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Business Loan

Pro Tips To Grow Your Small Business This Festival With The Best Business Loan

Growing a business is a responsibility that every entrepreneur holds and wishes to accomplish. Especially due to a lack of finance and cutthroat competition, it might get tough to stand in the battle sometimes. A business loan, however, can help you have the leverage and take your business venture to another level. Want to know how to grow your business in the festive season with the help of a business loan? Stick to this article to find out everything about business loans, the benefits of taking them, and the ways to grow your business and take it to another level. [B-01] What exactly is a business loan and why is it applied for? A business loan is a type of loan that you take from a lender to invest in your business and multiply your growth. The lender lets you borrow money to help you invest in buying raw materials, investing in equipment, spending money on advertising, etc. In return, the lender charges you a specific rate of interest on the principal amount and gives you a set period within which you have to clear the due. You can take that money and invest in it, growing your business, producing more goods and services for your businesses, and increasing your sales over time. It gives you a kick-start to your business and helps you overcome the cutthroat competition in the business world. What are the benefits of taking a business loan during the festival season? Since the festival is around the corner, you need to meet consumer demands effectively. And for that, you need to ensure that you produce more products, focus on providing quality services, and tackle the marketplace. Here are some benefits of getting an online business loan this festival: High loan amount: Banks offer you a high loan amount to help you invest more in your business venture. The loan amount can go up to as high as 50 lakhs. In some cases, if your credentials are strong and your business is profitable, then the loan amount can be stretched to even 1 crore. In addition, various government schemes also focus on providing you with high loan amounts and charging you minimal interest rates. No collateral: Since most business loans are unsecured, there is no need for collateral or any type of security deposit while applying for it. This is a benefit for you if you are a new entrepreneur and you lack collateral of any kind to make a start. Low rate of interest: The rate of interest on most business loans is quite low to make sure that your maximum money is invested in your business. You have to deposit a minimum amount of money as instalments and the rest you can use to grow your business. Mostly, the interest rate that most banks charge is between 15 per cent per annum to 20 per cent per annum. You can also look for government schemes that subsidise more so that you don’t have to pay high interest. Quick disbursal: The approval process is quite fast and you can get your money disbursed within a day Or sometimes, within two to three days. If your credentials are well and the bank has special offers for the festive season, then you can get approval in lesser time. How to scale up your small business with a business loan during the festive season? With increasing consumer demand, you have to make sure that you focus more on the quantity part along with maintaining the quality of your products. And to do all of that, it takes a good strategy and smart financing choices. Invest in equipment: Especially, to increase the production of products to meet customer demands, you need to buy more equipment. The new equipment will be more efficient than the previous ones and help you produce on a large scale. Invest in the workforce: The best way to intensify the whole process, you need to hire more workers. Hiring more workers will not only increase production but also fasten the process. You have to make your inventory full of your goods so that when the time of sale comes, all you have to do is focus on selling more products. Invest in manufacturing: Invest the money you take from the business loan in your manufacturing sector as well to produce more goods and keep it in surplus for your inventory. Make sure you have all the raw materials and other requirements to produce more goods in bulk. Invest in advertising and marketing: This is a very effective and huge step to increase your sales and take it to the roof. Advertising your product will let people know about your products and offers, and will bring more customers to you. This will amplify your sales and to even fasten the process, you need to market that effectively. Make sure that you don’t invest a lot of money in advertising, and focus more on product manufacturing. Website creation: If you have always wanted to have your business website, this is the right opportunity and the right time to do so. You can use a small part of this business loan to invest in creating a website for yourself. Make your website appealing, curate it, and add your social media handles to increase insights and traffic on your website. [B-02] Summing it up During the festive season, you have to make sure that your inventory is always in surplus and that you never run out of any raw materials. Use the business loan to curate your website as well so that you can connect with more customers who would like to purchase your goods. If you can manage home delivery services in your city, that would even help you increase your sales. If you liked this article, and you want to read more on this topic, you can visit Piramal Finance. It has ample content on personal finance, investment schemes, loan systems, stock market information, etc.

