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Home Loan

Know all types of charges & benefits on a home loan

The most common way to buy a home is by getting a home loan. Before getting a home loan, one needs to know a few basic things. What are the types of home loans, the benefits, the methods, and the charges on home loans? Know more about charges on home loans. With low interest rates, long loan terms, and higher borrowing limits, it is finally possible to buy your dream home. Most people who take out a loan are aware of the interest rates and payments, but a smart borrower takes the time to learn about all the different types of charges on home loans, big and small. This is important, especially when doing your research so that you choose the right lender to borrow from and don’t find any hidden costs after you’ve paid the processing fee for a home loan. Now, we’ll look at some of the most common charges for a home loan that you should know about. [B-01] Types of Charges on Home Loans Housing Loan Processing Fee for Charges on Home Loan The processing fee for a home loan is one of the most important and obvious costs of a home loan. It could also be called an “administrative fee” by some lending institutions. It’s usually a percentage of the total loan amount that you pay upfront to cover the administrative work that goes into getting and checking your loan paperwork. It’s important to remember that many banks and non-banking financial companies (NBFC) don’t give back the processing fee for home loans. This means that the charges on a home loan will not be returned, even if the loan is turned down. So, keep this in mind when you’re looking for the right lender. Administrative charges for charges on home loan Many financial institutions include all administrative costs in the processing fee for a home loan, but others may keep the two things separate. In this case, administrative charges may be added, which usually include the cost of checking out the property for which the loan is being considered. This could mean going to the site, looking at the structure, checking the law, etc. Most of the time, this kind of work is given to agencies that specialise in it. So, this could be thought of as a pass-through cost. Some lenders may also charge a home loan to log in or fill out an application. This may not be refundable or may be taken out of the total costs when a home loan is approved. When choosing a company to give you a home loan, it’s a good idea to know how processing and administrative processing fees for home loans are calculated. Payment Charges for Charges on Home Loan Usually, three types of charges can be put in the Payment Charges category. ● Prepayment Charges: This kind of charge on a home loan is also called a foreclosure charge or a pre-closure charge. It applies if you pay off your remaining home loan in full before the end of the agreed-upon term. There may be times when you think you have enough money to pay off the whole loan before the end of the original term and save on interest. But you should know exactly what the prepayment charges are and then decide if it’s in your best interest to do so. ● Late Payment Charges: As the name suggests, late payment charges on home loans happen when your monthly instalment payment (EMI) is late for any reason. To keep people from not making payments on time, lending institutions charge penalties that range from 2% to 3% per month until the EMIs are paid off and the payment schedule is back in sync. ● Fees for partial prepayment: Most loans with a variable interest rate don’t take this into account, but you need to know if your loan plan does. If you decide to pay off only part of your loan balance, you may have to pay partial prepayment charges. This will happen every time you make a partial payment, which can add up to a lot of extra money. Costs of Conversion for Charges on Home Loan It could be called a switching charge on a home loan by some lenders. When switching from one rate scheme to another, you must pay these fees on a home loan. Most of the time, this means switching from a fixed-rate interest plan to a floating-rate plan or vice versa. Sometimes, this conversion can also change the overall length of the loan. What is the difference between a fixed rate and a floating interest rate? As a cost of borrowing, the lender adds an interest rate to the home loan principal amount. Home loans usually come with two types of interest rates: a fixed rate and a floating rate. Read on to find out more about these two interest rates. ● Fixed interest rate: As the name suggests, the interest rate on this kind of home loan doesn’t change during the time it takes to pay it back. Before the loan is approved, the lender and the borrower agree on a fixed interest rate. Borrowers can choose a fixed interest rate to avoid the risks of floating rates, in which the rate changes based on the benchmark rate. ● Floating Interest Rate: Home loans with a floating interest rate give you more flexibility when it comes to the interest part. The interest rate is based on several things, such as an internal or external benchmark, which lets it go up or down depending on market conditions. Benefits of a modification charge for a home loan ● The first and most important benefit of a mod charge for a home loan is that a person gets a tax break on the interest he or she pays. This is especially helpful for people who are in high tax brackets. Getting a mod charge for a home loan can be a good idea because the interest on a mod charge for a home loan can be used as a tax deduction when you file your income tax return. ● Another benefit of mod charges for home loans is that their interest rates are lower than those of other loans, such as personal loans, car loans, home loans, and so on. This makes monthly interest payments easier for the borrower. ● Capital appreciation is another big benefit of a mod charge for a home loan. Over the past few decades, property prices have gone up much more than the amount of interest that has to be paid on a home loan. So, if a person takes out a home loan for $100,000 at a 10% interest rate to buy a house and the house’s value goes up to $400,000 in 10 years, the 10% interest rate won’t be a bad deal for the borrower because capital appreciation will cover the interest costs. [B-02] Summing up about Charges on Home Loan The goal is to convey that you can get your dream house with the help of a home loan. Getting a home loan costs money, as you can see. Listed above are some of them, but you may need to consider others and compare the charges on home loans before choosing the best lender to help you get your dream home. If you’re looking for additional information on loans, mortgages, MSME financing, personal loans, business loans, and even a handy loan calculator, check out the many resources provided by Piramal Finance.
08-11-2023
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Personal Loan

