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How To?

How to Check the Performance of your Mutual Fund Investments?

Mutual funds are a new investment method. They give better returns than other investments. A mutual fund is a type of investment that converts the money of many investors to buy stocks, bonds, government securities, gold, and other goods. These investments aim to get more money back than what was put in. Asset Management Companies or Fund Houses oversee putting together money put in by individual investors. They promote mutual funds and manage investments. They make it easy for investors to do business with each other. When examining mutual fund performance, you should look at more than just how it did in the past. The past mutual fund performance might not tell you exactly how it will do in the future. But it might help you find the right group of companies trading within the market now. [B-01] Why is it vital to observe mutual fund investments often? When buying shares in a mutual fund, you often hear the phrase “subject to market risk.” It is because mutual funds invest in a wide range of markets. So you should analyze the best-performing mutual funds before putting money into them. Regular review of your investment plan is very vital. It could help you allocate your assets more evenly. How to check mutual fund performance? When determining the performance of a fund, it can be helpful to review its fact sheet for additional information. In the financial report, you can see an overview of the progress of all the plans offered by your financial institution. This also includes your investments. The following is a step-by-step procedure to check mutual fund performance. Step 1: Decide what to do with your invested money. Step 2: Research the past performance statistics of the mutual funds. Step 3: check how the fund’s fees are set up. Step 4: Do the calculations to get the risk-adjusted returns. Step 5: Check the results and performance with indexes like BSE and Nifty. The best-performing mutual funds in India Putting money into mutual funds could be one of the best ways to build wealth over the long term. Choose the type of mutual fund and the way to invest. These will help you meet most of your financial needs. Factors influencing mutual fund performance Before deciding the best-performing mutual funds to include in your investment plan, check the following factors: Purpose When you put money into a mutual fund, keeping your goals in mind is vital. A goal may have a short time frame, like going on vacation to a different country, investing in a house, or buying things for the house. It could also be a long-term goal, like saving money for retirement or saving for education. Risk The risk comes from the fact that you don’t know everything about what you’re getting into. It is well known that mutual funds are conditional to market risks. Before deciding on a particular mutual fund, an investor needs to think carefully about how much risk the investment involves. Return on assets If you are an investor, you should always think about when you want to buy your next thing. If you need the money quickly, you should put it in liquid funds instead of equity funds. Methods for investments The way that fund companies decide how to spend their money is an investment strategy. During the liquidation process, you will have to sell your assets for less than what you paid. Performance of funds Measuring a fund’s performance ensures that its investments have held up through different market cycles. Because of this, it would be able to give a steady return on investment over time. Costs comparison The expense ratio is a term for the fee or commission that investors must pay for their investments to be taken care of correctly. To invest, you should look for mutual funds with the lowest fees. Taxes According to the Income Tax Act, you must file and pay taxes on any profits or returns you get from your investments. Direct plan or regular plan A person who wants to buy shares in a mutual fund can either buy shares directly or buy shares through a regular plan. Investors can buy the net asset value units directly from a fund house when doing direct transactions. In the case of a regular plan, you can only buy the units with the help of a commissioner or broker. Most of the time, direct mutual fund returns are higher than indirect ones. This is because they don’t include commission costs. How to understand mutual fund performance? A plan’s net asset value (NAV) shows mutual fund performance. The NAV is reported once a week for closed-ended plans and once a business day for open-ended plans. You can buy or sell open-ended funds at any time. On the other hand, you can only buy closed-ended funds when they first come out. You can sell them when the investment period is over. All mutual funds post their Net Asset Values on their official websites. As part of their regulatory responsibilities, there should be a report on mutual fund performance every six months. These results must include the fund’s returns and yields over time, ever since the scheme started. Because of how these things affect the yield, investors can also look at other details, like how much of the total assets go to expenses. Many newspapers and digital publications, offline and online, regularly report on best-performing mutual funds. Investors need to read these reports and stay up-to-date on mutual fund performance. An investor can figure out what mutual fund performance is doing by looking at how other mutual funds in the same category are doing. You can also use several benchmarks, like the BSE Sensitive Index and the S&P CNX Nifty, to compare the performance of equity-oriented schemes. When deciding when and how much to invest in mutual fund schemes, investors need to conduct the required research before going forward. [B-02] Conclusion Knowing mutual fund performance when trading on the stock market or making investments is essential. Put your money in mutual funds that meet your needs. After you’ve invested, keeping a close eye on how it’s doing on the market is vital. Regarding trading and investments, using mutual fund analysis to track where you stand in investing and the stock market can help you make better, more educated decisions. Check Piramal Finance to learn more about mutual funds.
08-11-2023
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Personal Loan