08-11-2023

How To?

How To Invest In A Public Provident Fund Or PPF?

What are your plans for investment this financial year? Are you aware of tax saving schemes? Want to learn more about investments? While investing, make sure you have a forecast for the long term. At the same time, the investment must be a tax-saving option. High returns and low risks are the key features of a long-term investment. These include shares, mutual funds, public provident funds, LIC, and so on. If you want a minimal-risk long-term investment, the Public Provident Fund (PPF) is one of the best options. It guarantees both the principal and the returns it provides. Want to know more about the PPF scheme? Keep reading further. [B-01] Public Provident Fund Public Provident Fund (PPF) is one of the most popular long-term investments in India. The Finance Ministry’s National Savings Institute introduced the PPF scheme in 1968. Its primary goal is to encourage people to save money. PPF also pays interest on savings. This investment combines tax benefits, financial returns, and security. It also offers an attractive interest rate. Income tax is not applied to the interest earned or the returns. Below is a table that explains the different aspects of the PPF scheme. Interest rate7.1% Per AnnumMinimum and Maximum amountRs. 500 to 1,50,000 Per AnnumInvestment tenure15 yearsTax BenefitUnder Section 80C, up to Rs. 1.5 lakhs Per AnnumMaturitysubject to the tenure of the investment Features of Public Provident Fund (PPF) Here are some of the key features of PPF: 1. Tenure PPF is a long-term investment with a lock-in period of 15 years. Only upon maturity, you can withdraw the accrued funds. You can also choose to extend your tenure for another 5 years when the real lock-in time is over. Only in cases of emergencies are premature withdrawals permitted. 2. Interest rate The government determines and pays the PPF interest rate every quarter. The PPF interest rate for the third fiscal quarter of 2022–2023, has been set at 7.1%. 3. Amount of Investment You can invest a minimum of Rs. 500 to a maximum of Rs. 1,50,000 every year. 4. Tax Benefits Section 80C of the Income Tax Act of 1961 exempts the PPF interest and maturity amount from taxation. 5. Nomination You can name a nominee for your PPF account when you open the account or even later. 6. Loan against PPF A PPF account holder can borrow against their balance. However, you can obtain the loan only in the third and sixth years. The maximum loan amount is 25% of the PPF balance. 7. Risk Factor PPF is a risk-free investment. You get guaranteed returns from it. 8. Mode of deposit You can deposit the PPF amount by cheque, demand draft, cash, or online transfer. 