Different Kinds of Personal Loan Offerings This Festive Period

Are you ready for a personal loan offer this festive period? Are festive loans safe? How can I get them? If you Google “how many types of loans,” you can get a list of loan types. When you search for “various forms of personal loans,” you may get results for secured and unsecured loans, which are available from various financial organizations. To get a personal loan with collateral, you must have something of value to put up as collateral. On the other hand, an unsecured personal loan is one in which the lender extends credit based on your creditworthiness but does not need you to put up any assets as security. On the other hand, festive loans have much higher interest rates than other types of festive loans, including mortgages and student loans. This is due to the increased risk of recovering the funds. [B-01] A personal loan can cost anywhere between Rs 50,000 and Rs 30,000. If you want to make an informed choice, here’s all you need to know about the many types of festive loans available in India. What precisely is a “personal loan”? It’s a loan with no security that may be used for everything from debt consolidation to purchasing a large item to covering unforeseen expenses. You can accomplish any of these things if you apply for a personal loan. The size of the loan, the interest rate, and the length of time you have to repay the loan will all be determined by your credit score. Personal loans are typically repaid in a specified number of monthly instalments. What are the many types of personal loans? People in India who wish to borrow money may pick from several personal loans, which have varied titles based on their purpose: Home loan Taking out a loan to pay for a wedding is popular in India. For these types of loans, lenders often establish varying interest rates and payment terms. If you wish to modify your house, you may receive a home improvement loan. Student loan Students enrolled in a government-approved institution, or university may apply for an education loan. Most of the time, these loans have cheap interest rates and are simple to repay. Travel Loan: If you plan a vacation, you may apply for a travel loan. This loan will assist you in covering the costs of your vacation. Consolidation Loan Debt consolidation mortgages may save you money by combining your high-interest debt into one affordable monthly payment and decreasing your interest rate. This can help you keep track of your debts and save you money on interest payments. Personal loans Personal loans secured by a pension are an alternative for retirees looking to conserve money while still enjoying their golden years. Most of the time, these loans feature cheaper interest rates and additional repayment choices. Car loans If you use a personal loan as collateral for a vehicle loan, you may purchase a car with no down payment. These loans often have higher interest rates than automobile loans, but they are repaid considerably more quickly. Self-employed individuals are eligible for financing. Self-employed individuals may get personal loans if they so desire. The interest rate is higher than a standard personal loan, but the loan term is shorter. Medical loan Personal loans may be another option for paying medical expenses. The interest rates on these loans are often higher than those on standard personal loans, but the borrower has a shorter time to repay the debt. How to apply for one of India’s varieties of no-interest personal loans? Obtaining a personal festive loan is a simple procedure. You may apply in person at any participating bank or financial institution or online on this website. You must complete a digital application form with personal and financial information to apply for a personal loan. It usually doesn’t take long for a lender to review your application and determine whether or not to provide you with a loan. It’s time to get started now that you can apply for a personal festive loan online. Filling out a paper application and bringing it in person with any supporting papers is the conventional approach to applying for a personal festive loan at a bank or other financial institution. It usually takes little time from the moment you fill out an application to the time you obtain the money from the lender. Who is eligible for a personal loan? What must they do to get one? While each bank has its unique method of approving clients for personal loans, they must all adhere to the same fundamental guidelines. Personal festive loans in India may have varying eligibility requirements. A person must be at least 22 years old and no older than 58 when the loan term expires. It would help if you were employed and had a consistent source of income. You must have an excellent credit history. To proceed, you must demonstrate who you are and how much money you earn. To conduct financial transactions, you must open an account in your name. Personal loans with no collateral need documentation. Even though the documentation required by each personal loan provider varies, several items are always required. You have filled out and signed an application form. Evidence of your identity (passport, PAN card, voter ID, driving licence, etc.) You must provide documentation that you reside in the form of (a utility bill, ration card, rent agreement, etc.) Evidence that the money came from where it came from (salary slips, Form 16, bank statements, etc.) Bank deposits during the previous six months Documents demonstrating who you are and where you reside presently (Aadhar card, PAN card, etc.) [B-02] Summing-up: Once you understand the various festive loans, you can choose the one that best meets your needs. You may research and evaluate the most reputable lending businesses online, choose one to deal with after ensuring you satisfy all their conditions, and then get a personal festive loan immediately. Even though we do not provide personalised advice, Investment Reliable is a reliable source for unbiased news and trading, investing, and financial analysis. Before signing up for a service, users should conduct their research. It would help if you also read the articles on Piramal Finance because they contain more information and will teach you more.
08-11-2023
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Personal Loan

