More articles for you

Your one stop place for everything related to finance and lending

Tax Slabs

Income Tax Slab Rates for AY 2022-23

Paying income tax is one of the fundamental duties of every working individual out there. Paying taxes has its benefits. These help you with all types of approvals during loans and visas. In addition, the tax you pay to the government is used for infrastructure development, different welfare schemes, scientific research, defence, etc. This provision of paying tax was introduced in the Income Tax Act, of 1961. This helps the government to generate revenue and serve its citizens for their goods. There is another subject that is associated with income tax and it is known as the income tax slab. The income tax slab is the division of different working classes according to which individuals pay their taxes. The whole calculation of income tax is done through an income tax slab rate, where different categories of taxpayers pay different interest rates. These slab rates are subjected to periodic changes and change every financial year. [B-01] This article is a dedication to income tax slabs and the income tax slab rates for the financial year 2022-2023. In this article, you will know about income tax slabs, their advantages, and the tax slab rates for the Assessment Year 2022-2023. What is an income tax slab and what is its significance? The income tax slab is the mere categorisation of different income groups and accordingly, the taxpayers pay their income tax. In simple language, it refers to paying your income tax based on your income amount. The Government of India charges income to these individual categories of taxpayers: Body of Individuals, BOI Hindu Undivided Families, HUF Companies Corporate Firms Local Authorities Associations of Persons, AOPs Now, it is important to know that the calculation of income tax is done according to the income tax slab rates, different rates are charged to different types of taxpayers and the incomes they generate. There are four tiers under which different taxpayers are categorised and pay their taxes accordingly. What are the different tax-paying categories under the Income Tax slabs? There are seven different types of taxpayers according to which their income tax slab rates are decided. For people whose income is up to 2.5 lakhs per annum: For people whose income is up to 2.5 lakh rupees per annum belong to the first category of taxpayers. However, the Government of India doesn’t charge any tax to this category. For people whose income ranges between 2.5 lakhs per annum to 5 lakhs per annum: If your income is between 2.5 lakh rupees per annum to 5 lakh rupees per annum, then you belong to the second category in the income tax slab. Your income tax is calculated according to the income tax slab rate under this category. The income tax slab rate for this category in 2022-23 is 5% of your total income. For people whose income ranges between 5 lakhs per annum to 7.5 lakhs per annum: If your income is around 5 lakh rupees per annum to 7.5 lakh rupees per annum, you belong to the third category of income taxpayers. So according to the income tax slab rate that applies to this category, you pay your income tax. The income tax slab rate for this category in 2022-23 is 10% of your total income with an additional charge of 12,500 rupees. For people whose income ranges between 7.5 lakhs per annum to 10 lakhs per annum: If your income is around 7.5 lakh rupees per annum to 10 lakh rupees per annum, you belong to the fourth category in the income tax slab. Your income tax is charged based on the income tax slab rate of this category. The income tax slab rate for this category in 2022-23 is 15% of your total income with an additional charge of 37,500 rupees. For people whose income ranges between 10 lakhs per annum to 12.5 lakhs per annum: The people whose income ranges between 10 lakh rupees per annum to 12.5 lakh rupees per annum, belong to the fifth category of the income tax slab. The Government charges a specific income tax slab rate to the taxpayers who belong to this category. The income tax slab rate for this category in 2022-23 is 20% of your total income with an additional charge of 75,000 rupees. For people whose income ranges between 12.5 lakhs per annum to 15 lakhs per annum: The people whose income ranges between 12.5 lakh rupees per annum to 15 lakh rupees per annum, belong to the sixth category of the income tax slab. They are charged according to the income tax slab rate that applies to this category. The income tax slab rate for this category in 2022-23 is 25% of your total income with an additional charge of 1,25,000 rupees. For people whose income is more than 15 lakhs per annum: If your annual income is more than 15 lakhs, you belong to the last category of the income tax slab. The income tax slab rate for this category in 2022-23 is 30% of your total income with an additional charge of 1,87,500 rupees. [B-02] Summing it up: Income tax slab rates are subjected to changes every year and are released by the Income Tax Department of India. There are seven different categories of taxpayers and likewise, they are advised to pay their income tax. You can go through the list above and choose your category from the income tax slab. If you have reached this far, it is evident that you like reading topics based on finance and for that, what is a better place to go than Piramal Finance?

