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Personal Loan

Compare And Apply For Personal Loan – Low-Interest Rate And EMI

When applying for a personal loan, interest rates begin at 11%. The interest rate on your loan will be determined by several factors, including the loan amount you request, your credit history, and the time you take to pay it back. Keeping a solid standing with the lending institution and a high credit score will help you negotiate a cheaper rate on your loan. [B-01] Reasons to Get a Personal Loan When should one consider applying for a personal loan? There are minimal restrictions on how a personal loan may be used because it is an unsecured loan that does not need collateral. It has many potential applications, including debt consolidation (whether from other loans or credit cards), making large purchases when you don’t have cash and emergency scenarios. Neither trading stocks nor speculation is permitted with this. Personal loans are frequently used to cover unexpected costs in areas such as business or higher education, finance a trip, stock up on luxury electronics and home appliances, cover the cost of a wedding or other special event, pay for unexpected medical bills or home repairs, and so on. It can also be put toward acquiring a car if the personal loan’s interest rate is more attractive than the auto loan. Therefore, personal loans may be useful for various purposes, including covering anticipated and unexpected costs. Things to do After Closing a Personal Loan If you have recently repaid or had your personal loan foreclosed on, you might believe that your legal responsibility for the debt has ended. But alas, that is not the situation. You should do a few things when you pay off your personal loan. No Dues Certificate (NDC) After the debt is paid in full, the lending institution issues a “No Dues Certificate” (NDC). You should get this as soon as possible after paying off your debt, as it is a crucial piece of paperwork. That so, keeping this record for a long time is also a good idea. You may rest certain that your reimbursement is legitimate thanks to this certificate. You can’t show debt satisfaction without this paper. This document serves as proof that your prior loan has been repaid if you want to apply for a personal loan shortly. If you are paying off your loan in full with cash, your lender will likely issue this paperwork immediately. The NDC will be issued by the lender and delivered to your registered address or made available for pickup at the lender’s branch office if you are making a payment by cheque, NEFT, or another method. Statement of Account (SoA) The SoA and NDC provide evidence that all of your bills have been paid in full and on time. Certain lenders supply this paper as a courtesy, but it is not required. This document may be useful and should be obtained if made available by your lender. But you should also check the credit report for any irregularities. Fixing problems can be done through the SoA. Collection of unused cheques: It’s also a good idea to round up any unused cheque leaves after you. Closing a loan concludes with collecting the No Dues Certificate and any unused checks left. After the loan closes, you should check your credit. This is only a suggestion. After the closure procedure is completed, verifying the credit score is optional. The score should be identical, but you should double-check, just in case. The best time to check your credit is immediately after the loan is paid off, but you should do it at the latest within two years. Interest Rates on Personal Loans and How They Are Affected Interest rates are determined by lenders largely based on their cost of funds and the credit risk assessment of loan applicants. Factors like your credit history and the economy’s health can significantly impact the interest rate you pay on a personal loan. Evaluation of Financial Capability Loan interest rates are often determined partly by a borrower’s credit history, as reported by a growing number of lenders. Personal loans with reduced interest rates are available to those with higher credit ratings. Keeping a credit score of 750 or above is thus recommended. Maintaining a good credit score requires responsible financial behaviour, such as paying off debt on time and not applying for new credit or loans frequently. It’s important to remember that inaccuracies can impact credit scores in a report. Applicants should monitor their credit reports regularly to correct any discrepancies before they hurt their credit scores. Income Higher earnings mean a more secure ability to repay the debt. The lender’s exposure to credit risk decreases as a result. Therefore, many personal loan providers provide preferential interest rates to higher-income customers. Employer When determining the interest rate for a personal loan, many banks and credit unions look at the applicant’s job history. Generally, interest rates for salaried workers are lower than those for self-employed individuals because of the greater predictability of a salary. Lower credit rates are typically provided to candidates with government or PSU jobs because of the greater job stability and income predictability they enjoy. Personal loan applicants who work for multinational corporations or other well-regarded private sector firms also tend to fare better during economic downturns. A pre-existing banking or loan connection with the creditor: Existing banking or lending customers sometimes qualify for preferential interest rates on personal loans from a variety of lenders. Therefore, individuals seeking personal loans should first explore options from financial institutions (banks or NBFCs) with which they already have a pre-existing connection. [B-02] Final Words The Personal Loan from Piramal Finance is the easiest method to receive a loan for your use. It deviates from the standard practice of lending. A personal line of credit allows you to access your loan whenever and wherever you need it. The best part is that you only pay interest on the money you spend.
08-11-2023
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Personal Loan