Insights to Getting the Best Personal Loan Interest Rate

A personal loan is your way to go to accomplish your personal needs. Be it buying a house, financing a marriage, planning a foreign trip, or making a down payment, a personal loan is the best fit. You can meet your requirements and at the same time pay the debt in equitable instalments. It doesn’t cause any financial distress and helps you in making smart financial choices. But, what bothers most people is the personal loan interest rate that they are charged. Sometimes interest rates can be high and paying them every month can be stressful. Interest rates vary from bank to bank. They depend on a lot of factors like the current market scenario, your credit score, loan history, etc. [B-01] This article is a complete dedication to letting you know more about personal loans, their features and benefits, and the right strategy to get the best personal loan interest rates. Personal loan: Meaning and significance A personal loan is a type of loan that helps you to cover your requirements like buying a house, making a down payment, or financing your child’s higher education. The lender in return charges you with a personal loan interest rate for a set period. You are bound to repay the loan within that period. Different banks charge different interest rates. They depend on your credentials and the current market trend. You can apply for a personal loan both in online and offline mode, depending on your preference. In online mode, the approval period and the disbursal period is less as compared to the offline mode. You also have the freedom to choose the type of loan, the loan amount, and the mode of repayment according to your suitability. As you have a rough knowledge of personal loans, let’s now find out some of their benefits. Here are some of the striking features and benefits of choosing a personal loan: Approval period: Banks approve the loan within a short period to minimise complications and delays. The period of approval for a personal loan is less than three days in most cases. However, the period can even be reduced if you have a good credit score and a healthy loan history. The approval period in online mode is quite fast as compared to the offline mode. Rate of interest: Banks often charge you a low rate of interest to make sure that you can easily repay the loan amount without any hassle. Personal loan interest rates also vary from bank to bank. They are dependent on your loan history and track record. In India, most banks charge an interest rate of about 8 per cent to 25 per cent per annum for a personal loan. Tenure of repayment: The tenure of repayment is also reasonable. It gives you ample time to manage your finances. It varies from bank to bank. It is somewhere between the range of 12 months to 84 months. The average period to repay the loan will be 12 months to 60 months, but some banks extend this period to 84 months. Collateral: Since personal loans are also called unsecured loans, there is no requirement for collateral or any form of security deposit. Banks don’t ask you for a guarantee. This feature suits those who don’t have property, shares, or any assets to pledge to get a loan. Processing fees: Some banks charge a processing fee in addition to the personal loan interest rate. However, the processing fee is minimal in most cases to decrease your financial distress, whereas some banks don’t even charge a single penny for processing fees. What are some ways to get the best personal loan interest rates? There are multiple ways through which you can get the best personal loan rate of interest and they are: Comparing different interest rates: Besides checking for what interest rates your bank provides, check for different personal loan interest rates provided by other lending institutions. Even if you are satisfied with what your bank charges, you must look for all offers available in the market. You should compare all the interest rates to get a rough knowledge of the market and then assess the best for you. You can also use a personal loan interest calculator to calculate different offers and see what suits you the best. Improving your credit score: A credit score plays a massive role in deciding your personal loan interest rate, your loan amount, and the loan tenure. So, if you have a good credit score, it builds a sense of trust between you and your lender. It also helps you get an appealing offer. Knowing about different interest rates: There are two very popular types of personal loan interest rates: Fixed interest rate Floating interest rate A fixed interest rate is one in which the interest rate is rigid throughout the tenure. It is calculated directly on your principal amount. But, in a floating rate of interest, the interest rates keep varying according to the market rates. If you are uncomfortable with the personal loan interest rate charges by your lender and you predict that the interest rate is going to decrease in the coming period, you can switch to a floating rate of interest. But, if you are comfortable with what you are paying, you can prefer a fixed rate. [B-02] Wrapping it up: The rate of interest is a key factor according to which you decide whether or not you are going to go for the loan. A personal loan interest rate is a dynamic subject, so one needs to understand the way it is determined. You have to make sure that you compare different offers, clear your loan records, and improve your credit score to get a better interest rate. In case you loved this article and you want to read more on personal loans, financing goals, and investment schemes, you can click on Piramal Finance.
08-11-2023
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Calculator

How Is a Gratuity Calculated Online?