08-11-2023

Tax Slabs

Income Tax Deduction Section List

Taxes are the basic income source for the government. Infrastructure, scientific research, and defense are funded through these different welfare schemes. Paying taxes is the duty of every individual with a standard income source. When you pay taxes regularly, you take one step towards becoming a dutiful citizen. Paying taxes enables you to get approvals for loans and visas. You also get benefits from the investments made by the government through the taxes you pay. But sometimes, tax planning is equally important to help you save more and reduce your financial distress. And for more income tax deductions, the Government of India came up with different sections of the Income Tax Act, of 1961. For example, section 80(C) is one such provision that allows you to save tax on the income you generate through investments. [B-01] Want to know more about the different tax deduction provisions to save more? Well, then this article is the right place for you to find out the answer to this question. In this article, you will find out about different income tax deduction sections of the Income Tax Act. Income Tax Deduction Section List: In action, there are several sections of the 1961 Income Tax Act that enable you to save tax, mainly under Section 80. These sections touch upon different subjects like investments, health insurance, education, etc. The first one is Section 80(C). This is subject to the income tax deduction under the investment category. The second one is Section 80(D), subject to a tax deduction on the premium of your health insurance. The third one is Section 80(E). Under this, there is a tax deduction under the education category. Under the fourth section, there is a significant tax deduction on all types of donations. This is Section 80(G). Then comes Section 80(IA). It covers income tax deductions on all types of industrial activities. Section 80(TTA) permits the deduction of tax only to individual taxpayers and Hindu Undivided Families (HUF). The section stressing income tax deductions of the category that entails persons with disabilities is Section 80(U). Similarly, there are different other sections like Section 80(RRB), Section 80(QQB), Section 80(P), Section 80(LA), and Section 80(J). However, in this article, we will be discussing all the sections and subsections of Section 80(C). Section 80(C): Aim, Provisions, and Significance Section 80(C) of the Income Tax Act, 1961, provides certain tax exemptions to both individual taxpayers and Hindu Undivided Families (HUF). The taxpayers who fall under this eligibility criteria are allowed to claim a deduction of up to 1.5 lakh rupees. That means the income you generate from the different investment schemes is subject to an income tax deduction of the aforementioned limit. The different investment schemes that fall under the eligibility of this section are: Life Insurance Policies Superannuation or Provident Funds Education fees for a maximum of two of your children Payment made for construction purposes Equity Linked Savings (ELS), National Pension Scheme (NPS), Public Provident Fund (PPF), Employee Provident Fund (EPF), Fixed Deposits, Unit Linked Insurance Plan (ULIP), etc. What are the different subsections of Section 80(C) and what is their significance? There are four subsections under Section 80(C), and they are Sections 80(CCC), 80(CCD), 80(CCF), and 80(CCG). Different sections focus on different subjects related to income tax deductions. Section 80(CCC): This subsection of Section 80(C) focuses on tax deductions related to all categories of pension funds. So, as said earlier, you can claim a deduction of up to Rs. 1.5 lakh under this subsection. However, the provisions of this section are only applicable to individual taxpayers. Section 80(CCD): This subsection of Section 80(C) also encourages individuals to invest regularly under different pension schemes to increase their worth and ensure their social security. According to this section, contributions made by an individual taxpayer are eligible for an income tax deduction of up to 10% of the person’s salary, including the Dearness Allowance. The other subcategory of this section is Section 80 (CCD)-1. This section is specially designed for those individuals who invest under the National Pension System. According to this section, the investors in NPS are subject to an additional income tax deduction of up to 50,000 rupees. Section 80(CCF): Unlike sections 80(CCC) and 80(CCD), this subsection applies to both individual taxpayers and the Hindu Undivided Families (HUF). According to section 80(CCG), taxpayers can claim a maximum tax deduction of up to 20,000 rupees on only subscriptions to long-term infrastructure bonds. Section 80(CCG): This subsection of Section 80(C) allows individual taxpayers to claim an income tax deduction of up to 25,000 rupees per year on investments made in equity saving schemes, provided the limit is 50 percent of the invested amount. [B-02] Summing it up: Saving taxes decreases the financial burden on your expenses and encourages you to make more investments. However, knowing about these income tax deduction sections is mandatory, and claiming them is your right. You must be aware of all your tax-related rights and devise a smart tax planning strategy to open doors for a better future. If you like reading about these topics and want to learn more about taxation and different investment schemes, you should probably visit Piramal Finance.