9. Joint Account You can have only one PPF account under your name. How To Invest In A Public Provident Fund Or PPF? Below are the steps to invest in a PPF scheme: The right time to invest in PPF There is no such ideal time, but the best time to invest in a PPF is at the start of the year. This is because if you invest in PPF in this manner, you can earn interest on your deposits for a full year. Eligibility Criteria You can open a PPF account only if you are an Indian citizen. There is no age limit for opening the PPF account. For minors, parents or guardians can open the account. You can open only one PPF account. Opening a new PPF account offline You can open a PPF account by visiting any bank or post office branch. The documents you require are as follows: Fill out the application form for opening the PPF account. You must produce ID proof, such as a passport, Aadhaar card, or Permanent Account Number (PAN) card. You must submit address proof that shows your current residence. Signature proof documents (Pan card., Aadhar card, Passport) 2 Passport-size photos. Fill out Form E for nomination details. Birth Certificate (for minor) along with the above documents for parents or guardians. After verifying the documents, you can deposit the amount in your PPF account. Each document requires self-attestation. Additionally, you must have all the original documents for validation. After validation, you will receive your PPF account number with the passbook. Opening a PPF account online Step 1: Log into the selected bank’s internet banking or mobile banking portal. Step 2: You can select the ‘Open a PPF Account’ option from it. Step 3: If the account is for yourself, click on the ‘Self Account’ option. If opening on behalf of a minor, select the ‘Minor Account’ option. Step 4: Fill in the application form. Step 5: Enter the deposit amount you plan per financial year. You can set standing instructions at this stage. Step 6: Now Apply. Once done, you will receive an OTP on your registered mobile number. Enter the same and verify. Step 7: Once verified, your PPF account is good to go. You can see the PPF account number on the screen. You will also get an email to your registered email address with all the details. Linking your Aadhaar with your PPF account online. Step 1: Log in to your internet banking account. Step 2: Select “Registration of Aadhaar Number in Internet Banking” Step 3: Type your 12-digit Aadhaar number and then click ‘Confirm’. Step 4: Choose the PPF account and link it with your Aadhaar. Step 5: Click on “Inquiry” to check the status. Withdrawal of the PPF amount You can only entirely withdraw your PPF account upon maturity, or after 15 years have passed. The whole amount and any interest accrued may be withdrawn at any time after 15 years. You can close the account upon withdrawal. However, you can choose partial withdrawals after the completion of 6 years. Premature withdrawals are permitted up to 50% of the balance in your PPF account at the end of the fourth year. [B-02] The Bottom Line The PPF scheme can be a fantastic alternative if you don’t like taking on high-risk investments, yet want the assurance that comes with government-backed investments. To learn more about financial instruments or investments, you can always visit the Piramal Finance website.