Know how to Repay Education Loan Online in India

Education is one of the basic pillars of one’s life. One’s education defines their future. It holds great importance in whether a person will lead a happy life. That is the reason why parents in India invest greatly in their children’s education. Great importance is given to education even if the family does not have much money to spend. To educate their child, many families or individuals use education loans to cross the financial barrier. Once the course is completed and the student finds a proper job, he/she can then repay the loan to the bank or lender. [B-01] What is an Education loan? An education loan is a sum of money borrowed to finance education at the undergraduate level. These loans can cover tuition fees, living expenses, books and other educational needs when a student is pursuing a degree. The education loan is deferred while the student is pursuing their degree in college. In most cases, there is a ‘grace period’ of over 6 months after the degree ends. This ensures the student has enough time to get a job and then start paying back the education loan amount with their salary. How do education loans work? Students can avail of education loans from banks by filling out a free application form. This form requires them to fill out details such as name, address, bank details, etc, and submit it to the bank. In India, banks give loans up to INR 4 lakhs without collateral. Beyond that, they would ask for one. Collateral in the form of land papers, house papers, etc. can be submitted to the bank to get a bigger loan amount. Education loan interest rates in India hover around 6.75% to 12.9%. The State Bank of India, for example, has an education loan interest rate of 6.85%. Types of Education Loans in India In India, student education loans are classified into three categories based on the location of education, course and collateral included. 1. Location-Based Loans Domestic Study Loans As the name suggests, this loan type is for students studying in India. The university must also be recognised by the lender to take an education loan from them. Study Abroad Loans These loans are created to help students bring their dreams of studying abroad to fruition. Similar to domestic loans, the foreign institution must also be recognised by the bank to get the loan. 2. Course-Based Loans Indian banks also provide education loans based on the course. These are the most popular ones. Bachelor’s Degree The most common educational degree in India is a Bachelor’s degree, e.g. BTech or MBBS. This course is done after one’s higher secondary education. This is why a vast number of Indian students take an education loan for financing their Bachelor’s degree. Higher Education Many students also do higher studies after their Bachelor’s degree. This is done mostly to broaden their horizons and qualify for advanced roles with better pay packages. Hence, an education loan for higher studies is also quite popular. Professional Education Some may also wish to pursue courses like PhDs or Executive MBAs to take their professional career to greater heights. Hence, education loans are vital here as well. 3. Collateral-Based loans Secured Loans Education loans which are for higher amounts require collateral to be submitted to the bank. Students can pledge assets like houses, land, and other similar valuable things to obtain an education loan. Unsecured Loan Many Indian financial institutions also offer unsecured loans if the student doesn’t provide collateral. How to repay educational loan online in India Most banks usually provide a minimum of 6 months as the grace period after the completion of the education loan so that the degree holder has enough time to get a job and start repaying the loan. Upon the completion of the ‘grace period’, the education loan has to be repaid to the bank. Although the steps of repaying an education loan online would be slightly different for each bank, the basic principle remains the same. Let’s look at how one can repay their education loan online in India. Select the BankThe process of repaying the loan online includes choosing the bank that one has taken it from. For this, they must go to the official website of that bank and go to the loan section. Provide the Loan DetailsIn the next step, provide all the details of the education loan such as loan number, phone number, and bank account number. After providing the details, one will be asked to provide the required amount against the ‘Amount payable’ on the website. They must fill in the amount of money they want to repay and click on ‘Pay now’. Confirm PaymentUpon filling in the details, they will need to enter their internet banking authentication details to start the payment process. They must then choose the amount they would like to pay against their education loan repayment. After clicking ‘Pay now’, the money will be debited from their chosen bank account instantly. Receive Online ConfirmationThe payment confirmation will be sent through SMS and email. The same process can be repeated multiple times whenever one wants to make the payment against their education loan. [B-02] Tips on how to manage student loan debt. Plan a monthly budget and follow it ardently. To reduce the principal amount faster and pay less in interest, foreclose the education loan if possible. This will minimize the loan duration and the interest accrued. One must plan and understand monthly cash flow and make necessary changes to their budget to repay the education loan on time.
08-11-2023
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Tax