08-11-2023

Personal Loan

The Highest Amount Individual Can Avail For Personal Loan

Even with perfect financial planning, unexpected expenses can rise anytime. Fortunately, a personal loan can help you manage any last-minute costs. Even though getting personal is simple, the process has specific challenges. Be it an emergency medical bill or a fancy vacation, a personal loan can be the best aid. You need to know the loan amount you are eligible for to determine how to obtain a higher personal loan. But, evaluating the amount might be challenging for you. This article will discuss how to avail the highest amount on a personal loan. [B-01] Personal Loan Limit As Per Different Income Brackets A personal loan is different for everyone. The essential contributing factor in availing of a personal loan is your earnings as an employee and a self-employed individual. Depending on the various income brackets, you can avail of the highest reasonable amount. Monthly Income Approximate personal loan amount Rs. 20,000Rs. 5.40 Lakhs Rs. 30,000Rs. 8.10 Lakhs Rs. 40,000Rs. 10.80 Lakhs Rs. 50,000Rs. 13.50 Lakhs Factors Considered by Lenders When Approving a Personal Loan Here are some vital factors that every financial lender will consider before approving a personal loan. Repayment Capacity Since personal loans are unsecured, banks or lenders carefully sanction any requests. There are several ways to determine a person’s repayment capacity. The lender will investigate your past debts and loans and check whether you cleared them on time. If the bank finds that you have an ongoing debt, they will check your salary. While comparing your salary to the total debt ratio, the lender determines if it is safe to approve the loan. Collateral or Security Most personal loans do not need collateral. But when the stakes are higher, the lender might ask you to submit collateral. Since you are borrowing a loan higher than your income bracket, the lender might be sceptical. This is because sometimes, even the most financially stable people might fall short of money. So, the lender must ensure they have backed the personal loan amount with collateral. The collateral asked by your lender includes available assets. These assets may include real estate property, business assets, vehicles, fixed deposits, etc. The valuables represented as collateral will be under the bank’s hold until your loan is cleared. If you fail to pay the personal loan, the lender will sell those assets and recover their loss. Age Both lenders and banks consider the borrower’s age before sanctioning a personal loan. They usually prefer the age group of 30-50 years. This is because the people in this age group are well-settled. Because they have enough years ahead of them to generate income. It ensures that they have enough time to pay the personal loan. Older people do not have a stable source of income. So, people above the age of 50 might find it challenging to get approved. And, the lender might need collateral to approve a personal loan for them. Repayment Tenure & Loan Amount Most of the time, banks and lenders prefer short repayment tenures. For instance, the lender will choose someone ready to pay the loan in 2-3 years instead of a person who opts for a ten years tenure for a personal loan. But, if your loan amount is higher, the bank or lender might understand and give you a bit of an extension. The best thing is to opt for a shorter price if you want a higher personal loan amount. Tips to Increase The Amount of a Personal Loan You can avail of a higher amount on a personal loan by following these tips. Focus On Improving Your Credit Score The credit score is a vital aspect of loan approval. Most lenders or banks check your credit score when you apply for a personal loan. Your credit score possesses detailed information about your spending habits. Lenders may investigate that to approve your loan application. The credit score criteria to boost the personal loan amount can differ for lenders. Hence, you must check the parameters before starting to plan for a personal loan. Keep a check on your credit score regularly. A better credit score increases your chances of getting a better loan, irrespective of your income bracket. Practice Money Management Efficient money management is the key to a good credit score. You must keep a thorough track of all your existing credits. If you have any ongoing debts or loans, make timely payments and keep a check on all the credits. Avoid taking unnecessary debts or loans if you do not need them. Increasing your debt repayments will increase your financial responsibility. In addition, you might even disrupt your credit score due to the number of repayments. Apply to One Place at a Time Most people think applying to many lenders increases their chance of getting a higher and better personal loan. But in reality, it might just make things more complicated. Lenders investigate your movement by an intra-institutional check. In this search, the lender tries to find whether you have applied for a personal loan elsewhere. If it comes to notice that you applied for multiple loans, the lender will most probably reject the personal loan application. The significant reason for rejection is that you might come off as desperate. Most reputed lenders reject personal loan applications in similar situations. This is because the person comes off as hasty while trying to increase their credit. [B-02] Conclusion People go for personal loans because of their simple and convenient nature. But when you want the best personal loan possible for yourself, you need to put in some extra effort. It is possible to get a higher personal loan amount. So, make sure you practice all the proper steps to avail of the highest personal loan amount. If you want to know about personal loans, visit Piramal Finance for similar blogs. You may also take a look at the products and services they offer for your needs.

