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How Do I Calculate the Principal Component and Interest Component of An EMI

The loan is applied to meet the financial needs. It could be a personal or home loan, depending on the situation. You have to pay interest on every loan. This rate leads to the calculation of the EMI with some other factors. Understanding the principal component analysis calculator is crucial. It helps to know the principal and interest components of an EMI. Broadly, EMI includes principal and interest. The amounts of both change during the period. This is why you should know PCA calculation. [B-01] Understanding EMI When you take a loan from a financial institution, you must repay it. The repayment amount includes the principal and interest amounts. The total amount owed is divided into monthly payments. These instalments are called Equated Monthly Instalments (EMI). You need to pay EMI until the loan is settled. For the calculation, the total principal and interest are considered. Then this is divided by the total tenure of the loan. It will give you the amount to be paid monthly. In the initial months, the interest paid is high. Eventually, the interest decreases. Though the EMI is the same every month, the principal and interest are not. Usually, the principal paid is more, and the interest paid is less. It is calculated using the interest component calculator. EMI Calculation For PCA calculation, there are four important components. The components are: Principal borrowed. Interest rate. Loan tenure. Monthly/annual resting period. Mathematically, EMI = [P x R x (1+R) ^ N] / [((1+R) ^ N)-1] P stands for the principal. It is the total amount you have borrowed from the lender. It is the base amount in the principal component analysis calculator. R stands for interest rate. It is the rate charged on the principal amount by the lender. It can be a fixed interest rate or a floating interest rate. N stands for loan tenure. It is the time given to you by the lender to repay the loan. It depends on the amount, lender, and type of loan. Principal Component Analysis Calculator Manually and Using Excel You can calculate principal and interest in an EMI both manually and using Excel. 1] Manual Calculation You must calculate EMI for the manual principal component analysis calculator. Once you have the EMI, you can use the principal and interest component calculator. Interest component = P x R Where, P stands for the remaining principal amount in the loan. R is the periodic interest rate. It is calculated by dividing the annual interest rate in decimal by 12. To calculate the principal component, use the formula = EMI – interest component. 2] Calculation In Excel The principal and interest component calculator can help to calculate EMI. The formula is: Calculating principal component of each month = PPMT(I,x,n,-p) Monthly interest component calculator = IPMT(I,x,n,-p) EMI calculator = PMT (I,n,-p) Where, i is the monthly interest rate. n is the loan tenure in months. p is the principal amount. x is the month you want to calculate the principal or interest component. EMI Amortisation Table You use the interest component calculator to determine the interest paid each month. The amortisation table outlines how you will pay off the entire loan amount. It is created based on the principal component analysis calculator. It is a table that gives you an idea of the monthly interest and principal amount paid off. Suppose you apply for a personal loan of INR 100,000. You have to repay this loan in one year. This is your loan tenure. The rate of interest is 10.5% PA. The EMI schedule is as follows: MonthPrincipal (P)Interest (I)Total EMI (P+I)Balance% of loan paid ₹ 1,00,000₹ 5,778₹ 1,05,778₹ 1,05,7780%Jan₹ 7,940₹ 875₹ 8,815₹ 92,0607.94%Feb₹ 8,009₹ 806₹ 8,815₹ 84,05115.95%Mar₹ 8,079₹ 735₹ 8,815₹ 75,97124.03%Apr₹ 8,150₹ 665₹ 8,815₹ 67,82132.18%May₹ 8,221₹ 593₹ 8,815₹ 59,60040.40%Jun₹ 8,293₹ 521₹ 8,815₹ 51,30648.69%Jul₹ 8,366₹ 449₹ 8,815₹ 42,94157.06%Aug₹ 8,439₹ 376₹ 8,815₹ 34,50165.50%Sep₹ 8,513₹ 302₹ 8,815₹ 25,98874.01%Oct₹ 8,587₹ 227₹ 8,815₹ 17,40182.60%Nov₹ 8,663₹ 152₹ 8,815₹ 8,73891.26%Dec₹ 8,738₹ 76₹ 8,815₹ 0100% You can see that the principal is initially low while the interest is high. But coming to an end, interest is low, and the principal is high. 5 Things PCA Calculations Display About EMI PCA calculation displayed the following 5 important aspects of EMI. Your EMI depends on loan tenure, interest rate, and loan amount. The EMI remains the same throughout the loan tenure. The EMI is divided between principal and interest. Interest makes up a major portion of your EMI payment during the initial years. The EMI amount might change if there is a change in the interest rate. How Can EMI Change During Loan Tenure? The PCA calculation displayed the interest and principal components separately. The EMI remains the same during your loan tenure. But the EMI can change under certain circumstances. The following factors influence the EMI: 1] Loan Prepayment You can repay a part of your loan early if you have funds. It will change the outstanding amount of the loan. You will now calculate the EMI on the remaining amount. It will change the EMI to be paid to the financial institution. 2] Floating Interest Rate In the case of fixed interest rates, the EMI is always the same. But in the case of a floating interest rate, interest changes according to market conditions. It also affects the EMI. 3] Flexible EMIs Some financial institutions give you the option to change your EMIs. The EMI can be increased or decreased. It is linked to your income and is calculated after a certain interval. 4] Progressive EMIs It allows you to pay a fixed EMI per PCA calculation during the initial years. Later, the EMI amount increases. It is usually applied to long-term loans. [B-02] Conclusion The EMI calculation is very important. The right calculation can help you with efficient financial management. The principal component analysis calculator can help you identify the principal and interest components. Visit Piramal Finance to get a loan with a complete PCA calculation. Manage your funds efficiently with proper knowledge of your loan’s principal and interest component calculator.
08-11-2023
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Personal Loan