All you need to know about what is and how to pay service tax in India

Service tax in India was introduced in 1994. The tax for the first time was levied on telephone services and services relating to insurance, other than life insurance. It was also levied on the services provided by Stock Brokers because service constitutes a significant part of the country’s GDP. The number of services brought under service tax has increased over the years. As of 2011, 119 services are taxable in India. The initial rate of service tax was 5% of the gross value of the service. This was increased to 8% by the 2003 financial budget. In 2004, it was increased to 10% and at present service, tax is 12% with an additional 2% cess on education. Section 66 of the Finance Act of 1994 details the authority that can charge service tax in India. [B-01] Who pays service tax? It is usually the service provider who has to pay service tax. On the other hand, the government can also direct a person, other than the service provider, to pay for it. The service receiver is asked to pay service tax in situations like simplifying the administrative process, or escalation of the cost of collection. If you are an insurance agent selling insurance policies, you are not levied the tax. Instead, the insurance company incurs the service tax. If you buy a service from a service provider located abroad, the service tax is to be paid by you not the seller based outside India. If you are a consignor or consignee of goods carried by the Goods Transport Agencies, you are liable to pay service tax under a special category mentioned under notification No. 24/2005-ST dated 7.06.2005. How much is the service tax? Service tax was summed at 15% in June 2016 under Section 66 of the Service Tax Act. There was also an additional 0.5% Krishi Kalyan cess and a 0.5% Swach Bharat cess. The calculation is done on the charges that you paid or received for a service you bought or used. While most of the services on the list are taxed following the same rule, there are also some exceptions. In the case of air transportation, there is an exemption of 60% on air transportation. There is a 70% exemption on some services offered by tour operators. There is a 30% exemption on chit funds. There are many more under the exemption list. Service tax is charged on the percentage amount left after exemption. How to pay service tax in India? The first step to pay service tax in India is that you submit an application to the Superintendent of Central Excise in Form ST-1 and register yourself. You must apply within a time of 30 days from the date from which the service tax is levied. You can also register within 30 days of the commencement of your business. You can consider whichever of these two conditions is later to apply for registration to pay service tax. The good news is that you don’t have to pay any registration fee. In case you are applying for more than one taxable service, you can do that in a single form. Do enclose a copy of your PAN card, address proof, partnership deed, company constitution, etc. along with your application form. Usually, you get the registration certificate within seven days of filing your application. If the business has been sold or acquired by another party, they need a fresh registration. If you are a registered assessee and start a new service for the premises of the old one, you need not apply for re-registration. You can fill out Form S.T.1 and submit it to the jurisdictional Superintendent for making amendments to the existing information. Self-assessment and payment You can do a self-assessment of your taxes and file tax returns with the jurisdictional Superintendent of Central Excise as per rules mentioned in Section 70, Finance Act, 1994. Many think that service tax is paid on the amount billed to a customer of a taxable service. That is not right. You need to pay service tax for the value of the taxable service that you provided during a stipulated period. In the case of corporates, service tax must be paid for a calendar month. The service tax must be paid on or by the 5th of the next month. For non-corporate services, tax is payable every quarter. Service tax must be paid on the 5th of the month following the quarter. For each financial year, a non-corporate taxpayer will pay service tax in all four quarters of the year. Service tax is paid through the TR6 challan in the designated banks. You can also pay service tax via a cheque. There is also an interest and penalty levied in the case of delay or failure to pay service tax on time. Can service tax be paid online? You can also file your service tax online. For online tax payment, you must first register yourself in the CBIC-GST portal. To pay service tax online, you will also need to enter the 15-digit code allotted by the jurisdictional Commissionerate. Once the code validity is established, all your details like name and address will be displayed on the page. You can now begin the process of online tax payment. From the ‘Services’ menu on the website, you can start the process of online payment of service tax. You can then fill in the necessary details and generate the Challan which remains valid for 15 days. To make the online tax payment, you will be redirected to the ICEGATE portal. The ICEGATE portal will display your unpaid challan. Select the challan for online tax payment. You can make a digital transaction and pay service tax online. You can also take a printout of the challan and make the payment at the nearest bank branch. [B-02] While making an online tax payment, always wait for the confirmation message displayed on the portal. This means that your online service tax payment was successful. The words tax or service tax baffles many people. You just need the right information to do away with myths and become a pro at filling your tax returns including online tax payment. You can read and learn all your need to know about service tax and its payment procedures from many reliable online sources like the Piramal Finance website.
08-11-2023
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Business Loan

