourself and your family. For health check-ups, Rs. 5,000 is the maximum deduction. For yourself, your family, and your parents, the exemption limit for medical insurance premiums is Rs. 25,000 for yourself and your family and Rs. 25,000 for your parents. Whereas, the limit for health check-ups is Rs. 5,000. For yourself, your family, and your parents above 60, you can claim a maximum of Rs. 25,000 for yourself and your family’s insurance premium. You can claim a maximum of Rs. 50,000 for insurance premiums for your parents. A total exemption of Rs. 5,000 is given for health check-ups. For (above the age of 60) yourself, your family, and your parents above 60, the exemption limit for medical insurance is Rs. 50,000 for yourself and your family. For your parents, too, the limit is Rs. 50,000. The overall exemption for health check-ups is Rs. 5,000. [B-02] The bottom line Careful financial planning is a necessary step. But medical emergencies may come when you least expect them to. Medical bills are often a huge expenditure. It is financially wise to get medical insurance for you and your family. With insurance, you can plan well ahead of time. Section 80D of the Income Tax Act can help reduce your burden. You can claim deductions on your health insurance premium and for health check-ups. Reading more about Section 80D is essential to make the most of this. The points mentioned here helped you gain clarity about Section 80D. Tax planning can be tricky, but you can count on reliable sources like Piramal Finance to help you through the process. With expert financial advisors, you can rest assured. Make sure you check out their free credit report tool. If you want to learn more about finance, you can browse their articles and blogs.
08-11-2023
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Personal Loan

Finance Your Leh Ladakh Road Trip Travel With Personal Loan

These last two years have been challenging for humans due to the COVID-19 outbreak. The pandemic destroyed communities and economies. During this time, many people have switched to working from home. Due to health concerns and international travel restrictions, people had to postpone their road trips. But now that the restrictions are over get an instant personal loan and start planning your road trip. So, if you can apply for a personal loan at lower interest rates, why don’t you pack your bags and set for a Leh Ladakh trip to embark on an adventure of a lifetime? There are many monetary considerations when planning a trip. The expenses associated with travel, such as airfare, food, lodging, and others, may add up. Those figures will rise if you intend to bring everyone in the family along. Depending on the destination and the level of comfort desired, a trip overseas might cost considerable money. To cover that amount, you can apply for a personal loan and get the money to enjoy a wholesome road trip with your loved ones. [B-01] Why Choose an Instant Personal Loan? The following factors may make a personal loan the best option for financing your next trip: – Freedom to Use You should budget for a wide range of expenses that might come up as you plan your trip. One example is to apply for a personal loan to pay for lodging and travel rather than saving up for those expenses. You should have enough money to meet your basic costs while travelling. This amount should also cover other expenses incurred due to an urgent situation. It is possible that you or a loved one could take ill or that you might lose some expensive goodies. So you also need to have some extra money by your side during the trip. You might get a personal loan to cover the full price of your next vacation. Unlike other types of loans, personal loans can be used for anything. Personal loan providers aren’t concerned about how the money will be used. Reduce your burden with EMIs An Instant personal loan can be repaid in EMIs. The stress of saving up for a vacation may now be put to rest, and you can enjoy it to its fullest. Refrain from spending all your savings. With a personal loan, all your issues can be taken care of. Your income will determine whether you can afford to make your EMI payments. How much you have to put toward your loan each month depends on several factors. This includes the amount you borrow, loan tenure, and the interest rate. This is why looking for the best instant personal loan is vital to make your EMIs affordable. If you decide that you no longer desire the personal loan after paying the EMIs for a few months, you can close the account by paying off the sum. Your lender may charge a nominal foreclosure fee. Flexible Loan Terms To what extent and how long you opt to pay EMIs for a personal loan is up to you. In most cases, the duration of a personal loan is between 12 and 60 months. If your lender provides you the chance, you may be able to extend the time to repay your Instant personal loan. When settling on a loan term, you need to be prudent. A loan with a longer tenure may have lower EMIs, but it will cost more in the long run. No need for a security Unlike secured loans, personal loans do not need security. This means that you might get a personal loan without giving any collateral. As a result, you may spend the money on vacation. If you have a good credit score and meet the rules, you can apply for a personal loan at a nominal interest rate and use it for a holiday. Simple eligibility Age, monthly income, and credit score needed for a personal loan could differ across lenders. Some lenders may base their choice to lend to you on your credit history, making it work to get pre-approved for an instant personal loan. No need to show your eligibility while applying for one of these personal loans because they are pre-approved. Easy paperwork Only the following documents are necessary for a loan: – Age proof. Income proof. ID Proof. Work-ex proof. Quick disbursal Instant Personal loans may be used to get fast cash in an urgent situation. Personal loans are available since they involve little in the form of paperwork and collateral. So, go ahead and start preparing for your perfect getaway. Lenders often approve personal loans in as little as two or three days. Another possibility is receiving a travel loan that can be applied for online. Large savings Every loan application must analyse the interest rate. Compared to other unsecured loans, including credit cards, the interest rates on personal loans are much lower. Thus, an instant personal loan is a way to go if you want to avoid adding to your financial issues by employing a high-interest credit card to finance your vacation. [B-02] Conclusion Using a personal loan is an excellent option to finance travel needs. But to get the best deal, you must contact Piramal Finance and learn more about their personal loans. The benefits of their loans include low-interest rates, flexible payback schedules, pocket-friendly EMI options, and a range of borrowing amounts.
08-11-2023
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Personal Loan