08-11-2023

Business Loan

Everything you need to know about evolution of business loan interest rate

Are you a business owner looking to invest? Or do you want to grow your business? Either way, a business loan is your answer. Running a successful business is no simple feat. Growing it is an experience. It can be both enjoyable and stressful. But, it has many financial-related points. Starting from investment to salaries, the range of expenses is vast. And businesses can have dips in certain periods. So, maintaining these necessary expenses at times can be difficult. And this is where business loans help you. All business loans have interest rates. But it depends on the lender or financial institution. It also includes loan duration and other factors. Some lenders provide cheap loans. But some charge high-interest rates. So, always negotiate the interest rates and terms ahead. [B-01] What is a business loan interest rate? A business loan interest rate is the amount a borrower must repay the lender. It is beside the principal borrowed. It is often calculated as a percentage of the total amount borrowed. Sometimes, interest and annual percentage rates (APR) are interchangeable. But they are not the same. APR also includes any extra lender fees. Many factors influence these rates. It includes credit score, loan type, and loan amount. Lenders may also have certain conditions. E.g., minimal requirements for qualification. The history of business loans in India Do you know that India’s banking system has existed for a long time? It dates even before the British empire. The Vedas and Manusmriti have talked about many money-lending practices. Sanskrit scriptures also contain terms like kusida, vardhusa, vridhi and vyaja. These refer to business loan interest rates in ancient India. As early as the 5th century, business loans were given in cash and kind. The interest that may have been imposed on such loans is mentioned in ancient texts. Baudhyana, Gautama and other lawgivers wrote these. In ancient India, offering high business loan interest rates was unethical. Later, the culture of loans in India flourished. We have proofs of the same in Arthashastra and Dharmashastra. It talks about providing business loans at different interest rates. The Dharmashastra only allowed Vaisyas to become moneylenders. They used to levy higher interest rates to lower caste borrowers. Then, during the Mughal era, Dastawez came into play. It was a new type of money lending that became popular. The Industrial Revolution (1733–1913 A.D.) shifted India’s focus from agriculture to industrial processes. People needed more capital for business. Thus, the whole system developed. Many merchants offered business loans to entrepreneurs. It was to help them expand their workforce. Indentured loans were also common. The borrower had to repay the amount by working on the lender’s land. Seths and Shroffs were moneylenders. They helped merchants with business loans during the early days of the EIC. Many banks were also established in India during British rule. The first European bank, the Bank of Hindoostan, opened its doors in Calcutta in 1770. It offered loans for overseas trading. It did, however, fail in 1832. Banking activity began in full swing in three presidencies. These are Bombay, Calcutta and Madras. The Bank of Calcutta was established in 1806. It aimed to fund the battles of the Marathas and Tipu Sultan. The Allahabad Bank was formed in 1865. It is still operational today. After this, other banks were created between 1906 and 1911. It was due to the Swadeshi Movement. The Reserve Bank of India was created in 1935. It was in response to India’s economic difficulties after World War I. Business loans during the 20th century: The advent of technology The nationalisation of banks was a major practice post-1947. In 1949, the RBI was nationalised. It was appointed as the reserve bank regulator for all banks. India nationalised fourteen banks in 1969. This was to increase public access to banking and commercial financing. With technological advancement, economic liberalisation in 1991 marked a new beginning. The global internet revolution was in full swing. The financial industry quickly jumped on the wagon. Since then, many banking functions have been automated. Customers can now apply for business loans online. This boosted the lending process. It also encouraged more people to apply. There was a rapid modernisation of payment systems and settlements. This includes ECS, RTGS, and NEFT. These generated many business opportunities. And it helped small businesses to function well and fast. Business loans of the 21st century The whole peer-to-peer lending gradually underwent a drastic transition. Previously, financial institutions offered a wide range of services. But they were under a single umbrella. This included almost everything. For example, typical banking, mortgages and trade services. FinTech, in its most basic form, separates these services into discrete offerings. It combines services and technology to offer better solutions. This is how FinTechs are more efficient and reduce transaction costs. Mobile payments, blockchain and digital currencies are prominent Fintech inventions. These have radically revolutionised the financial system. Today fintech has changed the whole banking process. Now, many business loan providers offer all businesses simple and quick platforms. It helps people to apply and get working capital fast. Also, lenders can now better understand their clients’ demands. They can provide customised products and services. Now borrowers can get business loans within a few hours of applying. All thanks to FinTech. You do not have to wait for loan approval for days. It takes just hours if you provide the correct documents. [B-02] Final thoughts If you are looking for quick business loans, Piramal Finance has got you covered! We have over 40 years of expertise and over 1 million customers. So, we are dedicated to offering you good business loan interest rates. We also have many company loans with no collateral at low rates. Get your loan approved fast without much hassle. The whole loan application procedure is paperless. Loan repayments are also quite flexible! You can pay in instalments at your capacity.