Important Factors You Shouldn’t Miss While Applying for Business Loan in India

Gone are the days when applying for a business loan looked like a tough nut to crack. Due to the digital age and the government’s offers for “ease of doing business,” getting a business loan has become much easier. The write-up will guide you smoothly through the process. It will let you know about all the necessary factors. It would be best if you didn’t miss these while applying for a business loan in India. To turn your business idea into reality, you require funds. So, you are thinking of applying for a small business loan. You are puzzled by the numerous loan options as you search the internet. You must undergo a lot of paperwork and procedures while applying for business loans. You don’t need to worry anymore. Let us understand the important factors you shouldn’t miss while applying for business loans. [B-01] Which Loan Do You Require? This is the basic question to ask while applying for a business loan. Two business loan categories are working capital loans (cash credit and overdraft facilities) and term loans. Working Capital Loan This loan is for the operational activities of a business, like the purchase of raw materials, expenses for sales and marketing, product development costs, payment of salaries and wages, etc. These loans are generally available against collateral such as hypothecation of stocks, fixed deposits, immovable property, etc. Term Loan As the name suggests, these loans are repayable within a stipulated term or period. For example, if your business requires capital investments in the form of plant and machinery, equipment, vehicles, or the construction of a factory shed or office. In this case, the lender provides term loans to finance these capital costs. Hybrid Loan This is a mix of the above two loans. Depending on your business, you will need to figure out the type of loan that will serve you the best. For example, if you are a manufacturer, you may need to set up factory sheds and buy capital machines and equipment. Hence, you may opt for a term loan or a hybrid loan. You may not require capital machines if you are in the service sector. Hence, operational costs are the main factor. Then, the working-capital loan would be the best option. Decide the Loan Amount Check the loan amount you’ll need before applying for a business loan. It should not lead to a shortage or excess of cash. There’s an easy way to evaluate this. Create a complete budgeting statement. It should include your business’s anticipated annual running costs, capital expenditures, and any surplus cash you may have. This will give you a good idea about the fund, working capital, or capital cost needs. Moreover, it will help ensure that you are on the right path. Know Your Lender Different lenders offer different features. While applying for a small business loan or a larger one, it is better to be aware of the numerous terms and conditions. This will help you get the best deal. Here are some factors one should keep in mind: Interest rates play a significant role when choosing a business loan. Low-interest rates ensure lower EMIs, reducing the loan’s total cost. The interest rate also depends on the duration of the loan and the principal amount. Thus, these factors, too, have to be checked. Despite the low interest rate, the lenders may levy unreasonable processing fees and other hidden charges, thereby increasing the cost of borrowing. So, you’ll need to read the agreement cautiously to determine such surprising costs. Flexible Repayment Conditions: To maintain your creditworthiness, it is essential to repay the loan EMIs on time. Hence, choosing a lender that offers easy repayment options is vital. Application Process: Who doesn’t like a hassle-free loan? Online lenders often have a simpler application process as compared to traditional ones. They have the benefits of minimal paperwork, faster loan sanctions, etc. Piramal Finance has a simple application process that allows you to choose a business loan easily. Ensure a Good Credit Score A credit score is an assessment of the loan and interest repayment history of an individual. It is used to ascertain the creditworthiness of a person or business. If you borrowed loans from multiple institutions (personal or housing), the lenders would examine how well you had repaid them. The lenders generally rely on a CIBIL report (also known as a Credit Information Report) to determine your credit score. The score ranges from 300 to 900 points. A score above 700 is usually deemed good. Always ensure that your credit history is good before applying for a business loan. Other Factors There are several aspects a lender will examine before granting a business loan. It is vital to have some documents and information ready before applying for a business loan: Tax Returns Generally, the lenders will ask for the latest 3-year income-tax returns and the current GST returns. This helps them determine the financial performance and status of your existing business. The lenders examine the annual sales, the position of receivables and creditors, inventory valuations, etc. Hence, make sure these figures are correctly reflected in your financial statements. Project Report A project report is a blueprint for your business idea. The report will contain the exact nature of your business idea. Also, the marketability of your products or services and financial forecasts for the next 3 to 5 years The lenders will study the project report to determine the viability of your business. Hence, make sure the project report is realistic and detailed. Other documents to be submitted include a PAN card, address proof, business proof or trade license, rent or lease agreement, etc. [B-02] Summing up The demand for business loans is rising as start-ups and entrepreneurs increase. Hence, the above factors must be studied carefully while applying for a business loan. This will help you to get an ideal loan suited for your business. Several loans are available without any collateral or security. Piramal Finance offers non-collateral business loans ranging from Rs 3 lakh to Rs 10 lakh.
08-11-2023
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Home Loan

Complete guide on house loan emi calculator for beginners

A home loan is a substantial loan. It frequently lasts more than twenty years and keeps the borrower in debt until the principal loan amount and interest are fully paid off. Since it is among the most significant loans ever taken, one must assess their finances and affordability before applying for a home loan. To help you understand the nature of EMIs, you can use a free online tool known as the house loan EMI calculator. You can use the calculator as many as you like for no cost on most loan sites. Let’s look at what an EMI calculator for a home loan is, how to use one, and the many benefits of doing so before applying for a loan. [B-01] Factors Determining Your Home Loan EMI Here are some of the factors that determine your home loan EMI: Principal Loan Amount: The principal is the money you borrow. If you want to buy a home for 50 lakhs, enter your down payment and the borrowed amount. If you are able to repay a 25% down payment on a 50 lakh house, the principal loan amount would be 37.5 lakhs. Interest Rate: You have to pay interest on the home loan amount given to you. Each lender has a different minimum interest rate, which you can find on the website of the lender you’re interested in. When calculating home loan EMI, you must at least take into account the interest rate offered by the lender you select and plug in the numbers accordingly. Tenure: You must also put in the number of months for the loan. Since home loans are for large amounts of money, you can get them for anywhere from 15 to 20 years. But keep in mind that a long-term loan long term will have high-interest rates. House Loan EMI Calculator House loan EMI Calculator helps you figure out home loan payments or EMI. It’s an easy-to-use calculator that you can use to plan how much money is needed to buy a house. Equated Monthly Instalment is what EMI stands for. Repaying your mortgage entails both the principal and interest accrued up to the current balance. The monthly instalment might be reduced by taking out a loan for a longer period (up to 30 years). How To Calculate EMI On Home Loan The EMI formula is a method of calculating the monthly loan instalments for a home loan. It is calculated by multiplying the principal value, rate of interest, and the number of EMIs. The formula for EMI calculation is P x R x (1+R)^N / [(1+R)^N-1] whereP stands for the principal loan value, N stands for Loan tenure in months and R stands for monthly interest rate Your loan’s interest rate (R) is calculated monthly. Rate of interest (R) = Annual Interest Rate/12/100 If R is 6.2% p.a. then R = 6.2/12/100 = 0.005 Manually calculating the EMI using the formula can be time-consuming. A house loan EMI calculator can help you easily calculate your loan EMI. How Can A House Loan EMI Calculator Aid In The Planning Of A Home Purchase? The house loan EMI calculator provides a clear picture of the money that must be repaid towards the EMIs. It aids in making an informed decision about the monthly outflow toward the home loan. This aids in evaluating the loan amount available as well as calculating the personal contribution requirements and property cost. As a result, knowing your EMI is essential for calculating house loan eligibility and better planning your home-buying journey. Advantages Of A House Loan EMI Calculator There are numerous benefits to using the house loan EMI calculator tool: Simple Process: Only the home loan amount, interest, processing fee (if applicable), and duration should be entered. There are no hard calculations or challenging math. The house loan EMI calculator will calculate the rest. Obtain A Breakdown Of The Finance Charges: The EMI calculator helps you understand the financial expenses connected with your EMI, such as total interest payable and processing fee amount. Since they are shown as a percentage of the total loan amount by banks and financial institutions, knowing the actual value might help you comprehend the exact loan value. Choosing An Appropriate Tenure: Computing EMIs using a home loan calculator can help you determine the correct loan tenure. If you can pay a larger EMI, you can prefer a short loan term and pay off the loan as soon as possible. Otherwise, you can pay a lower EMI and extend the duration of home loans. Aids In The Validation Of Information: When discussing a home loan with your bank, you can confirm its repayment duration. The repayment table information provided by the home loan calculator might be helpful. Keep in mind that the figures can occasionally differ. This is because lenders may incorporate additional fees in their EMI calculation. Aids In Loan Management: When you have excess money beyond your EMI payment, you can use it to repay the loan principal. Use the house loan EMI calculator to review your finances and determine if and how making prepayments can impact your ability to repay the loan in full before the end of the term. Home Loan EMIs: Tax Benefits Taking out a home loan can be costly, but it has certain advantages, particularly when it comes to taxes. The government provides tax breaks on EMIs paid each year through the Income Tax Act of 1961. These are the following: Section 80C: Every year, you can claim a tax deduction of up to Rs 1.5 lakh on the principal value paid towards your property loan. Section 24: You can claim a deduction of up to Rs 2 lakh on the interest component you pay each year under this clause. Section 80EE: This section allows you to claim up to Rs. 50,000 in additional interest per year. This is in addition to the sums specified in Sections 80C and 24. Certain limits and conditions apply to this deduction. [B-02] Summing Up With a house loan EMI calculator, you can easily calculate the amount you need to repay for a home loan every month. It is a simple and free process that only takes a few minutes. To read more finance-related articles, check out the Piramal Finance website right away.
08-11-2023
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How To?