08-11-2023

Personal Loan

Personal loan Interest rates, Charges and Fees in 2022

In today’s modern world, money is a necessity. People tend to take loans for their needs. Banks and different financial institutions provide personal loans. This loan comes with an interest. Interest is an extra amount to be paid above the principal amount. Personal loan interest rates are different for different financial institutions. Piramal is one of the leading providers with the best facilities, friendly environment and best offers. It provides you with many features and benefits while availing of a personal loan. Some of them are- There are zero prepayments when you apply for the loan. You can apply for loans ranging anywhere between 1 lakh and 10 lakhs. PIRAMAL provides you with a quick sanction of the amount with minimum documentation required. Customers can have flexible repayment schedules with friendly EMIs. The feature of clubbing is available in case of a higher loan amount. [B-01] Some detailed charges related to Personal Loan at PIRAMAL are- Processing fees4% loan amount + Taxes (applicable)Default Interest2% per month on default EMIDocumentation chargesUp to 0.5% of loan amount + Taxes (applicable)Prepayment charges Up to 5% of the prepayment amount + Taxes (applicable)Charges in case of Check Bounce500 INR + Taxes (applicable)Any Legal chargesAt actuals + Taxes (applicable)Charges related to recoveryAt actuals + Taxes (applicable)Stamp Duty chargesAt actuals + Taxes (applicable)Statutory charges At actuals + Taxes (applicable)Charges for Physical copy of Loan Repayment schedule (if required)500 INR + Taxes (applicable)Charges for change in Loan repayment mode (if required)500 INR + Taxes (applicable)Charges for issuing Duplicate NOC (charges are just for a physical copy) 500 INR + Taxes (applicable)Charges for Account statement (charges are just for a physical copy)500 INR + Taxes (applicable) What is the Personal Loan Principle Amount? This is the total amount of the loan. The interest is calculated on this amount. The time period is also decided by taking it in the term. The more the principal amount, the more is interest. The same goes for time. For example- you take a personal loan for 2 lakhs. What is the Personal loan Interest Amount? This is the extra money paid. The interest may vary. It can be different for different banks. It can also differ for states. The banks usually give offers to people for loans. They give loans and earn a lot. It is like a long-term investment for them. The amount they give, they get back. They also get a lot of money in form of interest. They can even take the property of the person if he or she fails to return the money within a given time. To save yourself from interest, the best option is to reduce the period. Prepayment of loans can be useful too. The amount for prepayment can be calculated easily. It is calculated by a home loan prepayment calculator. What is EMI? EMI: Its full form is equated to a monthly instalment. It is payable when you take a loan. You have to pay EMI every month. You have to continue paying until the principal amount dissolves. The EMI has 2 sections of money. One is the principal amount and the other is interest. The breakup of the amount gives EMI to be paid. The time period is also fixed. Even the date on which the EMI is to be paid is fixed. The documents which are required for a Personal Loan are- Any one of the Documents for identity proof Copy of aadhaar card Copy of passport Copy of voter Id Copy of the driving license Any one Document for address proof Copy of aadhaar card Copy of passport Copy of voter Id Copy of driving license Any one of the Documents to the process of KYC Copy of aadhaar card Copy of passport Copy of voter Id Copy of driving license Bank statement for at least the last 3 months Passbook with records of at least the last 6 months Id card of the employee Proof of salary Latest salary slips Details of Co-applicant in case of clubbing Factors which affect the personal loan interest rates- The factors that affect the interest rates for personal loans are as follows- CIBIL SCORE This is one of the major factors which decides whether you are eligible for a personal loan or not. It decides the personal loan interest rates for you. You should always aim to have a good CIBIL score. Anything higher than 750 is a good score. You can have a good CIBIL score by paying your EMIs on time. Just don’t let the check bounce. Always have enough money in the bank before the due date of the EMI. This will help you maintain a good CIBIL score. INCOME Your income is a major deciding factor. The more the income, the more are your chances to get the loan. Higher income allows you to avail of the loan of your choice. It also provides a wide variety of options. EXISTING RELATION The relationship you have with the financial institutions can also affect the rates. People tend to have close relations with some NBFCs. In simple words, being a regular customer. This can also affect the rates and concessions that you can avail. A previous banking or lending relationship can affect this to a great extent. [B-02] Conclusion Thus, it is important to know all the charges related to personal loans beforehand. The interest rates differ as per the financial institutions. So you need to choose carefully. Piramal provides with best facilities. The friendly officials can help you with all your financial needs. You can avail of a personal loan with ultimate ease. Piramal is a one-stop solution for you. Check out https://www.piramalfinance.com/

08-11-2023

Personal Loan

Which are the important features of Personal Loans you must know in the current year