Best Tips to Pay Off Your Car Loan Faster

Car loans have changed the way people in India think about owning vehicles. Many urban Indians don’t think it’s a big deal to buy a car today since banks and other financial institutions make it easy for them to get car loans. It’s easy to pay car loan EMIs each month in addition to other monthly bills. But, it costs more in interest. If you have the money, you should try to pay off the car loan early to save money on interest. [B-01] Should You Pay Back Your Car Loan Early? It might seem like a good idea to pay off your loans early, but there are some things you should keep in mind: Find out your existing balance and any early repayment penalties Focus on all aspects of your car loan before deciding if you want to pay it off faster. Some lenders make it hard to pay car loans as early as possible, as they’ll get less money in interest. If your lender lets you pay off your loan early, ask if there’s a prepayment penalty. Next, ensure that any additional payments are applied to the loan’s principal by checking your balance and your account. Some financial firms will automatically put extra fees toward interest instead of the principal, or they will hold the money as a credit for your next payment. Calculate how much money you will save Once you know how much you owe and if your lender has prepayment penalties, you can use an auto loan calculator to figure out how much you’ll save if you pay off the loan early. Make sure that the money you save is greater than any prepayment fees you may have to pay. Even if you don’t save much by paying off your loan early, there may be other advantages that make it worth it. For example, paying off your loan early could help you improve your credit score and give you more money to spend each month. Tips for Paying Off Your Car Loan Quickly No matter how much your monthly car payment is, there are five different ways that car owners can pay off their car loans quickly: Reduce your loan duration The length of time a borrower has to pay back the amount borrowed from the bank is called the loan duration. Most terms are measured in months, and they can last anywhere from 24 to 84 months. The longer the term, the less you’ll have to pay each month. But smaller monthly payments don’t mean you’ll pay off your car loan faster. Car loans can take up to seven years to pay off in full, which is a big chunk of your main working life. Choose to shorten your loan’s term to a number that best fits your personal financial goals. Be sure to use a financial calculator to figure out your monthly payments. Try a different budget To pay off a car loan faster, you must put your current income toward your most important financial goals. If you don’t already have a spending plan, sit down and write down all the money you expect to make this month. Make categories for your expenses, like your car loan. Find a Side Hustle The best way to produce wealth is to increase your income. Your ability to pay off your car loan more quickly will increase with your ability to earn more money. Utilize your resources to find ways to increase your monthly income. Ideas for increasing your monthly income include the following: Taking on a second job Freelancing Putting in extra hours or weekends at your primary job Hold a garage sale Creating and promoting products Make sure to pick a sustainable option to lessen exhaustion and burnout. Refinance One of the fastest ways to pay off a car loan with a high-interest rate is to refinance your current auto loan. As a person’s credit history gets longer and their credit score goes up, they may be able to get better, lower interest rates. Pay additional amounts Unless you make extra monthly principal payments, the amount owed on your auto loan won’t be paid off any faster. Most people select one of three methods to make additional payments on their car loans: Paying Twice a Month: Making two payments that are greater than your monthly bill will help you pay off the principal more quickly while also lowering the interest that has accumulated. Paying the Principal: Make principal payments, not interest payments, which reduce the total cost of the vehicle. Rounding Up: Add a monthly payment to the rounded amount of your existing car loan. [B-02] Final Thoughts Paying off your car loan early might not always be the best course of action. The savings won’t be worthwhile if you have to pay prepayment fees or risk affecting your credit score. The two best ways to reduce the length of your car loan are refinancing or simply making more payments. Even if it only amounts to a few extra amounts per month, you can lower your debt and reduce your loan tenure. For more information, you can visit the Piramal Finance website and read more on car loans and car loan EMI.
08-11-2023
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Personal Loan