How to Start Commodity Trading? Guide for Beginners

Investing is probably one of the best ways to strengthen your financial side. It gives you financial leverage, monetary liberty, and security. Besides investing, multiple disciplines have emerged in which people are looking to improve their financial standpoint. And one of them is trading assets, shares, commodities, etc. Trading is a great way to earn a lump sum of money within a short span of time, provided that you are well aware of the risks involved in the act. According to a report, several millionaires have emerged lately because of skillful trading. Out of various types of trading, commodity trading is a kind of trading where you buy and sell commodities instead of shares and stocks. Commodities are the standard raw materials for manufacturing goods. So, besides being used as raw materials, they can be used as an excellent mode of exchange and trading. But, as delightful as it might seem, it is equally important to be well aware of the risks involved in trading. [B-01] Do you want to start online commodity trading without being aware of the benefits and downsides? This article sheds light on commodity trading, its benefits and downsides, and the things that you should be aware of before getting into it. What is commodity trading and how are they used as a mode of exchange? Commodity trading, as can be guessed from the name itself, is a type of trading where commodities are used as a means of exchange. There are basically two types of commodities– hard commodities and soft commodities. Hard commodities are the ones that are extracted from the ground within the mining and mineral industries. Soft commodities are cultivated, like livestock, grains, etc. Similar to any other market, a commodity market is a physical or virtual place where different parties trade and exchange commodities, where the price is determined through the supply and demand chain. Commodities, in a commodity market, are traded both on the spot market and the exchange market. According to the report from NCDEX, the National Commodity Derivatives Exchange, in India, fibres, sugar, cereals, pulses, spices, oils, and oil seeds are mostly used for trading. Besides that, some precious metals like gold and silver have also been used for commodity trading. These metals are also used as credible investment options in India in the form of ETFs, SGBs, etc. Now that you know the meaning and significance of commodity trading in India, it is time for you to learn about the benefits of online commodity trading. What are some of the exclusive benefits of commodity trading? There are several benefits to trading commodities, and some of them are listed below. Immunity to inflation and market crashes: During a period of rising inflation, the process of borrowing becomes very expensive. During this period of high inflation, stocks fall and businesses struggle to make a profit. However, on the contrary, the cost of goods during this period increases with the increase in raw materials. This makes the prices of commodities rise even higher, and therefore, commodity trading becomes profitable. Diversification of portfolio: Since there are a variety of commodities in which an investor can invest, commodity trading gives you the scope to diversify your portfolio. One of the benchmark benefits that investors seek is portfolio diversification. High leverage: Commodity trading also gives you the benefit of high leverage. You only have to pay about 5 to 10 percent of the margin and still be able to have a good foothold in the market. So, you can still score a good profit if anything like an insignificant price increase occurs. High transparency: Because of the modern rules of the market, online commodity trading is highly transparent. There are no risks of manipulation involved in the trading process, leading to fair price discovery. What are the downsides of commodity trading in India in 2022? There are some downsides to commodity trading as well. They are: Volatility: All the high returns you avail yourself of from commodity trading are due to the high volatility of the prices of different commodities. So, even if the prices change, the supply and demand chain is unaffected, and this has the potential to alter the future of commodities. Short-term goals: Most of the time, the commodity market trades in the form of contracts. This trading is always carried out for a shorter duration, unlike with stocks, where you can pull the trigger for a longer duration. So, as a short-term trading option, commodity trading is an exceptional option, but it is not idle for accomplishing long-term goals. No sharing of ownership: In stock market investment, you buy shares from companies, and as a result, you share ownership as well. This gives you the power to influence the decisions of the company. However, you don’t have the scope of sharing ownership in commodity trading because you buy individual commodities. Low liquidity: Commodities have lower liquidity than equities because equities can be easily traded at any given price. This helps you manage enough funds in case of a financial crunch or an emergency. But, in the case of commodity trading, this is not quite possible, and sometimes you have to settle for a low price. [B-02] Wrapping it up You should be well aware of all the benefits and drawbacks of any mode of trading or investment. You should have a certain level of experience before you commit to the process of regular trading. As for commodity trading, you should know about the benefits like portfolio diversification, leverage, and transparency. You should also acknowledge the downsides, like volatility, low liquidity, etc. You should do ample research and seek guidance from different investors and traders before getting into online commodity trading. If you want to know more about trading and investment, you can refer to Piramal Finance.
08-11-2023
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Personal Loan