Despite all the planning and saving, there are times in our lives when we need a large sum of money. In those emergencies, you often turn to banks for personal loans. While the benefit of a personal loan cannot be denied, certain technicalities push people away. This is exactly why it’s necessary to know the important features of a personal loan before you get one for yourself. In this article, we will look at what a personal loan is, how they work, and some of the top features of personal loans for the current year. [B-01] What is a Personal Loan? A personal loan is a loan where no collateral or security is required. A personal loan also requires very minimal documentation. This loan could be used for any personal financial need or an emergency. Personal loans are very easy to apply for, and the qualification requirement is not very strict either. While other loans would require a lot of paperwork and collateral, personal loans are designed in such as way that availing them is a relatively simple process for a person. Like any other loan, a personal loan also requires to be repaid with respective interests and in the agreed time. How do Personal Loans work? For you to get a personal loan, you must contact your bank or any other lender available to you. You could apply for however the amount of money you require and put forth ahead of the bank. The bank/lender would then check your credit/CIBIL score and determine if you’re trustworthy enough to be given that amount of money. Usually, banks require a CIBIL score of over 720 for a person to be given a personal loan. However, other lenders offer loans despite a lower CIBIL score. After checking the CIBIL score, the bank comes up with the amount they can give and the various payment tenures that can be chosen. There has been a stark rise in people taking personal loans in recent times. Ease of access to personal loans is a major factor behind their success. However, there are other important features you should know before going for a personal loan. Those important features are mentioned below. Important features of Personal Loan Rate of interest First, you would need to go over the interest rates of different personal loans. This will tell you how much you need to pay while repaying the loan amount taken from the bank. Currently, personal loans beings offered in India range from anywhere between 9.99% to 49%. The interest rates depend on your CIBIL score, which should be between 720-750. This score defines your trustworthiness, and lenders will approve your personal loan quickly if you have a good CIBIL score. No collateral Probably the best feature of a personal loan is that it does not require collateral. Since personal loans are unsecured loans, banks don’t ask for property papers as collateral, as is the case with other loans. A personal loan is strictly based on your ability to repay the loan which is why lenders/ banks ask for your monthly income and your credit score. Fewer documentations People often take personal loans in case of any emergency, which is why these loans are required to be disbursed quickly. Since other loans like home loans, education loans, etc., require a lot of documentation, it is often that banks take a significant amount of time to pay them. This is, however, not the case with personal loans. These loans require a lot less documentation and hence are given in a short time which is helpful when money is needed on short notice. Flexible usage While other loans such as car loans, home loans, and educational loans can only be used for that specific purpose, personal loans do not have this rigidity attached to them. A personal loan can be used for any necessity, such as weddings, travel, medical expenses, etc. Multi-purposeness of a personal loan is one of the very important features, and this is why many go for personal loans when in need of financial help. Payment flexibility Another key feature of a personal loan is that it allows the loanee to choose from multiple payment timelines. You could choose to repay the loan in a short duration if you have a good salary but could also choose affordable monthly payments if you require more time. A personal loan tenure could be anything between 12 months to 60 months which gives the loanee enough time to repay the loan amount as per their financial standing. Flexible loan amount Another important factor that you must know about is that personal loans offer flexible amounts. You could take a personal loan from anywhere between 10,000 to more than 40 lakh. No matter what you need money for, be it a small amount that you need for a smartphone or you need a vast sum for a wedding, you could go to a bank and ask for a personal loan based on your salary. Tax benefits Another essential feature of a personal loan in 2022 is that you could get a tax deduction. You could be eligible for INR 2 lakh as per section 24B on your personal loan based on the usage of the loan amount. The bank would require you to see an adequate document for you to collect the tax benefit on the personal loan. [B-02] Conclusion In conclusion, personal loans have many benefits, but you need to consider some above-mentioned factors. These factors will help you curate the best personal loan for you. You must make sure to repay the loans on time so your CIBIL score remains healthy, and you could take other personal loans in the future as well.

08-11-2023

Know More

Personal Loan Transfer: Is It Beneficial To Transfer Personal Loan?

You have undoubtedly heard of personal loans and may have used a few yourself. With so many financial obligations to take care of, there comes a time when you may feel overwhelmed and wonder how to manage these altogether. One option is to transfer your personal loans, which will make your monthly payments easier and provide you additional access to credit and raise your CIBIL scores. [B-01] What is a personal loan balance transfer? When you transfer the outstanding personal loan balance from one bank to another, you are using the personal loan balance transfer facility. This generally happens when a new bank offers a much lower interest rate than what has been previously provided to you. Interest rates could also be because of better services and benefits being offered by the new bank. The main reason you can think of availing of this service is to reduce the burden of paying a heavy interest rate and save some extra money. Transferring the personal loan to the new bank would mean paying the excess amount at a lower interest rate. It would also mean that you should be very careful while going ahead with the new bank and signing up for a new transferred loan with them. How does the balance transfer for a personal loan operate? In case you were curious, here is a brief example to help you understand the procedure for moving a loan from one bank to another. For instance, suppose you now have a personal loan from an “X” bank with a higher interest rate and are looking to switch to a “Y” bank for a loan with a lower interest rate. Your name will be used to open a new personal loan account at the “Y” bank with a more affordable interest rate. It will pay off your personal loan with the “X” bank, and if there are any other charges, it will ask you to incur those in addition to the processing fee for your new loan account. Benefits of transferring a personal loan A personal loan transfer may or may not be advantageous to you, depending on certain circumstances. It would be best to weigh the advantages and disadvantages before applying to a new bank. Here are a few situations that may be advantageous to you as you prepare to move your personal loan. Interest Rate Interest rates are one of the key causes of personal loan transfers. It’s possible that you had to accept the loan at a higher interest rate when you took out this loan in the past because you had no other choice. You should always be on the lookout for options where banks decide to offer better interest rates. You should consider accepting the loan if the new bank offers an interest rate of at least 1% or more than 1% lower than your previous loan. A difference of less than 1% might not significantly impact how quickly you can repay the loan in the long term. Additional services Transferring your personal loan could also be advantageous if the new bank offers more services than your old bank. This feature largely depends on your credit history, CIBIL score, and income fluctuations. You might be qualified for services like no processing fees or EMI waivers for the final payment. The extended term of the loan The term, or tenure, of the loan, is frequently mentioned at the time of transfer for personal loans. You can choose to increase or decrease the loan’s term based on how much money is still owed and the interest rate is given. Loan in the early stages You always pay the interest rate when you take out a loan, regardless of the type. Simply put, when you begin making EMI payments, the interest rate will be covered before moving on to the principle. Therefore, in a perfect world, interest payments would account for more than 70% of the first-year payment. Therefore, you should look into a personal loan transfer at the beginning of the loan itself if you think the interest rate is too high. Since most of the interest rate would have already been deducted from your existing loan, transferring the loan in the second half will not result in any financial savings. Increase in the loan capacity The majority of banks have the option to add to an existing loan, including a personal loan. These services are typically provided at very affordable costs. They may even be of assistance to you if times are tough financially. While you want to transfer the loan, it is preferable to negotiate this alternative to prevent you from taking out more loans in the future. Interest rate specific to the workplace Most offices work in tandem with various banks, providing employees with loans at lower interest rates. Transferring the loan may be advantageous if your business has a similar connection with a bank offering a cheaper interest rate. [B-02] Final thoughts It is always daunting to take a loan, be it personal or any other kind. You should always ensure that when you transfer the loan, it is similar to taking a new loan. So, until and unless there are offers that are irresistible, do not go for a transfer. Always compare the pros and cons of transferring before signing any new document. If you feel that the benefits are less or similar to the ones you are already getting, it would be advisable to stick with your existing bank and try, and finish off the loan, unless otherwise needed to change with no options available.