Along With Personal Loan, Different Loans Available For Senior Citizens

Many individuals find it challenging to get a loan. Getting a loan is challenging even for professionals who have a good credit history. Also, for those who provide evidence of their capacity to repay the loan. Still, for the unemployed or senior citizens, the burden is double. Senior citizens are in this latter group. Loans for senior citizens are often not approved due to the lack of a stable source of income. Finally, there’s hope. Banks are starting to relax their policies to benefit senior citizens. In this article, we’ll tell you about all the available loans for senior citizens. [B-01] What are the different Loans for Senior Citizens along with Personal Loans? Personal Loan Anyone can experience a financial emergency or crisis regardless of age or circumstances. Hence, it’s possible to have money issues even if you’re a senior citizen. Anything can cause this, ranging from an unexpected bill to a health crisis. A personal loan for senior citizens can help you climb out of a tight spot. Suppose you are a senior citizen and need urgent money. In that case, you can receive a personal loan and put your pension as collateral. Individuals over 60 are eligible for personal loans tailored to their needs. A personal loan for senior citizens and a normal personal loan don’t differ much. Interest rates and other criteria are the primary differences between the two loans. Having a pension is the single most critical necessity for seniors. Most financial institutions will not provide personal loans to senior citizens. That’s because they cannot establish that they get a stable income. Hence, having a steady income stream is crucial for a personal loan for the elderly. Your monthly income when determining your suitability for a personal loan is crucial. Lenders rarely provide personal loans to anyone over 60. That’s because most elders don’t have a consistent income source. Nonetheless, you can still qualify for the loan if you get a monthly pension. Pensioners in India can apply for a personal loan. The loan amount for senior citizens can be 12-15 times their monthly pension payment. After the loan approval, the lender will draft your monthly pension to cover the loan’s EMI. Yet, you will need proof of your pension to get this loan. Home Loans Getting a home loan is an uphill battle even for youngsters with reliable income streams. In the past, getting a house loan as a senior person was a hassle. But banks have streamlined the process. After all, you can fulfil your dream of homeownership at any age. Senior citizens can ease the procedure by applying for a joint home loan. They can do this if their prospective co-borrower is still employed. Moreover, you can get extra tax advantages if the co-applicant is a shared landowner with you. Having a female co-applicant also qualifies you for preferential interest rates. But don’t apply to many banks at the same time. That’s because doing so may lower your credit score. You can use the internet to determine: Whether you qualify for a loan How much you may expect to pay back each month in instalments? Which banks are most likely to lend to seniors? With a lower loan-to-value (LTV) ratio, you’ll be able to borrow more money and pay off your mortgage faster. LTV indicates the amount of the property’s worth that the lending institution funds. To maximize your financial security, choose a loan-to-value ratio as minimal as possible. Reverse Mortgage Loans Reverse mortgage loans came into India in 2007. But they had existed for at least two decades in the US. RML is the reverse of a home loan that lets the customer use collateral other than their house to secure a loan. Plus, the repayments will be like any other loan repayment. To qualify for RML, a citizen must be at least 60 years old and a legal owner of a primary house. If the borrower wants to apply with someone else, that co-applicant must be at least 55. There is a hard cap on the repayment period, often between 15 and 20 years. After this time, if there is still a balance owed on the loan, the borrower can pay it off. Then, he can regain full possession of the property. Yet, if you’re unable to pay back the loan, the bank will confiscate your house and sell it. Compared to traditional loans, RML doesn’t need income verification or stellar credit history. Access to RML is a great benefit. That’s because it ensures the borrower can afford to cover daily costs and essentials. Lenders thought it would be a huge success in India, but that hasn’t happened. Several factors are at play, but one of the most important is a strong personal connection to the home. Many Indian seniors stay in the same home for decades. They do so intending to leave it to their children and grandchildren as an asset. Greatest Loan Amount of RML As another factor, the greatest loan amount varies from Rs 50 lakhs to Rs 1 crore, based on the lender. But the value of a home in a hot housing market can reach 3 crores. Hence, the RML program is not very appealing to those who create their homes there. Moreover, senior citizens fear not being able to repay the debt after the term and losing their house. Hence, RML has become a less popular choice among senior citizens. These factors depend on the present and future finances of the individuals concerned. Hence, if you’re seeking a helping hand but have some financial stability already, RML could be the way to go. [B-02] Conclusion And there you have it. A complete guide on the different types of available loans for senior citizens. Many loans are available for senior citizens. They are Personal loans, Reverse Mortgage Loans, and Home Loans. Make sure you read all the documents and pick a loan you’ll be comfortable paying back. Are you also in need of a home loan or personal loan? Apply for a home or personal loan with Piramal Finance right now!
08-11-2023
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Income tax return