Personal Loans for Salary Less than Rs 20000 – Check Eligibility

The flexibility of a personal loan makes it a great tool for handling life’s challenges. This is an unsecured loan. Hence, you’ll need to show the lender that you’re a good risk and have a history of making timely payments. That’s why your wage and other revenue sources are so important. Read on to find out how to get personal loans for salaried with a salary of 20,000. [B-01] Personal Loan for Salaried With a Salary Under 20,000 Nowadays, getting a personal loan with a salary of Rs 20,000 is a simple and fast process. Personal loans for salaried are widely available. Hence, you won’t have to drain your savings or borrow money from loved ones to cover an unexpected expense. You may be curious about how much you get from your Rs 20,000 income. With an income of Rs 20,000, you have access to a maximum of Rs 3 lakhs in personal loans. Your ability to get a personal loan may also play a role. What Is the Eligible Loan Amount for a Salary of Less than Rs 20,000? Can a huge loan be obtained with a small income? You can borrow up to 12 times your annual income from a reputable lender. But, this choice will be affected by several factors. You can only apply for an instant loan if you meet all the requirements for a personal loan. These include having a solid income and no existing loans or defaults. Personal loans for salaried are available from 30,000 to 10,00,000 rupees. A low-salary personal loan is available to those who satisfy all the criteria put forth by the lender. How to Calculate the EMI of Personal Loans for Salaried? The process of calculating the monthly payment on personal loans for salaried people is pretty straightforward. Just enter the desired loan amount, repayment period, and interest rate. Instant loans for the salaried make it easy to receive the money you need. Use the following formula to do the calculation by hand: EMI= P x R x [(1+R)^N]/ [(1+R)^N-1] Where, P=Principal amount R=Rate of interest N= Tenure of the loan Personal loan EMI calculators make calculating your monthly payment easy. Eligibility Criteria To Avail Personal Loans for Salaried With a Less than Rs. 20,000 Salary Suppose you want to qualify for a low-income personal loan from your lender. In that case, your income must fall within their range. A few examples are as follows: Citizenship You must be a citizen of India to apply for and receive personal loans for salaried. The personal loan market in India is closed to anyone who is not a citizen of India. Age To apply, your age must fall between 21 and 45. Employment A full-time job in a public or private institution is mandatory for a low-salary loan. Also, people working under the following can apply: Government Institution Private sector Public sector MNCs or related companies Partnership Firms Proprietorship concern Tenure Maintaining a position for more than three months is preferred. Work experience You must have job experience equaling at least 6 months. Income Personal loans for salaried require a monthly income of 20,000. What Are the Documents Required to Get Personal Loans for Salaried? Personal loans for salaried require the applicant to provide the following information and paperwork: PAN Card Identity Proof (any one of the following) Passport Driving License Aadhaar Voter’s Identity Card Address Proof (any one of the following) Registered Leave and Lease Agreement Passport Driving License Aadhaar Card / Aadhar Acknowledgement Voter’s Identity Card Utility bills like Telephone Bill /Electricity Bill etc. (not more than 3 months old) Income Proof Latest 3 month’s salary slips Bank statements from the previous three months Co-applicant If clubbing of income is required for higher loan eligibility, co-applicant is mandatory. Only the Spouse can become co-applicant The co-applicants above documents will also be required at the time of loan application. Personal Loans for Salaried With a Salary Less Than Rs. 20,000 – Features and Benefits No Collaterals Due to this characteristic, obtaining a personal loan is very simple. Flexible Terms Instalment payments over a longer period can be more financially manageable. Pre-Approved Loans The interest rates on pre-approved loans are often lower. Minimal Documentation Suppose you have a salary of Less than Rs 20,000. In that case, you can apply for a personal loan by filling out a standard loan application. And by attaching digital copies of your ID proof, billing address, and pay stubs. Quick Approval and Disbursal When cash is needed quickly, this quick procedure might be a big help. What Are the Interest Rates Offered by Personal Loans for Salaried Providers? Interest rates on personal loans for salaried depend on various factors, but credit score is vital. The lender will impose processing fees if you pay off a loan early. He will impose this besides the interest and foreclosure costs. Here is a rundown of the fees and rates associated with a personal loan in India. Interest Rate8.30% to 36.00%Processing FeeUp to 3% of the loan amountForeclosure Charges0% to 7%Loan TenureUp to 5 yearsLowest EMI (per lakh)Rs. 2275 How to Apply for a Personal Loan for Less than Rs 20,000 Salary? You can apply for a personal loan by going to your bank’s branch. Ensure that you visit the branch with the relevant documents. You can also apply for a personal loan online by using the internet banking platform of your bank. Or, you can use the mobile application offered by your bank. This will make the process much more convenient and avoid any unnecessary headaches. To finish applying for a loan, upload the photocopy of the necessary documents. [B-02] Conclusion Even if you have a salary below Rs 20,000, you can apply for a personal loan. This guide explained everything about a less than Rs 20,000 salary personal loan. Before asking for a loan of any kind, you must closely examine your needs and requirements. Learn the rules, and pay your bills on time, to keep your finances in good shape.
08-11-2023
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How To?