Personal Loan for Honeymoon Expenses

Indian weddings are a huge festival in our culture and include a lot of fun. As fun as a wedding seems, it is very hectic in reality. It demands a lot of preparation for the guests, relatives, family members, and also for the couples who are marrying. And above all of that, the expenditure on a wedding touches six figures sometimes. Not only the wedding, but the honeymoon ritual that is followed post-wedding requires a lot of preparation as well. It is a way for couples to have an escape from the crowd and find themselves a medium of recreation. And to bear all that expenses, a personal loan is the right preference. It will provide you with the finance you need to cover the expenses of your honeymoon trip. [B-01] This article will focus on the personal loan for a honeymoon, the benefits, the eligibility, and the reasons for applying for it. What is a personal loan and how can it help to meet honeymoon expenses? As earlier said, a personal loan is financial aid you get from a lender to meet your personal expenses like financing a wedding, buying a house, going for a foreign trip, or covering your honeymoon expenses. In return, the lender charges you an interest rate on the principal amount which you have to pay within a set period of time. A honeymoon is a one-time event in everybody’s life and to make it special and memorable, you need to have a decent financial backup. An instant personal loan can give you that leverage and help you meet all the expenses. Let us now figure out the benefits of applying for a personal loan. What are the benefits of applying for a personal loan to meet honeymoon expenditures? There are a number of benefits of applying for a personal loan to finance your honeymoon trip and make it a memorable one: Easy and quick access: The approval period for a honeymoon loan in most banks is within two days. Banks check your legal documents and verify your credentials before approving the loan. Once you are verified, you get the approval from the bank and the money is transferred to your account in a few business days. Once you get the finance, you can start planning out your trip and make the most out of the money. To even fasten this process, you can look for an instant personal loan that is available online. All you need to do is search for these options and compare all of them to see what fits your suitability. Once you find the right personal loan scheme for your honeymoon, go for it. Collateral-free: Since all personal loans are unsecured in nature, banks do not ask you for any collateral or security deposit at the time of approval. Even if you don’t have collateral, you can very rightly apply for the loan and get the approval. Unlike education loans or home loans, you don’t have to pledge your assets and keep them as a guarantee to get a personal loan. Convenience: You have the option to pay the loan in smaller chunks called instalments. You can pay the interest amount every month on a scheduled date given by your bank. The interest rates are low on these types of loans and you don’t have to worry about cutting from your monthly budget and putting it here. Since it is a low-cost EMI, the amount is meagre and easily payable. Flexibility: You have the option to go for the type of personal loan you want. Suppose, you want to apply for a Flexi loan, you can go for it and tailor it accordingly. You also have the option to choose the tenure of repayment of your honeymoon loan. Banks mostly give you somewhere between 12 months to 60 months within which you have to repay your loan. Improving your credit history: If you take a personal loan and repay it on the due dates, your credit score is going to improve and so is your credit history. This will help you get better interest rates on loans in the future. In addition, a good credit score has a lot of other perks like free stays, special