If you work as an employee, you must be thinking about your right to gratuities. You might have heard about it, but you want to be sure you understand what it implies or how much you can expect to earn as a worker. The gratuity rule is covered in this post, along with how it affects you as an employee. Keep reading this to get a better understanding of this topic. This will enhance your knowledge. It will help you learn a lot. This is an important topic that benefits people all over the world. [B-01] Things you need to know about the gratuity rule Only those employees can claim for a gratuity rule who have completed five or more years of service. When you retire or quit your job after at least five years of service, you can become a gratuity claimant. Claiming the gratuity is interpreted as the conclusion of your employment with the employer. A gratuity payment can only be sanctioned for an employee after the completion of a minimum of five years of service. If the amount exceeds INR 50 lakh, it may be subject to taxation as mentioned under Section 32(C) of the Income Tax Act, 1961. The gratuity amount is given as the last drawn salary multiplied by the years of service completed. This is a very simple way to calculate the same. Employers pay it to employees on retirement or when they leave jobs. The amount increases only if there are exceptional circumstances, such as a casualty or death of the employee due to an accident. In the case of retirement, the maximum limit that is prescribed under the law is about INR 2,00,000 before one month’s notice. This is applicable for retirements on grounds of age and voluntary retirement. Tax benefits associated with gratuity The income tax that one can save from this goes up to 20%. With recent modifications to Section 10, gratuity is tax-free up to Rs. 20 lakh (10). It is a one-time cash payment made to the worker upon retirement. It is a tax-free amount paid by the company, not the employee. Statutory gratuities are the only payments free from income taxes. According to the Income Tax Act of 1961, which exempts them from income tax, a gratuity is a sum of money provided by an employer to a worker in honour of their achievements. The annual gratuity is calculated based on your age at the time of retirement, or at the time of leaving the job. Calculation Your gratuity amount depends on: Last drawn salary 15/26 of the last drawn salary (for conductors) or 15/30 of the last drawn salary (for non-conductors). This can also come down to 50% if there has been a long illness, maternity leave, or other circumstances. If you have worked for the same employer for more than ten years and have not received any other benefits, your gratuity will be reduced. Like medical reimbursement, you may get monetary relief instead of a pension plan, depending on your position within that organization. The formula for gratuity calculation: Last Drawn Salary 15/30 Number of Completed Years Terms associated: Last drawn salary: The average of the last ten months’ salary 15/30: The ratio of gratuity to last drawn salary Number of completed years (NWC): The number of years you have worked in the company divided by 16 Gratuity Rules 2021 The gratuity rules 2021 came into implementation on 1 April 2021. There have been changes since then. Under the new provisions stated in the gratuity rules 2021, these items are excluded from the salary of the employer: Bonus, pension, PF contributions, transportation allowance, HRA, overtime, and gratuity. After the implementation of the new labour law and the gratuity rule, the new compensation structure will have to undergo certain modifications in the future. Employees’ in-hand pay is also going to be reduced due to all these new laws coming into effect. There will be significant deductions for social security programs. Due to the new law’s restriction, an employee’s allowances cannot exceed 50% of their base pay. According to the new gratuity rule 2021, employers must raise employees’ basic salaries by 50%. By limiting the allowance to 50% of the total salary, the employer will also pay more in staff gratuities. These benefits are given to employees who have been with the business for more than five years. Employees will receive more benefits than before upon retirement as a result. Retirees should know their gratuity entitlement under the law The gratuity law applies to all employees. Regardless of age or service length. All the employees who have completed five years of service under the same employer will get an extra month’s gratuity with their salary every year. The gratuity amount is the last drawn salary multiplied by the years completed in service (i.e., INR 80,000 x 6 = INR 480,000). [B-02] Conclusion Gratuity entitlement is a critical topic in India. And we must be well informed about the gratuity rules and schemes to make informed decisions about our future. As mentioned above, certain items like bonuses, PF contributions, overtime, etc. are excluded from the salary of the employers. The gratuity rule 2021 is also going to negatively influence the in-hand salary of the employees. Moreover, all the employees will also get the benefit of a month’s extra gratuity with their salary every year. If you want to know more about gratuity rules and different investment schemes and loan options, you should visit Piramal Finance.
08-11-2023
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Guide

History of IPL (Indian Premier League)

Start of IPL The Indian Premier League, popularly known as IPL, is a professional Twenty20 cricket league in India that was founded in 2008 by the Board of Control for Cricket in India (BCCI). The IPL has become one of the most popular and lucrative cricket leagues in the world, attracting top players from all over the globe. The inaugural season of the IPL was held in 2008, with eight teams representing different cities in India. The teams were owned by various investors, including Bollywood stars, businessmen, and industrialists. The first IPL match was played on April 18, 2008, between Kolkata Knight Riders, owned by Bollywood Superstar Shahrukh Khan, and Royal Challengers Bangalore at the Chinnaswamy Stadium in Bangalore. The tournament was a huge success, drawing large crowds and generating significant revenue. IPL Over The Years: Over the years, the IPL has evolved into a major sporting event that millions of people worldwide watch. The league has expanded and now has 10 teams. The tournament is played over a period of approximately two months. The teams compete in a round-robin format followed by playoffs, culminating in the IPL final. The IPL has also been a platform for emerging cricket talent in India. Several young players have used the IPL as a springboard to launch their careers, and some have represented the Indian national team. The league has also attracted top international players, such as Chris Gayle, AB de Villiers, and David Warner, Pat Cummins among others. IPL Controversy: However, the IPL has not been without controversy. In 2013, the league was hit by a match-fixing scandal that suspended several players and team officials. The BCCI has since taken measures to tighten its control over the league and prevent any further such incidents. Contribution of IPL for T20 Cricket: Despite the challenges, the IPL remains one of the world’s most watched and celebrated cricket leagues. The league promoted T20 cricket all over the world and helped in enhancing audience engagement in this fast-paced and newly formed format of cricket. The league has been a game-changer in terms of the commercialization of cricket, and it has created a platform for cricket players to showcase their skills and earn lucrative contracts. With each passing season, the IPL continues to push the boundaries of what is possible in the world of cricket, and it remains an important part of India’s sporting landscape. Which Team won the Maximum IPL Titles? Mumbai Indians (MI) and Chennai Super Kings (CSK) have won the maximum number of IPL trophies to date. They have 5 titles in their bag. Which individual Player won the most IPL Titles? Current Mumbai Indians captain Rohit Sharma has won the most significant number of IPL titles to date. He has won 5 titles with his present team MI, and prior to that, he also bagged one title with his previous team Deccan Chargers. IPL Winners to date: Rajasthan Royals are the first-ever winner of the IPL, and Kolkata Knight Riders are the latest addition to the list y wiining IPL trophy for 3rd time in 2024. Let’s have an overview of IPL Winners to date from 2008: Year Winner Runner Up Venue Number of teams Player of the Match 2024 Kolkata Knight Riders Sunrisers Hyderabad Chennai 10 Mitchell Starc 2023 Chennai Super Kings Gujarat Titans Ahmedabad 10 Devon Conway 2022 Gujarat Titans Rajasthan Royals Ahmedabad 10 — 2021 Chennai Super Kings Kolkata Knight Riders Dubai 8 Faf du Plessis 2020 Mumbai Indians Delhi Capitals Dubai 8 Trent Boult 2019 Mumbai Indians Chennai Super Kings Hyderabad 8 Jasprit Bumrah 2018 Chennai Super Kings Sunrisers Hyderabad Mumbai 8 Shane Watson 2017 Mumbai Indians Rising Pune Supergiants Hyderabad 8 Krunal Pandya 2016 Sunrisers Hyderabad Royal Challengers Bangalore Bangalore 8 Ben Cutting 2015 Mumbai Indians Chennai Super Kings Kolkata 8 Rohit Sharma 2014 Kolkata Knight Riders Kings XI Punjab Bangalore 8 Manish Pandey 2013 Mumbai Indians Chennai Super Kings Kolkata 9 Kieron Pollard 2012 Kolkata Knight Riders Chennai Super Kings Chennai 9 Manvinder Bisla 2011 Chennai Super Kings Royal Challengers Bangalore Chennai 10 Murali Vijay 2010 Chennai Super Kings Mumbai Indians Mumbai 8 Suresh Raina 2009 Deccan Chargers Royal Challengers Bangalore Johhanesburg 8 Anil Kumble 2008 Rajasthan Royals Chennai Super Kings Mumbai 8 Yusuf Pathan IPL 2025 Overview The IPL 2025 season will begin on March 22, 2025, with the opening match between Kolkata Knight Riders and Royal Challengers Bengaluru at Eden Gardens, Kolkata. As per the IPL schedule 2025, a total of 74 matches will be played across 13 venues in India, featuring intense competition among 10 teams. The tournament will conclude with the final on May 25, 2025, also at Eden Gardens. Fans can look forward to thrilling matches, star performances, and exciting rivalries as teams battle for the prestigious IPL trophy.
08-11-2023
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Guide