How to Choose the Best PPF Scheme?

There are two types of investors in this world: those who love to take risks and those who avoid them. Risk-taking investors have a wide variety of investment options open to them. However, investors who want to avoid taking risks often feel that they have limited investing options. If you want to invest without taking risks and are looking to explore your options, you’re at the right place! One of the options that provides inflation-beating returns is Public Provident Funds (PPF). Let’s understand what a Public Provident Fund (PPF) is and how you can choose the best PPF scheme. [B-01] What is a Public Provident Fund? Public Provident Funds (PPFs) are a popular long-term investment option in India that offer tax benefits and have the potential for moderate returns. It is a government-backed savings scheme that allows you to save money in the long term while also receiving the benefits of tax deductions. When you are considering investing in a PPF scheme, there are several factors that you need to consider before you decide what is best suited for your needs. Compare different options Before investing in a PPF scheme, it is important to compare different providers. You can invest in a PPF scheme through a bank or the Post Office. It is advisable to inquire and compare the details in order to determine the flexibility and service components offered by different banks. Being aware of interest rates for PPF The current interest rate on PPF schemes is 7.1% per year. This rate is determined by the government of India. The interest rate on PPF is fixed by the government for each quarter and is not linked to the market, which means that it is not affected by changes in the stock market. This makes PPF a relatively safe and stable investment option. Knowing your investment horizon PPF schemes have a term of 15 years, during which time you can keep adding money to your account. After the 15-year period ends, you can again extend the term by 5 years at a time, for as long as you desire. Keep in mind your long-term goals and choose a strategy that matches those. It is worth noting that you can withdraw a partial amount of money from your PPF account after 6 years, which would only be up to 50% of your balance amount. PPF schemes also allow you to close the fund, so you can withdraw the full amount and close the fund. However, it is allowed only for specific reasons, such as serious illness or higher education. Eligibility criteria to open a PPF account PPF schemes have certain eligibility criteria that must be met in order to open an account. PPF accounts can be opened only if you are a resident of India and have completed 18 years of age. Non-resident Indians (NRIs) are not eligible to open PPF accounts. Minors (individuals under the age of 18) can open PPF accounts, but they must be handled by their parents or legal guardians until the minor attains the age of 18 years. You can have only one PPF account in your name. It is important to ensure that you meet the eligibility requirements before applying for a PPF scheme. Flexibility of PPF schemes Some PPF schemes offer more flexibility in terms of the amount and frequency of contributions that you can make. The minimum contribution that you need to make to your PPF account is Rs. 500 per year while the maximum contribution is Rs. 1.5 lakhs per year. You can make contributions to your PPF account on a monthly, quarterly, or annual basis, depending on your preferences and financial situation. You can decide if you want to make a small contribution every month or if you want to make a large contribution every year. Credibility of the institution The PPF scheme is a government-backed savings scheme, which is why it is considered a safe investment option. Since the scheme is backed by the government, it is less risky than other investment options. While there is safety of capital in PPF, you should invest in banks that are credible. This helps you avoid hassles later on. Benefits of PPF schemes Now that you know how to choose the most appropriate PPF scheme, it is equally important that you understand the benefits of investing in PPF. Some of these benefits are: Inflation-beating return: The returns provided by the PPF beat inflation in the long run. While the inflation rate is around 6% per annum, the PPF interest rate is 7.1% per annum. It is important that you invest in avenues that beat the inflation rate. Assured returns: PPF is one of the safest investment options because it is backed by the government of India. If you prefer avoiding investment in risky avenues but still want to earn moderate-to-high returns, then PPF schemes are an ideal investment option for you. Tax benefits: Investments in PPF schemes are eligible for deduction under the Income Tax Act, 1961. Section 80C of the Act allows a deduction of up to Rs. 1.50 lakhs for each financial year. Furthermore, the interest earned on your PPF income is also exempt under the Act; it would, however, need to be reported in your tax returns. [B-02] In a nutshell As investors are moving toward safer investment options, PPF is becoming the preferred option among them. Very few investment options provide a combination of assured returns and low risk, and PPF is one of them. If you follow the above steps, then you can shortlist the best PPF scheme that aligns with your investment goals. For more such information, stay tuned with Piramal Housing Finance.
08-11-2023
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Health Insurance

What Does Health Insurance Not Cover?