08-11-2023

How To?

Complete guide on how to calculate HRA

HRA is one of the most important factors to consider for your salary. HRA stands for House Rent allowance. It is taxable under the Income Tax Act. Every employer is responsible for providing HRA to their employees. If you are a salaried employee, you can claim HRA. The house rent allowance helps to meet all your accommodation-related expenses. It is the amount your employer will provide the employees with the cost they need for a rented property. If you are eligible for HRA, you can reduce the tax liability. The allowance may vary depending on your city, as it helps cover the cost of living in that particular city. [B-01] What is HRA? HRA stands for House rent allowance. The employer provides employees HRA to cover the house rental expenses that the latter needs to pay. It is an integral part of the salary slip of the employee. The allowance is taxed depending on different factors. If the employee needs to pay rent of more than Rs 1,00,000 annually, they will need to provide the PAN number while filing for the returns. If any employee pays the rental expense but does not get the HRA from the employer, they can claim it under Section 80GG of the Income Tax Act, 1961. This is also valid for self-employed individuals who do not receive salaried income but are paying rental expenses. What is an HRA Tax Exemption? As per the Income Tax Act of 1961, the HRA is exempt from the taxation of the employee. The rest of the amount will still be taxable. Certain criteria are met to understand how much allowance for house rent will be deducted from the salary. It is essential to calculate the deductions of income tax calculation. However, the HRA online can play an important part in making the right choice. A salaried employee will not be able to claim HRA if they live in a house of their own. The main purpose of allowance for house rent in the salary is to cover rented properties and not for properties you own. Compared to the old regime, significant changes have been brought to the new regime. As per the new regime, there won’t be certain exemptions that existed in the old regime. You need to file for the deductions properly. If you need help with filing for the allowance, you can get in touch with professionals. The accountants and financial experts are well aware of HRA deductions and can help you make the right choice in filing. How is the HRA Calculated? The House Rent Allowance, as stated above, is a major part of your salary. Certain factors will be considered while calculating HRA. Some of the major factors that will form to be an important part of the HRA include the following: Salary: The Dearness Allowance and Special Allowances of your salary will be important in determining how much HRA you can get from your salary. Rent paid: The rent you pay for living in the expense is one of the main factors to consider for HRA online claims. You can only claim the HRA if you have sufficient proof. You will need the bank statement, rent receipts, and lease agreements to provide that the rent is being paid every month from time to time. HRA from Employer: How much HRA does your employer provide you? You will only be able to make claims if you’re familiar with these factors. Residence: The place of residence will have a huge impact on HRA. Anyone living in a metropolitan city should have an HRA of at most 50% of the basic salary. For the ones living in a non-metropolitan city, the limit is around 40% of the basic salary. Can I Claim Hra If I’m Also Claiming Home Loan Deductions? You must know the eligibility requirements if you consider claiming home loan deductions on your tax return. If you meet the requirements, you can claim HRA and home loan deductions on the same tax return if it’s an eligible deduction. Here’s a guide to calculating your HRA deduction: HRA Exemption You may be eligible for the HRA exemption if you’re an Indian employee contributing towards your income tax liability. This exemption is a provision in the Indian Income Tax Act that allows employees to contribute up to Rs 2 lakh towards their income tax liability. To qualify for the exemption, the employee must earn more than Rs 6,000 per month and have been with the company for at least six months out of the past 12 months. If you need help calculating your HRA eligibility, don’t hesitate to reach out to us. HRA Exemption When Employer Refuses to Provide Deduction Benefits If your employer refuses to provide deduction benefits, it is easy to calculate your own HRA. This can be done by using a calculator or online calculators available online. The amount you get back will depend on the type of employee you are and the size of your employer. Be sure to speak to an accountant if you have any questions about calculating your HRA exemption. HRA Exemption When More Than 1 Family Member Pays Rent If you are the only one paying rent in your house, you are exempt from having to pay HRA. This exemption also applies if more than one family member pays rent for part of the year – they will be considered tenants and, therefore, liable to pay HRA. Make sure to keep all official documents, such as leases, receipts, etcetera, to prove this exemption is applicable. If you still need official documents, you can claim an exemption by proving that the other family members are not occupying the property full-time. [B-02] Conclusion In this comprehensive guide, we have explained everything you need to know about the HRA exemption. From the meaning of the exemption to the various ways to save tax using the HRA, you will be adequately equipped to claim your exemption and save tax as required. You can schedule an appointment with Piramal Finance professionals to clarify any doubts.

08-11-2023

How To?

How to Transfer EPF Online Through EPFO Portal?