Everything You Need To Know About Penalties For Late Filing Of Income Tax Returns

Every taxpayer needs to file tax returns with the income tax department every year. The document needed for this is known as an Income tax return in which all the income earned during the previous financial year is declared. It can be fined monthly or quarterly based on whether the taxes had been paid earlier. What if you fail to file the ITR on time? Read on to know more. [B-01] Deadlines for various ITR filing categories: There are different deadlines for various persons and identities for filing ITR. Here are the details of the different categories: For the people or entities for whom tax audit is not applicable, need to file their ITR by July 2022. People or entities who come under tax audit except for the cases where transfer pricing is involved, have to file ITR by October 31, 2022. Those individuals who come under transfer pricing, have the ITR filing deadline as November 31, 2022. December 31, 2022, is the last date for filing a revised ITR or late filing of an ITR. Repercussions of missing the ITR deadline Failing to file the ITR by the given deadline, can lead to penalties along with interest charges. There are also chances of suspension or termination from the job. Here are the common consequences: i. Penalty: Those with an annual income of over Rs. 5 lakh have to pay a penalty of Rs. 5000 but if ITR is filed between December and March 2023, the penalty increases to Rs. 10,000. Those within the income slab below Rs. 5 lakh, who fail to file their ITR before March 31, have to pay a late fee of Rs. 1000, as per Section 234F. This remains unchanged even if the filing is done before December 31, 2022. Those with a total income of more than Rs.5 lakh per annum will have a late fee of Rs. 5000 on filing the ITR between August 1 to December 31, 2022. Senior citizens between 60-80 years having an annual income of more than Rs.3 lakhs, and those above 80 years with annual income exceeding Rs. 5 lakhs, will be penalized for not filing ITR as per section 234F. ii. Interest payment: An interest of 1% is chargeable every month on the unpaid tax amount when ITR is not filed by the due date. This is according to Section 234A. This interest starts accruing after the tax filing due date, i.e July 31 of the financial year. The longer the delay, the higher will be the interest accumulated. If a person has taxable income but failed to file ITR or in case less amount of income is mentioned, he has to pay 50% of the total tax on the income for which the return wasn’t filed. iii. Penalty under Section 271H There will be a penalty of Rs. 10,000 to Rs. 1,00,000 along with the penalty for filing a late ITR under Section 234 E. This is for those who fail to file TCS or TDS before the deadline. Rs. 200 is the penalty for each day as per Section 234E, till the payment of TDS or TCS. iv. Prosecution for tax evasion: If an individual fails to pay tax even after the deadline then under Section 276CC of the Income Tax Act for tax evasion, he could be imprisoned. First IT department will issue him a notice under Section 142(1), 148, or 153A, and then the prosecution will be the last step. When the amount of tax is more than Rs. 25 lakhs, the imprisonment will be for at least 6 months and can extend for up to 7 years. Apart from this, other cases will have a penalty as well as a minimum of 3 months imprisonment, which is extensible up to 2 years. Penalty on people with incomes below the taxable limit on filing ITR late: When the gross income of an individual or organization is below the taxable limit, no penalties are filed for non-filing of ITR. But here are some exceptions to this: Those having over Rs. 1 lakh electricity consumption expenses. Indian residents have income from foreign assets. When total deposits are over Rs. 1 crore in one or multiple current accounts in a bank. Expenses of foreign travel exceed Rs. 2 lakhs. Process of filing late ITR online: If you missed the deadline for filing ITR, you can file it till March 21, 2023, online, by following the steps mentioned below: Login to the e-filing website and go to the ‘services’ tab. Click on ‘condonation request’, choose the option ‘Allow ITR filing after time barred’ and click continue. Choose ‘create condonation request’ on the next page and fill in all the required details. Upload the ITR and click the ‘submit’ button. Select the ‘e-verify’ option so that after the condonation request approval, ITR can be processed. The status of the condonation request can also be tracked online. Another way is to know your assessing offer and send a condonation delay request letter in person before ITT filing online. [B-02] Conclusion The process is done online and through ITR Form 16 which is regularly updated and comes with new features. This is to ensure smoother and more efficient completion of the process in less time. Tax payment cant is completely avoided by reducing to some extent by investing in term insurance plans, Unit Linked Insurance Plans (ULIPs), Guaranteed Savings Plans or Health Insurance. Tax planning is crucial for every individual and filing ITR on time is the only way to avoid heavy penalties. Check out the Piramal Finance website and explore their services to save tax.
08-11-2023
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Tax Savings