Which SIP is the Best for Rs. 1000 Per Month?

SIPs are excellent for investing in markets as they provide a small budget and high profits. These schemes pool the funds from many investors and use the money to buy stock. Depending on your risk appetite and investing goals, you can start investing with just Rs. 1000 monthly. This article will look at the best SIP to invest in for Rs. 1000. So, let’s get started! [B-01] What is the the Best SIP to Invest in with Rs. 1000 Per Month? Nippon India Value Fund for SIP Nippon India Value Fund is the top contender for the best SIP to invest in. It aims to give investors stable returns and financial growth. The fund’s holdings comprise value equities across various sectors and market caps. Its portfolio includes healthcare, technology, consumer services, and financial investments. The fund’s information ratio is the highest of any comparable offering. The information ratio is a metric used to evaluate a portfolio manager’s performance. It has shown very positive returns over time, outperforming inflation. Fund Details Smallest SIP Amount: Rs. 500 Smallest Lump Sum: Rs. 500 3-Year Return: 22.47% 5-Year Return: 13.55% Expense Ratio: 1.98% Benchmark: IISL Nifty 500 TR INR Risk Level: Very High Risk AMC: Nippon Mutual Funds Franklin India Feeder Franklin US Opportunities Fund for SIP Franklin India Feeder Franklin US Opportunities Fund is an international FOF (Fund of Funds). It is among the top 5 best SIP to invest in. A broad range of market capitalizations and economic sectors are targeted for investment. Indian investors may access the US market by purchasing shares in the fund. These funds are best for long-term investments. This fund stands out with the highest AUM (assets under management) among its competitors. If you look at the fund’s performance over time, you can see that it has done well. The fund outperformed its category average by the largest margin throughout the quarter. The fund offers to invest in sectors not located in India at the moment and offers geographical diversity as well. Over time, the scheme’s effectiveness has been consistent. The fund also offers competitive returns, which are higher than its benchmark. Fund Details Smallest SIP Amount: Rs. 500 Smallest Lump Sum: Rs. 5,000 3-Year Return: 20.93% 5-Year Return: 11.89% Expense Ratio: 1.56% Benchmark: Russell 3000 Growth TR USD Risk Level: Very High-Risk AMC: Franklin Mutual Funds Canara Robeco Emerging Equities Fund for SIP This fund is among the best SIP to invest in. There is a wide set of big plus mid-cap companies within the Canara Robeco Emerging Equities Fund. Compared to large-cap mutual funds, the returns from a diversified portfolio are higher. This fund starts at the bottom when choosing companies to invest in. This fund generates steady returns because of many factors. Fund Details Smallest SIP Amount: Rs. 500 Smallest Lump Sum: Rs. 5,000 3-Year Return: 22.35% 5-Year Return: 14.12% Expense Ratio: 1.84% Benchmark: IISL Nifty Largecap 250 TR INR Risk Level: Very High Risk AMC: Canara Robeco Mutual Funds Canara Robeco Bluechip Equity Fund for SIP The Canara Bluechip Fund’s investments are in large-cap firms for short and long-term returns. This fund is best suited for long-term investors. This fund has produced above-inflation returns during its entire twelve-year lifetime. The fund’s AUM is in the top 10 in its peer group. Fund Details Smallest SIP Amount: Rs. 1,000 Smallest Lump Sum: Rs. 5,000 3-Year Return: 18.93% 5-Year Return: 15.99% Expense Ratio: 1.90% Benchmark: S&P BSE 100 India TR INR Risk Level: Very High Risk AMC: Canara Robeco Mutual Funds Nippon India Arbitrage Fund for SIP The Nippon India Arbitrage Fund finances potential arbitrage situations. Through cash-market and derivatives-market arbitrage, the plan seeks to make money. If you’re looking for somewhere to park your spare cash for the near future, this is the fund for you. Arbitrage funds make a profit by exploiting price differences between two different markets. This strategy buys cash assets at a discount. Then, they are sold at futures for a profit. The gain from arbitrage is equal to the price differential. Market volatility is ideal for arbitrage funds. Arbitrage funds benefit when cash and derivative markets have a discrepancy in pricing. Additionally, they generate new capital via purchases of prime liquid debt instruments. Fund Details Smallest SIP Amount: Rs. 1,000 Smallest Lump Sum: Rs. 5,000 3-Year Return: 4.66% 5-Year Return: 5.69% Expense Ratio: 1.06% Benchmark: NIFTY 50 Arbitrage TR INR Risk Level: Very High Risk AMC: Nippon Mutual Funds Factors to Consider Before Getting Started in Investing with Rs. 1000 Before choosing the best SIP to invest in with Rs. 1000, here are some factors to consider: Your Risk Appetite Investing depends on your risk tolerance and your ability to absorb financial losses. Long-term investments could be larger and more frequent if you have a higher risk profile. Investing Objectives and Time Frame If you want to earn interest on your assets and contribute, a programme requiring Rs. 1,000 in subscriptions may not suit you. Investing in various plans or contributing might be a good way to supplement your income. Scheme Performance The scheme’s performance is another crucial factor. Before giving money, ensure that a programme meets your requirements and wants. Fund House’s Reputation Before choosing the best SIP to invest in, check its legitimacy with banks and other financial organizations. Moreover, ensure the SIP offers a reasonable return on investment and has been around for a long time. Expenses When evaluating the best SIP investment, it’s important to weigh these fees. If the expense ratio is excessively high, the fund may not be worthwhile. [B-02] Parting words The best SIP to invest in has multiple points of interest. But scheme performance and expense ratio are the most important. The best part about SIPs is the possibility of investing with as little as Rs. 1000 per month. Having a low threshold for entry opens up the scope by default. Also, the best SIP to invest in is better than stocks or bonds for people who lack stable finances. Did you find this blog helpful? Take a look at Piramal Finance’s website for more such content! They also offer many products and services that you can benefit from.
08-11-2023
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Other