The Indian government would pay the employer and employee contributions to employees’ EPF accounts. For an additional three months, from June to August 2020, the edge goes to businesses with fewer than 100 employees, 90% of whom make less than Rs 15000 a month in pay. Non-government organisations now only contribute 10% instead of 12% to the EPF. An individual can open a Public Provident Fund (PPF) or Employee Provident Fund (EPF) account. Both require the employer and employee to contribute a portion of their earnings. Because of their E-E-E (exempt-exempt-exempt) nature, Employee Provident Funds (EPF) are a great option for paid individuals. It was decided that making investments in EPF, earning interest through EPF, and withdrawing from EPF after five years were all privileges. This article describes the process of performing a PF transfer online. Keep reading to learn more about it. Required Form for PF Transfer Transferring PF monies across accounts necessitates the use of Form 13. To transfer their PF balance from their old account to the new one. When salaried individuals switch employers covered by the EPF Scheme, they must fill out this form. This is very vital. EPA Form 13 The EPF offers a transfer form called EPF Form 13 that can be received in person or online. Fill out the PF Form 13 and submit it to transfer the EPF account. Qualification for PF Transfer Employees are required to confirm that their registered mobile number and UAN are operational on the EPFO portal. When requesting a transfer The PF subscriber must sync any bank information that has been confirmed by the company, such as bank account information and an IFSC number. On the EPFO website, the employee must enter their Aadhaar data. The site should show the joining and departing dates of the PF participant. Additionally, the worker must give their reason for quitting. Please keep in mind that the EPFO portal only permits one PF transfer request to be submitted at a time. Now that customers are aware of how to move PF online, it’s time to identify the paperwork you’ll require to ensure that everything goes smoothly. Below is a list of the paperwork needed for the online PF move process. Alternatives for PF Transfer For PF transfer, there are primarily two approaches: PF Offline Transfer The employee must fill out the PF Form 13 with all pertinent information and submit it to the current employer to use the offline PF transfer option. Following that, the existing employer will send the application to the EPF office. The form will then be sent to the former employer by the EPF office for verification. After receiving confirmation and attestation from the prior employer, the EPF office will transfer the remaining funds from the old account to the new one. There is no need for copies of the applicant’s UAN or Aadhaar card. When a person has numerous staff IDs, the EPFO assigns each employee a UAN, which acts as a unique identification number. Online Transfer Claim Portal (OTCP) A method for transferring PF funds online. To use this helpful online portal, the PF member does not need to provide their UAN, Aadhaar, or other documentation. By attempting to submit a few financial details and employment information, you can transfer your PF. One Employee, One EPF Account: This regulation was put in place to prevent confusion brought on by having numerous PF subscriber data. All current PF accounts will be included in this endeavour, according to EPFO. The PF members’ ability to submit multiple PF transfer applications helps achieve this. Automatic EPF balance transfers are only possible when transferring a PF account from another account, and they require the subscriber’s UAN. The subscriber doesn’t have to exert much effort during this process. The PF will be allocated when their new employer enters their UAN into the system. Pension Plan for Employees The Compensation Act of 1952 specifies how an Employees Provident Fund (EPF) operates. Organisations with 20 or more employees must follow it. However, other organisations may voluntarily take part in this programme. This organization might join a government-approved project, or it might launch a retirement program to build trust. Each one of the known Provident Fund Schemes requires official approval from the Commissioner of Income Tax (CIT). Documentation Needed for an EPF Transfer Form 13 Revised, Universal Serial Number (UAN), Number of Establishment, Identity Verification (Aadhaar, PAN, or Driving License), Employer Information (must be Your Current Employer), Financial Institution Information, and PF Account Information (for both old and current accounts) How to Complete an Online EPF Transfer Form Step 1: Log in to the primary webpage of the EPFO portal using your credentials. Step 2: Once you’ve logged in, click the “Online Services” page. Then “Each Member – One EPF Account (Transfer Request)”. Step 3: Carefully go through all the data on the screen, then enter the details of the PF account to which the money will be transferred. step 4: To obtain the account details for the prior job, choose “Get Details” in. Step 5: Click on “Previous Employer,” then type the UAN and the final ID number. Step 6: Complete the online EPF Form 13 form. Step 7: To enable tracking of the application process, a tracking ID will be generated. Step 8: is to duplicate the form and sign it. After the date of procurement, the applicant has ten days to submit the aforementioned paperwork. Step 9: Both new and former employers must certify the data on the application. Step 10: Before the funds are moved to the new account, the information on the form must have the approval of both employers. [B-02] Conclusion It’s usual for workers to change jobs mid-career between PF-registered firms. But transferring PF rather than withdrawing it can help to protect it. Another key tax consideration is the fact that withdrawals from the PF done within five years of employment are taxed. Your UAN account is where all of the PF money from previous jobs is accumulated under several member IDs. The EPFO portal will save you the time it would take to look for your own money.