Light Up Your Homes This Diwali by Taking a Personal Loan

Diwali is around the corner, and you surely want your home to be fully prepared. It would be fantastic if you could do it a few days before the celebrations. A personal loan for home improvements can cover all of your costs. You can pay it back easily and over a long time. A personal loan for home renovation is convenient because you can apply for it online. This speeds up the process of getting approved and getting the money. Let us look more closely at how you could use an instant personal loan to fix up your home for Diwali. [B-01] Festive spending can sometimes get out of hand As you may remember from past festive seasons, the costs of festivities often end up going over one’s budget. One reason could be that inflation keeps eating away at your savings. If you don’t save money or make a financial plan throughout the year, these festive costs can become a burden and ruin the festive spirit. But some festive costs are necessary and must be paid for. Thanks to a festive loan, you can enjoy the special parts of the festivities you like. You could use a personal loan to buy a new fridge or TV. You could also use a home renovation loan to fix up your house. Credit cards aren’t as good as personal loans. They have higher interest rates. One of the best ways to pay for the holiday season is with a short-term personal loan. You can pay it back in a few months. A few ideas for a home makeover with a personal loan Festive lighting and home renovation One tradition that has always been part of Diwali celebrations is cleaning the house. As Indians, we usually believe that cleaning the house is the first step in preparing the home for Diwali and Lakshmi Puja. You can also utilise this time to add a new aspect to your celebrations and fix up the house. Diwali is recognised as the “festival of lights.” We traditionally put lights inside and outside our homes. You can apply for a personal loan to pay for the costs of home improvements and lighting. Household appliances and gadgets Diwali is regarded as a festival of celebrations as well. It makes sense that top online retailers and well-known franchises in the consumer goods industry continue to make purchases this month. Many offline shops and online shopping apps like Flipkart and Amazon run special Diwali sales. Given the festive discounts, it may be a good time to get new appliances and technology at a discount by using a personal loan. The saying “A penny saved is a penny earned” is an old one. You can put it into practice by making additional savings during these holiday sales. Paint your home If we aren’t doing a major renovation, most of us have to paint the walls of our homes. People often put off painting their walls for Diwali until another time. At the moment, the price of paintings goes up every day. Also, the price will go up if you need a personalised wall painting. A personal loan is available to assist you if you would like to paint the interior walls of your home but are hesitant due to a lack of funds. You can apply right away for a personal loan. It will be provided to you in a matter of hours. Gifting You have a lot of friends and family members. So your list of people to buy gifts for is long. No matter what you give as gifts, the total amount needed for all of them is huge. With an online personal loan, you can get money right away to put back into your bank account so you can keep shopping. Garden landscaping Use the personal loan money to create the garden you’ve always wanted in the area surrounding your home. Even a small carport for your vehicle can be built. It can lead to your garden. Along with a variety of plants, a gazebo or outdoor furniture will help to complete the look. This will improve the curb appeal of your house. It will also give you more space to host visitors during the holiday season. How to apply for a personal loan during the festive season? With a slew of festivals coming, markets tend to grow crowded and raise prices to profit from the extra need. Thus, it is great to apply for a personal loan ahead of the festival season. This will ensure that the funds are issued on time. You must ensure that your form is granted as soon as possible. The first & key step is to verify personal loan eligibility. You may also utilise the web eligibility tools provided by almost all major lending banks for this purpose. Next, you must pick the best bank by comparing and analysing personal loan rates. Finally, it is usually a good idea to keep the papers prepared so that the application phase goes well. When you are all set to apply for a personal loan, you must go to the bank’s website, call them, or go to the local branch. You may also apply for a personal loan online & have it granted quickly. To do so, you must complete the request form and provide the needed paperwork. You may easily get loans up to INR 25 lakh if your request is approved. [B-02] Conclusion A personal loan does not need any form of asset or security. It’s a great way to get over a short-term financial crisis and swiftly meet any urgent demands. The festive season has begun. It is a great moment to embark on new projects and make investments. There is also a monetary desire to make the festive period even more special. Due to the vast sum of purchases to be made, whether for oneself, loved ones, or the house, the festive season could be taxing on the purse for some. In any case, seek a fast personal loan to meet the extra expenses. Piramal Finance has similar blogs for you to help you get a personal loan. Give the blogs a read and check out the other services they offer.
08-11-2023
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Personal Loan