08-11-2023

Business Loan

Important Things To Know About Online Business Loans In India

A company’s ability to thrive in today’s market is tied to its ability to make more money. But fast expansion is not possible without adequate funding. If you do not have the finances to support your business ideas, a small business line of credit is the best option for you. Businesses take out a small business line of credit to cover anticipated and unexpected costs. The amount of money you can borrow depends on your business’s size and growth prospects. Here are some important points to keep in mind if you want to take advantage of a business line of credit in India. [B-01] What is a Business Line of Credit A business line of credit is a sum borrowed from a bank or other lender to grow a business. It means expanding the financial well-being of a company through various means. This includes increased investment, business development and so on. This funding is useful for firms because it allows them to meet their current and future growth needs right away. Why Do You Need a Business Line of Credit To help your company grow, consider applying for a business line of credit. You can invest the funds in certain areas such as new machinery for expanding facilities, hiring new staff members and more. You can also use the money for the management of regular operating expenses. A business line of credit is very useful for maintaining productivity and capitalizing on opportunities. Hence, India’s SMEs still rely heavily on the banking industry for their funding needs. What is an Online Small Business Line of Credit or Business Loan A small business line of credit is a viable alternative for financing a company. But, it can be difficult to secure for several reasons. Business loans are now being processed and dispersed digitally by NBFCs and direct selling agents. Online applications and approvals mean you can get the money you need from your home or office. Getting a small business line of credit for a business online has become increasingly common among entrepreneurs. This is because banks have stringent requirements for business loan applicants and collateral. Benefits of Online Small Business Line of Credit These are the benefits of taking a business line of credit for new businesses: 1. Quick and Easy Application Procedure With an online business line of credit for new businesses, avoid the hassle of filling out long applications. The application is short and can be completed entirely online. You can submit the form and any supporting documentation online. 2. Flexible Tenures Paying back an online business line of credit for new businesses is simple since you can adjust the terms to suit the borrower’s needs. A small business line of credit for new businesses has terms ranging from one year to five years but this can vary depending on the lender. 3. Flexibility There are no restrictions on how funds can be used from the business line of credit for new businesses. Instead, you can spend the money you borrow on anything that helps your company grow. For example, online lenders offer various types of business loans including capital loans, lines of credit, equipment and term loans. 4. Top-Up Loan Facility If the amount you borrowed is not sufficient to cover all your expenses, you can receive extra money through the same business line of credit for new businesses through the top-up loan service. The bank will merge this new business line of credit for a new business with your existing balance on that account and you will simultaneously repay both. Eligibility Requirements To be eligible for a business line of credit: You must be between 21 and 65 years of age Your business must be a minimum of 3 years old You must be an Indian citizen or resident You must be self-employed under any of the categories: Business owner Sole proprietor Partner of a partnership firm Promoter/director Doctor CA Architect You must have a CIBIL score of 750 or more In addition, some banks also require you to either have a minimum annual revenue or own at least one property. Documents Required Here are the documents required for an online business loan: ID proof documents Address proof documents PAN card Proof of business ownership Company’s financial documents Bank statements and other financial statements Application Process You have the option to apply at your nearest bank branch or online. Once you obtain the application form from your lender either in person or on their website, make sure you fill out the form accurately and that all the information you enter in the form matches the information in your documents. Attach or upload all the supporting documentation and submit the form for approval. Once your business loan has been approved, the funds will be transferred to your bank account. How to Ensure Loan Approval Consider the following recommendations to ensure your small business line of credit is approved: 1. Maintain an Excellent Credit Score If your credit score is high, it shows that you are responsible with your money and are less likely to miss payments. Yours or the founder’s credit history determine the business line of credit eligibility. The company’s payment history is also important. Loan eligibility and interest rates are both improved with a credit score of 750 or higher. 2. Show a Strong Cash Flow in the Organization The lender will examine your business’s cash flow estimates to verify if it is adequate for the loan amount you are requesting. Past filings and other financial information will also be examined. [B-02] Conclusion You can take a small business line of credit for various reasons. For example, to start a new business, grow an existing company or pay bills. There are several perks related to a small business line of credit. These perks enable the founders to run their companies. They also help the founders show their potential. But, you must apply for a business line of credit online only after carefully weighing the pros and cons. For more articles like this one, visit the Piramal Finance website and receive more detailed information and guidance on a business line of credit.