Tips to save your LTCG tax in 2022-23

Capital gains are the profit you make when you sell an asset at a price higher than what you bought it for. For this purpose, capital refers to property, jewellery, shares, bonds, securities and vehicles. The profit you earn falls in the income category, and you would have to pay tax on them as per the Income Tax Act 1961. Capital gains are of two types; short-term capital gains (STCG) and long-term capital gains (LTCG); you have to pay tax on STCG and LTCG as per the applicable rates. Want to find ways how to save LTCG tax in 2022-23? Read on. [B-01] Understanding Capital Gains Here is a brief overview of capital gains based on the holding period and asset type. Short Term Capital Gains (STCG) When you hold an asset for 36 months or less, it is a short-term capital asset. From 2017-18 onwards, the holding period for an immovable property like land, house, and building has been reduced to 24 months to be classified as STCG. Long Term Capital Gains (LTCG) When you hold an asset for more than 36 months, it is a long-term capital asset. From 2017-18 onwards, immovable property held for more than 24 months falls under the category of long-term capital asset and will attract LTCG tax if sold after 24 months. Some assets qualify as long-term capital assets if you hold them for more than 12 months; these are: Preference and equity shares of a company listed on recognized stock exchanges in India Securities like bonds, debentures, and government securities listed on a recognized stock exchange in India Units of UTI Units of equity funds Zero coupon bonds Before 2018, long-term capital gains on the sale of equity shares were tax-free in the hands of the investor. Post the Union Budget 2018, the LTCG tax-free limit for equity shares is one lakh in a financial year. If your capital gain is more than Rs one lakh in 2022-23, you would have to pay tax on it. The LTCG tax rate is 10% without the benefit of indexation. Tips to save LTCG tax in 2020-23 Here are a few ways to save long-term capital gains tax in 2020-23. 1. Tax harvesting Tax harvesting is a strategy you can use throughout the year in a planned manner to save tax on your capital gains. You can avail of this exemption on the total long-term gains you make from stocks and equity-oriented funds. To use tax-loss harvesting for saving tax: Sell the stock whose price has been falling consistently. You sell the equity if it has lost a significant part of its value and you do not see any chance of revival. You offset the loss incurred against the capital gains in your portfolio over the period. You can book long-term gains in equities up to Rs 1 lakh and reinvest them. The price at which you reinvest is the new acquisition cost. You can repeat this process each year and save LTCG tax of Rs 10000 yearly. 