All You Need to Know About Different Factors of Personal Loan Disbursement Process

There will always be customers looking for a personal loan. Today’s working class prefers to take out personal loans above any other kind of emergency funding for many reasons. These include high inflation, high living costs, and a lack of alternatives. We all run into situations when we need a little bit of additional cash to make ends meet. In such times, a personal loan is often the best option to avoid financial stress. Many young professionals like the convenience, speed and low cost of a personal loan. These factors make them attractive financial options. [B-01] As indicated above, personal loans are all the rage today, but the loan disbursement process is not known to many. Most people who apply for loans have no idea what goes on behind the scenes when one is approved. In this article, we’ll look at the loan disbursement process. What are the different factors of the personal loan disbursement process? Disbursement of loans: The procedure The lender will release the funds when a borrower’s application for a personal loan is accepted. Depending on the lender, they can disburse the amount in many ways. Typically, the lender will use NEFT to give the loan amount to the consumer’s nominal checking account. Cheques or demand drafts are also an option if customers prefer a more traditional method of receiving their funds. However, you must present the demand draft or cheque to a bank to get the cash deposited into your account. Loan disbursement Once your loan is accepted, you will get a digital or physical approval letter from the lender. The approval letter will confirm the loan’s approval. It will include further information such as interest rate, principal amount, monthly EMI, etc. Then, the lender will issue you a cheque for your borrowed amount. Some lenders might send you a cheque in the mail. Lenders often quickly deposit the money borrowed into the borrower’s account. Loan amounts that are ultimately released are not guaranteed to match the originally approved loan amount. That’s because lenders deduct several charges, like processing fees. Once the loan is approved, you’ll have to deal with many paperwork requirements before getting your hands on any money. Disbursal amount Several variables determine the loan disbursement amount you get. The approved loan amount is the primary and most obvious option. The second is the remaining overage fees that you must pay. For example, lenders often subtract processing costs, sales taxes, or other charges and the first payment from the disbursement amount. The welcome kit of the lender After your loan has been approved and funded, you will receive a welcome packet containing important details. All necessary paperwork, including a loan contract outlining the loan’s terms, interest rate, and repayment plan, will be included in the welcome packet. Furthermore, the lender will send a confirmation message to the address you provided during registration. Your lender will also give you access to your loan facility through a smartphone app. The disbursal time Every individual needing a personal loan is worried about when they’ll receive it. A traditional loan requires in-person meetings and documentation. This may lengthen the lending process to seven or eight days. However, the time it takes to get your hands on funds from an instant personal loan is much less. You can often get the loan disbursed within a few hours. Therefore, a quick and easy online personal loan is the best option if you need urgent money. It’s easier for borrowers to manage their finances and get their funds quickly with an online loan. Requisites for repayment Instant loans simplify both the borrowing and the paying back processes. Loan payments typically begin in the month after loan disbursement. For example, if you get your loan before the 20th of the month, your payback schedule will begin the month later. However, get the loan after the 20th of the month. The corresponding EMIs will begin getting collected from the month following the next. Nowadays, borrowers of personal loans may choose to have their loan payments automatically deducted from their bank account. Two more loan repayment methods are post-dated checks and ECS. In this arrangement, the debtor and the creditor agree on the same terms ahead of time. Penalty prospects The borrower must either authorize the creditor to deduct a certain amount on a specified date or furnish the lender with post-dated cheques. Regardless of the circumstances, the borrower must ensure that there will be enough money in the account to cover the loan payment on the due date. If the borrower doesn’t, he’ll have to pay a fine. Their credit rating will also be severely impacted. [B-02] Conclusion Personal loans are highly common due to the ease with which they can be applied for and disbursed. With the help of digital lending, a person may get his loan disbursement only hours after applying. This allows him to address any pressing financial needs immediately. Digital lending services are so good that applicants can request a personal loan digitally. Moreover, they can complete the whole process, including paperwork, approval, disbursement, repayment, and closure, all from the convenience of their smartphone. These days, getting a loan disbursed is a quick, easy, and paperless procedure. You can finish this in a matter of hours. Hence, apply for a quick personal loan with Piramal Finance and get instant funds!
08-11-2023
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Personal Loan

Here’s to know do you have to pay interest and fees on a personal loan?