08-11-2023

Home Loan

Most important factors of loan against property you should know in 2022

A loan against property can benefit you if you plan to expand your business. A loan against property is ideal for businesses of all sizes, whether they need the money to pay employees or suppliers, stock merchandise to meet rising demand, or pay for operating costs. Due to a secured status and lack of end-use restrictions, loans against property have been in extremely high demand. A loan against property is a loan that financial institutions provide against existing property. Other loan types, including project, personal, and company loans, fall short compared to loans secured by a property. It happens because you can get a larger loan at comparatively lower interest rates. [B-01] Although taking out a loan against property in 2022 is very simple, there are some factors you should be aware of. Thinking of getting a loan against property? Take the following factors into account. Property valuation and an appraisal are performed. The lender will determine how much principal amount you can take as a loan against the property. It depends on the value of your property. The lender will first check and access your property. After this, they will run it against a value proposition and give it a valuation. NBFCs check the paperwork to ensure the current status of the property. They also review documents to ensure the property is freehold, new, and has a clear title. Co-owners can also participate in the process to increase their eligibility. If all goes according to plan, the loan will be approved between 50% and 70% of the market value (of the property). To measure the market value, use the Loan-to-Value (LTV) ratio determined by the lender. Interest rates are lower. Compared to business and personal loans, which are unsecured, loan against property (LAP) loan amounts are issued at lower interest rates. This is because LAPs come with security as you pledge property as collateral. Due to this, the interest rate will be lower with better loan security and a smaller margin amount authorized. It lessens the likelihood that the lender will suffer significant financial losses in the event of non-repayment. You can further decrease the interest rate by following specific guidelines. You can convince the lender to provide you with an overdraft and credit limitations on your LAP. Then, you will only have to pay interest on the amount you use from the loan rather than the entire sum. In addition, the policies of the lender you apply to will determine the interest rates. It will be based on your credit history, income, and other factors. Additionally, you will have to choose between floating or fixed interest rates. Fees and processing times should be considered before applying. Depending on their terms and conditions, processing fees are applicable on every LAP sanction by the lending banks. Processing fees might be between 0.5% and 3% of the approved loan amount. After approval, this could be charged upfront or subtracted from the loan’s principal. Stamp duty fees and convenience fees for changing interest rate structures could also be assessed. To calculate the actual loan cost, you must also consider the prepayment penalty and foreclosure costs. A LAP also takes longer to process than a personal loan, which may often be done in a few days. The reason is simple: lenders inspect the property for encumbrances and conduct a valuation assessment. Loan duration and repayment options are available. The loan’s duration is also a significant consideration to take into account. Lending institutions typically give loans ranging from 5 to 15 years. As long as the applicant repays it before they retire, the period can go up to 20 years. Therefore, if you are a paid individual in your 40s searching for a LAP, you can take a loan with a 20-year term, presuming you will retire in your 60s. Find the right balance to balance the loan’s term and your EMI payments. It is crucial if you choose a loan with fluctuating interest rates because it would consider the compounding effect. Even though extending payments over time lowers the monthly EMI burden. A longer tenure may result in higher interest payments overall. Through a shorter loan tenure, you can ensure interest cost reductions. There are tax advantages. Unlike personal loans that have no tax benefits, LAP is more attractive. LAP provides you with better interest rates, and you can also get tax benefits. As per the Income Tax Act, a person who earns through salary can avail of interest exemptions. However, it is only possible when you use the loan to purchase a new home. Similarly, certain benefits are also given to business owners as tax rebates for the interest they paid against LAP. Having a thorough understanding of the lender’s requirements is necessary. Your eligibility for a LAP depends on the specific standards of that financial institution. For example, for a loan of Rs. 50 lakh, bank A might demand that you need to be 25 years and above, whereas bank B might need you to be 21 years old before they grant you a loan of Rs. 30 lakhs. Understand the requirements of the lender to determine if you qualify. Credit (CIBIL) score will be checked. A high CIBIL score is crucial when the lender assesses the LAP. To get low-interest LAPs, you should have a strong credit score, typically over 750. Start making on-time EMI payments. Also, utilize less than 30% of any credit limit given to you to raise your credit score. [B-02] Conclusion Aspects like interest rates, how you handle payments, and loan tenure are important before selecting a LAP sanction. Your age, income, payment history, and creditworthiness will affect the loan terms. Therefore, it’s necessary to investigate and assess each LAP financing alternative. Piramal Finance is the best option if you are looking for a reliable and trustworthy lender. The company offers LAP loans for all your needs through a user-friendly online application process. Moreover, all the loans come at affordable interest rates with flexible payback schedules.