Health insurance and other types of insurance are very important. They ensure you have enough money in case of a medical emergency. So it can help you pay less for your huge hospital bills. Several insurance companies add extra benefits to their health plans. But these benefits vary from one provider to the next. The main goal of health insurance is to help pay for urgent medical costs. So you can make sure your health and well-being are safe. But not all treatments are emergencies. So, it is very important to find out what medical bills or fees your policy does not cover. Read on to learn about the costs that are not covered by health insurance. [B-01] Medical Charges Excluded From Health Insurance Policies Here are some medical treatments that are excluded from health insurance policies: Dermat Bills Your health insurance protects you from risks to your health. It gives money to help people get the medical care and attention they need. But elective surgeries like liposuction and Botox are not emergencies. Now you might wonder, “What if you have an accident that changes your face?” Will your health insurance policy pay for it? Your insurance company may have different rules for these kinds of situations. Some insurance companies might offer special benefits in the event of an accident or when the weather is bad. But you need to talk to your health insurance company about that. Don’t assume that your health insurance will pay for treatments that make you look better. Make sure you’ve talked to the provider about it. So you don’t do anything wrong. Prexisting Health Conditions This part of health insurance policies can differ from one company to the next. Some insurance companies might not cover the diseases that are out there. Diabetes and high blood pressure are examples of diseases that people already have. Whether or not these diseases are covered by health insurance depends on the company. Some of them might have deals. So, they cover the disease that was already there, but only if you stay on their health insurance plan for 12 to 24 months. Maternity Bills Health insurance does not cover things like pregnancy and abortion. Some moms have easy pregnancies, while others have hard ones. In either case, health insurance policies do not cover maternity costs. But sometimes, being pregnant could put the mother’s life in danger. In these situations, insurers might help pay for an abortion. Don’t forget to tell the insurance company when you sign the health insurance policy. If the mother’s life is in danger, you must show proof. Ask the doctor to talk about it with the insurance company so that health insurance pays for the bills. In some cases, the mother is the one who wants the abortion, but it’s not covered by health insurance. Diagnostic Tests Health insurance does not cover the costs of diagnostic tests. A doctor might sometimes think that you have a disease. They will want to do scans and blood tests on you. Also, more medical tests may be done to get a full picture. The health insurance plan doesn’t pay for the costs of these tests. But in certain situations, your insurance company might cover these costs. Some health insurance plans cover the costs of diagnosis. Sometimes the insurance company can pay the bills if they are part of the treatment for an illness. Alternate Therapies Health insurance policies are liable to cover your urgent medical bills. But they might not bear the cost of all the therapies involved. Therapies like naturopathy, acupuncture, and pathology are sometimes required in the healing process. Yet these treatments are excluded from the health insurance policy. Do not rely solely on health insurance policies to cover all of your medical expenses. Contact your insurer and discuss all your doubts. Ask them about the treatment that will be covered to avoid any surprises. Mixed Charges Do you have a long-term illness or a sudden injury? Your health insurance will pay for those costs. But other fees are not covered. Hospitals also charge you service fees on top of your medical bills. Most health insurance plans, however, do not cover these costs. Even if you file a claim, the insurance company will not pay these bills. Disorders Caused by Alcohol Overdose Diseases caused by alcohol are not covered by health insurance. Health problems caused by drinking too much alcohol are not considered a crisis. A health insurance policy protects you from things like accidents and other diseases. A lot of the time, the patients are sick with things like liver failure. But the insurance company won’t have to pay the bills since your mistake hurts you. Health Fibers and Tonics When you sign a health insurance policy, read the terms thoroughly. Under all the clauses, you will find this one. Insurers do not cover charges for health add-ons. For example, supplements like protein shakes, tonics, and other vitamins are excluded. The health insurance policy includes only medicines prescribed by a doctor. In some cases, the prescription suggests a health supplement. Then your insurer has to compensate for that. Suicide The insurer will not cover any activity by the policyholder that is self-harming. If the policyholder attempts suicide or injures themselves, they will need urgent treatment. The medical bills resulting from their injuries are excluded from the terms of a health insurance policy. The suicide attempt might be fatal in some cases. Still, the insurer will not be liable for other bills. The victim’s medical bills are not covered by his or her health insurance policy. [B-02] Conclusion Now that you know what is not covered by health insurance, you can plan your budget better. It is crucial to know what your health insurance covers. It can keep you from using your savings to pay for medical bills. But you need to know what things aren’t covered by your health insurance. So it helps you avoid unexpected fees and save money for bills ahead of time. Always take the time to read your health insurance policy carefully. It will help you figure out the rules so that you can choose the option that best meets your needs. Still, you need to ask your insurance company for help. Check out the products and services related to health insurance policies at Piramal Finance today!
08-11-2023
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