2. Section 54 Provisions under section 54 can help you save LTCG tax. If you sell a house and buy another one, you can get relief as per Section 54. To benefit from this section, you have to fulfil the following conditions: The benefit is available only to individuals and HUFs. You should buy another residential property within two years after the sale or one year before the sale of the existing property. If you want to construct a home, you should finish it within three years from the date of transfer. 3. Section 54F You can get an exemption on capital gains on the sale of assets other than a house under this section. You do not have to pay LTCG tax if you Use the entire sale proceeds to buy a house property subject to conditions same as Section 54. The new house is in India. At the time of transfer, you should own only one residential home apart from the new one. You cannot purchase or construct a residential house (other than the new one) within two years of that date. 3. Section 54EC As per Section 54EC, profits from the sale of a long-term capital asset, both immovable property and shares and stocks, are exempt from LTCG tax if invested in “long-term specified assets”. The conditions to avail of this exemption are: You should invest the gains within six months of the sale. The investment should be in government-notified bonds from the Rural Electrification Corporation (REC), National Highways Authority of India (NHAI) You cannot invest more than Rs 50 lakhs in these bonds. The lock-in period for the investment in bonds is 5 years. 4. Section 54B This section provides an exemption in case of capital gains from the transfer of agricultural land. You can save LTCG tax if: You use the proceeds to buy another agricultural land within two years of the transfer. You should not sell the land purchased for this purpose for at least three years from its purchase. 5. Capital Gain Account Scheme You can enjoy tax exemption through the capital gain account scheme without buying a residential property. Under this scheme, you can avail of the benefit if: You deposit the capital gains or the net consideration in the bank on or before the due date of filing returns. You can withdraw funds only to purchase a house or land and utilize the money within three years of withdrawal, or you will have to pay tax at the applicable LTCG tax rate. Things to remember You can use more than one section to claim a deduction. If you want, you can claim an exemption under both Section 54 and Section 54EC by combining the investment in new property and specific bonds. Similarly, you can claim simultaneous benefits under Sections 54 and 54F if all conditions are fulfilled. The LTCG tax-free limit is 1 lakh; the sale of assets above a lakh attracts capital gains tax. [B-02] Conclusion The amount of tax you pay depends on the value of the asset you sell and the LTCG tax rate. The above tips can help you reduce capital gains tax effectively. A penny saved is a penny earned, so utilize the above provisions to save tax.
08-11-2023
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Tax Savings

NSC Vs ELSS: Which One is Better For Tax-Saving Investments?