08-11-2023

Personal Loan

Reasons to Take a Personal Loan this Diwali

For Diwali, you put up rows of lights all around the house. Getting your family and friends together, making them a delicious meal with lots of desserts, and then giving them a gift at the end. This makes the festival sound like a beautiful celebration of love, happiness, and community. But from a financial point of view, all of this will cost you a lot of money and will almost certainly go over your budget. During the party, you can see the happiness on the faces of your loved ones. You can’t let that go to waste to save money. But there is an affordable way to have a great Diwali like you’ve never had before. You read that correctly: you can apply for a personal loan to help you pay for your expenses this Diwali. You want to know how. Even though we don’t need a loan to celebrate Diwali, you’ll be surprised to find out why you might want to get an instant personal loan this holiday. [B-01] Top Reasons to Get a Loan Right Away for Diwali No-cost EMI Just before Diwali, most appliances and gadgets are sold on free EMI. Now is the best time to buy any gadgets or electronics you want. You can use your card to pay the deposit and buy the device if you get an instant loan. Festive Sales As soon as the holiday season starts, all e-commerce sites offer deals and discounts. They call these “holiday sales.” People will be able to buy more of the product because the price has decreased. This is good for the brand and the e-commerce business. Even from the customer’s point of view, it makes sense. This is because they get the same goods for less money than they would have if there hadn’t been a sale. Buying Property Now is the best time to buy a house or other piece of land. Some of the housing incentives the bank offers during Diwali to get people to take out a home loan are a discount on the down payment, no processing fees, and even a free interest period. All of these are good for you. Because home loans are bigger commitments, it would be very helpful to start saving. Getting an instant loan could be a great way to pay for the down payment or reserve one for yourself. Since the amount you get from an instant loan won’t be too big, it’s easy and quick to pay it back. Gold Purchase on Dhanteras All brands, like Tanishq, Malabar, and many more, offer deals like free shipping, discounts, and so on. Why not buy gold at a certain time? Diwali is a festival that honors Goddess Laxmi, and one of the most important parts of the ceremony is buying gold. Let’s say you want to buy a gold chain this year but might need more money. You plan to wait five months and buy it when you have more money. But think about whether you’ll be able to get this offer at that time. Will it be a lucky thing? So why not just buy it now? Use an instant loan to buy gold. Get the money in two hours to make your loved one’s day special. There are flexible and affordable ways to pay back the loan. Diwali: India’s Peak Buying Season People spend the most during Diwali. They spend money on clothes, gifts, homes, families, trips, etc. During the holiday season, there are sales on everything from clothes to big-ticket items. People spend money on holidays like Bhai Dhooj, Diwali, Karvachauth, and Dhanteras. You also have to spend money on yourself and your family during the holidays. It might be too much for your budget if you buy many big things in a single month. To deal with the sudden increase in expenses, you need more money. Also, wedding season comes right after Diwali, so people often need new clothes and a bigger budget. The easiest and most convenient way to deal with the situations above is to get a personal loan. On a personal loan app, you can fill out an application for a loan. Through the app, you can get the amount of money you want with the least amount of paperwork. After loan approval, the money is put into your account quickly. Things You Can Also Do This Diwali With a Personal Loan Renovating Your Home or Office Around Diwali, many people try to change their furniture and give their homes a new look. Diwali is a great time to improve your home and get everything ready for parties, even if that means buying a washing machine, dishwasher, and smart TV. This is the time of year when most home improvements, especially painting, are done. Buying Electronics The best time to buy expensive things, like DSLR cameras, air conditioners, vacuum cleaners, and other gadgets is around Diwali. It makes sense if you keep putting off buying these things because your budget is tight and you only have a little cash on hand since their prices are always on the high end. But since Diwali is coming soon, you can start taking advantage of all the deals and sales immediately. Taking a Vacation Diwali is one of the best times to go out and calm your soul during the holiday. It is a great time to plan a trip because everyone is always in a vacation mood. Celebrate Diwali by taking your family to the hills or a beach resort. By getting a personal loan, you can go to your favorite place even if you only have a small amount of money. [B-02] Conclusion Some people even look forward to changing their homes around this time. It makes perfect sense to meet your loved one’s needs, even if your budget doesn’t allow it, and to give in to the urges that the holiday season calls for. No one can avoid the charm of Diwali, from getting new clothes and gifts to planning family get-togethers. Getting a personal loan could help you stick to your budget and pay for any extra costs for Diwali. You can learn more about personal loans by visiting Piramal Finance in detail.

08-11-2023