How to Create an Amortization Table in Excel

To keep track of how much you owe on a loan or mortgage over time, you may use a table called an amortization schedule. It details the principal paid, the interest paid, and the amount left after each payment. [B-01] What is an Amortization Schedule? An amortization schedule shows how much loan principal and interest you’ve paid off. Once payment is made, the outstanding balance will reflect the amount still owed. How to Create an Amortization Schedule in Excel Follow these steps to create the amortization schedule: Create column A labels Start by opening Excel and creating a new spreadsheet for your amortization schedule. Then, fill out column A with the appropriate headings to better manage your data. After that, fill in the following information in every individual cell: Fill in A1 with the loan amount. Fill in A2 with the interest rate. Fill in A3 with the months. Fill in A4 with the payments. Fill out column B with loan details The “B” column is where you’ll want to input your loan details. Fill in the information in cells B1 through B3, and leave cell B4 blank. Ensure the number you provide for “Months” is the same as the months for the loan. If the loan is for three years, you will write “36” to indicate that there will be 36 payments. Interest rates should also be a numeric amount, such as 10.2%. Calculate payments in B4 To determine the amount to be paid in B4, select it and then put it in this formula: =ROUND(PMT(₹B₹2/12,₹B₹3,-₹B₹1,0), 2) When the formula is transferred to other cells in the spreadsheet, the dollar signs indicate that the formula is still referring to the original cells. Formulate the column headings in row 7 We will now use row 7 to enter column headings. Fill in the following headings as the cell labels: Fill in A7 with the period. Fill in B7 with the beginning balance. Fill in C7 with the payment. Fill in D7 with the principal. Fill in E7 with your interest. Fill in F7 with the cumulative principal. Fill in G7 with the cumulative interest. Fill in H7 with the ending balance. Fill in the period section Place your due dates in the “Period” section. You should enter the loan’s initial payment month and corresponding year in A8. You can format the date in various ways, by including the months, days, and years. To make a cell your active selection, click it. Now, choose all cells until A368, and hold down the control key while dragging the pointer. Select “Last Month” by clicking the little lightning bolt in the cell’s lower right corner. Fill in the information from B8 to H8 Then, enter the initial amount of the loan in B8 and the remaining balance in H8. Select C8, then enter “=₹B₹4” and hit Enter. To find out how much interest you owe at the beginning of the period, insert the following formula into cell E8: =ROUND(₹B8*(₹B₹2/12), 2). Subtract the interest from the total payment in cell C8, and enter the result in cell D8 using the following calculation. =₹C8-₹E8 Then, enter the following formula into column H8 to get the amount by which the principal payment for the specified period differs from the initial loan balance: =₹B8-₹D8 Fill in cells B9 to H9. Fill in the remaining cells in the schedule, from B9 to H9. To begin, go to cell B9 and type “=₹H8” before hitting enter. Then, paste the contents of cells C9, D9, and E9 into cells C8, D8, and E8. Then, go over to H9 and duplicate its contents there. To calculate the total amount of principal you’ve paid, apply the following formula in cell F9: =₹D9+₹F8 In cell G9, use the correct formula, which is: =₹E9+₹G8 Use the crosshairs to fill up the remaining schedule Mark the range from B9 to H9 to finish your amortization plan. Hover the mouse pointer over the bottom right corner of the selected region. Doing this will transform it into a crosshair icon. When the crosshair cursor is in place, drag it down to row 367 to automatically fill in all the cells in that row. By doing so, you generate an amortization plan that you can use to: Handle loan payments Make early payments Measure progress Collect other useful data Benefits of Using a Loan an Amortization Schedule Utilizing Excel’s built-in amortization plan has several advantages. Ability to save You can save an amortization schedule created in Excel at any time to preserve its current state. This guarantees that the data you receive is current and correct, allowing you to return to your day. Offline usability Suppose you need to make changes to your amortization plan while you’re offline. In that case, Excel has you covered. Extra payment feature You can easily include extra payments into an Excel amortization plan, which is a major perk. You may easily make changes and see the monthly amount that must be increased. Interest payment management An amortization schedule clarifies your interest payments. Suppose you have questions about your interest payments. In that case, you may use this calculator to contact your loan service. User-friendliness The process of creating an amortization plan in Excel is straightforward. That’s because of the program’s user-friendliness. This makes it possible for anybody to make a budget or expense report for their own use. [B-02] Summing up An amortization schedule can be very handy if you’re considering a loan. Also, it can help you manage your finances effectively. In this piece, we learned how to make a loan amortization schedule and how its various parts fit together. Making an amortization schedule is very easy. You just need to know the basics of Excel, and you’re good to go. Furthermore, we are confident that you will be able to create effective schedules with the assistance of this guide. Are you looking for an instant personal loan? 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08-11-2023