08-11-2023

Personal Loan

10 Useful tips to manage your car loan emi

Does your vehicle drive you up the wall regarding its EMIs? Let’s try to find a way to make this drive a smooth one. Vehicles have long since shed their luxury label and become a necessity. Financial planning before purchasing a car is critical for ensuring that the loan is properly acquired, EMIs are scheduled, and repayments are made over the loan’s duration. This will avoid hassles and debt. Digitalisation offers numerous options for managing your car loan. One such application is the car loan EMI calculator, which will guide you at the pre-purchase stage. While all this sounds easy on paper, let’s see how you can tackle your car loan EMIs. [B-01] Plan your purchase basis your lifestyle The prospect of owning a car can be both exciting and frightening. A fair assessment of your finances, savings, and spending pattern is a must. You can put together a list of all your loan commitments, and how it is impacting your monthly income. This will give you a sense of how much residual income is left for you to spend on the EMI of your dream car. Set aside a Budget Setting aside the money you are willing to allocate for this big buy helps you plan for the future. After deciding your monthly EMI commitment, you also need to decide the duration of this car loan. Here, the car loan EMI calculator assists you in determining your monthly payouts. This tool calculates an approximate EMI sum at current interest rates as well as different tenure options based on your allocated budget and car preference. The interest rate and the term of the loan are key factors that will impact your car loan journey. Research Lender options The Indian car market is booming today, with retailers offering a lot of interesting offers along with the vehicle, from easy repayment options to additional car accessories. The buyer stands to gain with multiple incentives being offered. Spend adequate time researching loans offered by several banks and NBFCs. To assist you in deciding the source of your loan, compare several offers and schemes after considering all value-adds. You can undertake this research easily through the online medium, and browse through relevant websites; most of these financial institutions have a car loan EMI calculator on their official websites to help speed up your decision. Choice of EMI scheme The EMI option you choose is directly proportional to the rate of interest and the duration of the loan. This means that a higher monthly EMI means a quicker closure of the loan, on the other hand, a longer tenure would mean paying more interest. Choose wisely, a shorter duration can help close the debt cycle faster as compared to a longer tenure. Pre-planning the loan schedule With the help of the car loan EMI calculator, you can decide your monthly payouts, and the spread of the loan duration, which helps you adjust the loan amount conveniently. The car loan EMI calculator helps you decide whether it is in your best interest to opt for a down payment along with applying for the car loan. Such planning with a car EMI calculator takes off your future worries without impacting your financial goals negatively. Timely payments You must honour your monthly payouts and try your best to avoid any defaults. This not only attracts a penalty but also impacts your creditworthiness. Multiple non-payments against your name will affect your future loan applications. Hence, always plan ahead and avoid defaulting on your EMI schedule. With a cellphone that is always handy, it is easy to set up reminders so as not to miss the EMI date. Tax Benefits You must take note that if you have taken the car loan for business purposes, you can claim a tax deduction against the interest paid. This will bring down your taxable income, thus resulting in savings. Furthermore, you can claim benefits on the depreciation of the car and other maintenance expenditures. To successfully make such claims, the car should be used for the purpose of running a business and registered in your name or the name of your enterprise. Pre-payment options When looking for a lender, always look for sources that allow you to make part payments on your car loan. This may be subject to some charges, find out what the cost of such pre-payments is. Additionally, you can also foreclose your loan before the tenure is over, this too will attract some charges from the loan provider. Make a note of all such expenses while making a decision on the car loan. Refinancing your car loan Sometimes you may be in a situation where you are unable to pay the loan as per your current agreement with your lender or lending institution. Worry not; you have the option to rework your loan terms to either rework the interest rate or extend the tenure, as may be the case. With the help of your lender, you can modify the loan agreement appropriately once you meet the eligibility criteria and get better commercial terms on the loan. Consolidating your loans Living in a day and age where we work tirelessly to fulfil most of our dreams in one lifetime, we do end up taking on several loans. In this scenario, keeping track of the EMI schedule of different loans such as personal, education, credit card, etc. becomes challenging. One way to efficiently manage your finances is to take out one major loan to pay off all the other pending loans. This loan may come with a lower interest rate and favourable payoff terms. This helps reduce your financial burden considerably. [B-02] Parting words Last but not the least, any loan is a debt until it is paid off, it is always in your best interest to try and minimize your expenses, make informed choices, and plan judiciously to avoid getting into a debt trap. To know more about car EMI calculators, loan applications, and managing your finances better, log on to https://www.piramalfinance.com.

08-11-2023

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

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

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