For a secure future, it is very important to plan your finances as soon as you start earning. It helps you choose the right investments based on your wealth creation goals. Under Section 80, numerous tax-planning funds help you save on taxes, but each comes with its risks and rewards. In this article, we will discuss how NSC and ELSS funds differ. This will serve as a full guide to help you evaluate NSC vs the best ELSS funds to find out which one helps you save the most tax. [B-01] What exactly is a National Savings Certificate (NSC)? NSC means “National Savings Certificate.” It is a way to save money at the post office, and the government backs the investments and their returns. The government started this programme to help people get into the habit of saving money and reach their long-term financial goals. The government sets the interest rate on this plan, but it can be changed every three months. The current rate of interest on NSC is 6.8%. You can invest as little as Rs. 100 in this; there is no upper limit. Also, the money invested in NSC cannot be taken out for five years. When the term is up, investors cannot stay invested; they have to get a new certificate at the prevailing interest rates. As per Section 80C of the Income Tax Act, 1961, an investor who invests in NSC can get a tax deduction of up to Rs. 1.5 lakh. Also, the NSC calculator can estimate the return on an NSC investment. The NSC calculator is free to use. What exactly is an Equity Linked Savings Scheme (ELSS)? Equity-Linked Savings Scheme is a type of mutual fund that can be invested in stocks and stock-related instruments in various industries and markets. The money made from this plan is directly tied to the share market. In recent years, the best ELSS funds have become very attractive to investors because, compared to other tax-saving methods, they have the potential to bring in higher returns. This is a good investment for people who want to save money for the long term. Most ELSS funds have a three-year lock-in period for investments. Also, investors can have tax breaks of at least Rs. 1.5 lakh every financial year under Section 80C of the Income Tax Act, 1961. Features of NSC Investment Term & Lock-in Period NSCs have a five-year maturity and lock-in period. Early withdrawals are allowed for only certain situations. Tax Benefits Under Section 80C of the Income Tax Act of 1961, an investor who invests in NSC can get a tax deduction of up to Rs 1.5 lakh per year. Risk Since the Indian government supports NSC, it carries very few or almost no risks. Features of The Best ELSS Funds Long-term investments The lock-in period for most ELSS funds is three years. This means that you must stay in the plan for a minimum of three years before leaving it. After three years, you can choose to exit the scheme or stay in it. To ensure good returns, it’s best to keep your money in the best ELSS funds. Tax Benefits As per section 80C of the Tax Act of 1961, if you invest in the best ELSS funds, you can get a tax deduction of Rs1.5 Lakhs per year. Also, there is no upper limit to the amount you can invest in a year. Long-Term Capital Gains (LTCG) Tax is applied to the returns because the best ELSS fund investments are generally held for longer than a year. This applies to returns taxed at 10% and exceeding Rs 1 lakh in a fiscal year. Risks Due to investments in the equity markets, the best ELSS funds typically have medium to high risk levels (depending on the investment option). Due to their exposure to the equity market, ELSS investments run the risk of Net Asset Value (NAV) instability or volatility. Therefore, you must invest in ELSS funds only if your risk appetite is high. Contrast Between ELSS and NSC There are numerous differences between NSC and ELSS. Here are a few: Nature Equity-Linked Savings Schemes are mutual fund plans that invest in equity funds to give investors returns and tax exemptions under Section 80C. National Savings Certificates (NSCs) are small savings plans given by the post office that offers guaranteed and risk-free investment returns. Lock-in Period The lock-in period for ELSS is three years, making it a short-duration tax-saving investment; in fact, one of the shortest. The lock-in period for an NSC is five years. Taxation By investing in ELSS, you can get tax benefits for Rs. 1.5 lakhs per year. For investments held for more than a year, returns over Rs. 1 lakh are levied at 10% as Long Term Capital Gains (LTCG) Tax. With NSC, you can also get a tax benefit of Rs. 1.5 Lakh per year through Section 80C. But the interest income on investments is taxed based on your tax bracket. Risks associated Due to their investments in the stock market, ELSS funds have medium to high risks. NSC is a government-supported program. and is pretty much risk-free, suitable for risk-averse investors. Returns Long-term investments in ELSS funds yield returns of between 12 to15%. On the other hand, NSC offers an interest rate of 6.8% compounded annually. [B-02] Conclusion Both of these investments are great ways to save on taxes. The way these investments compare in terms of risk and return is very different, catering to different types of investors. Those willing to take on more risk should consider the best ELSS funds to save on taxes because they can provide higher returns. On the other hand, if you don’t like taking risks, you can opt to invest in the NSC for stable and assured returns. For more information, you can visit the Piramal Finance website and explore their products and services.
08-11-2023
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Home Loan

Home credit loan application: Everything you should know before applying

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

How National Savings Certificates can Help in Tax Benefits & Eligibility

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

How a Loan Against Property is Beneficial for Small Businesses

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