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Everything you need to know about the importance of travel insurance

Who doesn’t like travelling? Yes, everyone! Earlier, when you are young, you would have gone on trips at least once a year. Everyone would be so eagerly waiting for the vacation. All the excitement would not just end after the vacation. You would come back from the trip, eager to share your travel experiences with your friends. As soon as you reached home, you would have probably made plans for next year’s destination too! How do I know, because I too my dear friend have been bitten by the travel bug! Have you ever wondered why you needed to take a trip? Why do your working parents get leave sanctions and are given LTC (Leave Travel Concession)? Life my friend becomes monotonous if you don’t embrace change. Travelling is also a therapy which helps you rejuvenate and stay focussed on your goals. [B-01] As you grew up, you started going on excursions organised by your school. Then you ventured out with your friends. Now probably you have taken up your parent’s role and travelling with your family! Mainly after Covid-19, the urge to travel has increased. Social distancing and home isolation have driven you to a frenzy. No wonder the rush at railway stations and airports has increased. The only positive outcome I see as the aftermath, you can now work from home. You can easily turn your vacation into a workstation and enjoy it while working! However, some safety rules are also very important to be kept in mind. Travel responsibly. While you get ready for travelling, be sure to buy travel insurance online. What is Travel Insurance? Travel Insurance is the coverage given due to any mishaps that you face while travelling. It can be either a domestic trip or an international one. Basic policies protect in case emergency medical expenses are incurred while abroad. In Comprehensive policies, insurance is provided for trip cancellation, flight delay, lost luggage and many more. Importance of Travel Insurance You might think that why should you pay an extra amount of money to buy travel insurance online? Well my dear friend, don’t let your overconfidence turn into adversity. I’m not a pessimist but that doesn’t stop me from preparing for the unforeseen. When you are travelling, you generally go to an unknown place. You are not familiar with anyone? Suppose you or your family members get sick or your flight gets delayed or your luggage gets lost. What will you do then? Don’t worry; convincing you of a happy and safe journey is my responsibility. Travel-related distress If your flight gets cancelled or delayed you are stranded at the airport. Your policy benefits ensure that you will be provided with an alternative flight as well as food and hotel costs. Trip Cancellation In case your family members become ill or there is a natural disaster, your travel plans go awry. Any financial losses will be payable. Baggage Coverage While you are travelling, there are two things that might happen to your baggage Either your bags can get delayed or they can get lost. In case you arrive at your destination and your baggage gets detained elsewhere, you will be paid for the cost of necessary items, while you wait for your bag. In case your bag gets misplaced or stolen, the cost of personal items like clothing, toiletries and medicines will be given to you. Loss of Passport Suppose by mistake you end up losing your passport. Your insurance company will reimburse the expense required to obtain a fresh or duplicate passport. Medical Emergency Have you ever fallen ill while on vacation? I hope not. If you fall sick or meet with an accident, the insurance company will reimburse the medical bills and hospitalization to some extent. Even dental treatment is covered by some companies. Hotel Extension In case of any crisis, you have no choice but to extend your stay. In that circumstance, the insurance company will pay for the extra charges at the hotel. Personal Liability In case accidental damage is inflicted on another person or property, your insurance company will handle the expenses. Assistance Your insurance company will provide 24X7 assistance. In case of any problem, please feel free to connect me for any guidance. Mandatory requirement There are certain countries, which require you to have travel insurance before permitting you a visa or visa-free passage. There are around 34 countries in which visitors should have travel insurance by compulsion. Cuba, Schengen countries, Qatar, UAE, Russia, Turkey, Egypt and Antarctica are some of them. Covid-19 coverage Especially for Covid- 19, there is particular travel insurance that also covers all these benefits. Do you know that vloggers are paid to travel to different places? Not only do they get a chance to explore a new place, but they can also make a living! Depending on your fan following on social media, you can earn a decent amount of money. Once you have established yourself, certain resorts invite you to stay and review the place. You can stay there as much as you want free of cost! Sometimes, even the resorts pay you a stipend in the hope that you promote the destination in a better way. What are you waiting for? Pick up your mobile, bag and passport (in case you want to go abroad) and you are good to go. [B-02] What if you don’t have enough money in your account? Let me solve that for you. Log into Piramal Finance personal loan webpage (https://www.piramalfinance.com/personal-loan). You can also check out their other products and services. What are you waiting for? Finance your trip and don’t forget to opt for travel insurance online. Go, travel the world and live your dreams!
08-11-2023
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Personal Loan