Here’s the thing – if you have taken a loan, you definitely have to pay interest. In fact, you have to pay interest on every loan except for No Cost EMIs. Apart from interest, there are other charges associated with a personal loan as well. We’ll discuss these charges in this article as well. [B-01] Also, lenders can charge more for their services. That’s because borrowers don’t have to put up any collateral to get a personal loan. Personal loans are a kind of unsecured loan in which the borrower doesn’t need to put up any collateral. Nowadays, borrowers can get a personal loan without filling out lengthy applications, even without providing supporting papers. In this article, we discuss personal loan interest and charges. So, without further ado, let’s jump right in! What is Loan Interest? To take out loans, you must pay interest. A personal loan of Rs. 20,00,000 can cost you about Rs. 2,30,000 with interest payments during your lifetime. This is an extra Rs. 30,000 as personal loan interest. The principle and the interest are both reduced with each payment made toward the loan. The interest rate that a lender applies to a loan depends on several variables. These variables are: The borrower’s credit history Yearly income Loan amount Loan conditions Existing debt levels Simple interest Calculating loan interest using the simple interest technique is a breeze. To determine the total interest paid, you’ll need to know the following: The original loan amount Rate of interest Length of years or months over which you’ll make payments Despite the monthly EMI, interest gets calculated on the remaining principal amount. Also, it will vary from month to month. Suppose the lender does not levy penalties for prepayment. In that case, paying off the loan early can save a significant amount of money. Lenders use a variety of interest-charging strategies, each aimed at maximizing profits. Interest on loans can be tricky to calculate. That’s because different forms of interest have different mathematical formulas. How to calculate Simple Interest? To determine how much interest you’ll pay, use the formula below. Calculating the interest on a loan is very simple. It’s as simple as multiplying the principal by the interest rate times the loan’s length in years. Applying the basic interest calculation to a loan of 2 lakh over 5 years at 5% interest gives this result: 2,00,000 x 15% x 5 = 15,000 in interest The interest rate might be as low as 1% on short-term loans. But we calculate interest differently by banks and other lenders. Do you have to pay Interest and Fees on a Personal Loan? Instead of a credit card, a personal loan provides the borrower with a lump sum of money all at once. The remaining balance, plus personal loan interest, is repaid by the borrower in EMIs during the length of the loan. When you take out a personal loan, the lending company will charge you interest on the money you borrow. You will pay back this sum in instalments during the life of your loan. You should include interest during the life of the loan, as it can raise the final amount owed to the lender. Charges associated with Personal Loans Loan Processing Charge The bank will pay a small fee for handling the paperwork associated with your loan. The bank assesses this fee to cover the costs of handling the loan’s paperwork and processing. As a rule, this fee is negligible. The percentage applied to your loan balance ranges from 1% to 2.5%. But every bank charges a processing fee. Verification Charge Loan approval requires convincing the bank. You need to convince the bank that you can afford to return the money on time and according to the loan’s terms. The procedure causes the bank to hire an outside agency to examine your credit history. The bank must pay for this service, so it hires an outside firm. Thus, this fee is a verification fee, and the borrower pays it. Penalty on Default Banks usually allow you to pay back the loan in equal monthly instalments. The loan amount, repayment period, and interest determine the monthly payment. The borrower’s financial stability and capacity to make loan payments also determine this. Yet, there are situations when you will have trouble paying your EMIs on time. In this case, the bank will charge a fee if you delay your payments. That’s because you have stopped paying the required monthly instalments. Thus, you should only agree to EMIs within your financial means. Prepayment Penalty Suppose you have access to cash that you can use to settle a personal loan you have taken out. Then, you can either repay the debt or foreclose on it. Banks would rather not do this since they will have to pay interest payments on your loan. So, the bank will charge you a foreclosure fee of 2-4% of the loan’s total amount. The foreclosure charge will also get affected by the loan’s prepayment status. Goods and Service Tax While their clients are amid their loans and processing, banks provide various services. Also, the applicant will have to pay taxes on these services. Due to this, the bank will charge a consumer GST on the services they offer. Duplicate Statement Fees The bank is there to help you track your payments or determine where you stand. They’ll do this if you’ve forgotten when the payments were due. The bank will charge you a fee if you request duplicate reports or other information. It’s dubbed a “duplicate statement fee” for obvious reasons. You can also use this documentation to verify the current loan balance. As part of the loan package, the bank also provides these statements. [B-02] Conclusion It is important to figure out how much interest you would owe before applying for a personal loan. Find out from the lender how they calculated the interest. Then, use the proper method (or a calculator) to determine how much personal loan interest you owe. Consider the aspects that will have an impact on your interest rate as well. Borrowing less money or making payments faster can help you keep more cash. To receive the best personal loan interest rates, you must first search and work on your credit history.
08-11-2023
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