Loan Against Property for Education Explained

A loan can act as a great facilitator in helping you fulfil your wants, desires, and dreams. From a monetary standpoint, it can also help you gain confidence and financial independence. You can use this amount to buy a new house or property, finance education, or even invest in your business. A loan against property is a type of loan in which you pledge your property in exchange for a principal. A loan against property can help you get the financial leverage you want. The lender charges you a specific interest rate on the principal amount. You get a period to repay your loan. It is usually done in installments. [B-01] This type of loan is an ideal option for you if you don’t have shares or a security deposit to use as a guarantee. In this article, we will explore loans against properties, their features, and their benefits. Also, we discuss whether you should prefer it to finance education. What are the advantages of having a loan against property for education? The following are some of the advantages of applying for a loan against property for education: Proper utilisation of your property: A loan against property is the right way to get the most out of your assets to finance your education. Instead of selling your property, which might have more value in the future, you can just use it as a medium now. Pledging assets to get a loan is better than selling them and getting a lump sum. The latter option is permanent and cannot be reversed under any circumstance. So, it is better to go for a loan rather than sell it for an undesirable price. High loan amount: Often, banks allow a high loan amount to help you find your education. The loan amount solely depends on the market value of your property; the higher the market value, the higher your loan amount will be. Banks allow you a loan of up to 65% of the value of your property, which you can easily use to finance your education and related expenses. Shortened disbursal period: As soon as your documents are verified and you get the green card from the bank for the loan, the loan amount gets into your account within 3 business days. The disbursal period can even be faster than this if you have a good credit score and a good loan history. Appealing rate of interest: Banks charge you a low-interest rate on property loans, which is done to ensure that you give the maximum focus to covering your educational expenses. The interest rates vary from bank to bank but start at 8% per year. The interest rate also depends on your credentials, like your credit score, credit history, loan history, and the offers your bank makes. Optimum loan tenures: The tenure for repaying your loan is also very reasonable. Banks ensure that you take your time and carry it conveniently. Generally, the tenure ranges between 10 and 20 years, depending on the size of your bank. However, many banks have extended their tenure from 20 to 30 years. Flexibility: There is high flexibility in the loan application process, which is ensured by providing you with self-tailoring options. You can choose the term of the loan, the type of loan, and the way you want to repay it. A “Flexi” facility in loans against properties for education enables you to only pay interest on the amount you use, rather than paying the interest on the whole amount. Should you take a loan against properties to fund your education? If you have the opportunity to go for an educational loan, then you should prefer taking it instead of going for a property loan. The reason is simple: your interest rate will be much lower, your EMI amount will be less, and you will avail of other student benefits. Also, property loans should not be used to finance a business or any other venture, as the loan amount is high and the interest rate is comparatively higher than an education loan. Investing in a loan against properties in your business venture will also help you get some tax benefits. Due to technical reasons, sometimes you might not be able to get an education loan to finance your education-related expenses. In such a scenario, a loan against property can help you cover your educational expenses. Besides that, various government schemes like the CSIS scheme give student loans up to Rs. 7.5 lakhs. [B-02] Summing it up: A loan against property for funding Education could be a good possibility for you if you cannot avail yourself of government aid. Also, if you can’t get a student loan or an education loan for technical reasons, you should prefer having a property loan instead. Make sure you know the right market value of your property to get the desired loan amount. If you have reached this page by reading this, you must be thrilled to read more content on related topics. If yes, you should visit Piramal Finance to learn more about personal loans, financing tips, investment schemes, etc.
08-11-2023
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