discounts, special offers from banks, etc. What are the eligibility criteria to apply for a personal loan for honeymoon purposes? You must fit into the age group of 21 years to 65 years of age to avail of a personal loan for honeymoon expenses. You must either be a jobholder under any private/government institution, or a self-employed individual with an annual income. For salaried individuals, the minimum monthly income should be 25 thousand and for self-employed individuals, the annual income should be 5 lakhs per annum. Work experience for salaried individuals is a minimum of one year and a minimum of two years for individuals who are self-employed. For applying for a personal loan, some banks ask for credit scores and credit history. A credit score of about 750 or more is considered an ideal score and will help you have better interest rates. [B-02] Summing it up: Personal loans can be applied for various reasons and the best part is that banks don’t ask you to state the reason for applying for it. In addition, for a purpose like a honeymoon, it can act as a great facilitator and help you finance your trip. A hefty amount can help you make this one-time trip of your life memorable. If you have come this far, you might like reading stuff regarding loans, investment schemes, government subsidies, the stock market, etc. And if that’s yes, then Piramal Finance is the right place for you.
08-11-2023
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Personal Loan

Personal Loan Balance Transfer – Does it Reduce your EMI?

Loan repayment is every borrower’s fundamental duty, regardless of the loan type. Be it any loan, under any circumstances, repaying a loan is the first thing that should come to mind. But with all of that comes the burden of the interest rates on different loans. Sometimes the interest rates get so high that the borrower gets exhausted and couldn’t find a way to get out of this. In the case of personal loans, some lenders often make it a tight call and you might have to suffer for that. Sometimes, they charge a very high rate of interest and sometimes the terms and conditions do not go your way. To tackle all of that, a personal loan balance transfer is carried out. This helps you change your existing lender and look for a new one who understands your conditions. Well, in this article, you will know about the personal loan balance transfer, the benefits, and the reasons to give it a shot. What is a personal loan balance transfer, and what is its significance? As mentioned above, a balance transfer of a personal loan is a process through which you change your current loan balance from the existing lender to a new one. This can happen when you do not agree to what interest rate your lender offers or the terms and conditions she provides. So, you search for a new lender who charges you a lesser rate of interest and provides you with better terms and conditions. After a personal loan balance transfer, you no longer have to pay your debt to your previous lender. But make sure that you have cleared all the dues or any existing penalties. After the personal loan transfer, you have to do the existing payments; you have to close the account and start paying your new lender from fresh. The new lender will provide you with a better rate of interest, better terms and conditions, and genuine offers. What are the benefits of applying for a personal loan balance transfer? A personal loan balance transfer can benefit you in multiple ways: Better terms and conditions: Your new lender will provide you with better terms and conditions on your personal loan. This includes zero to a minimal processing fee, lesser penalties, better tailoring options, more room for negotiations, etc. This is one of the prominent reasons why borrowers switch from an old lender to a new one. A low rate of interest: A low interest rate from the new lender could trigger you to switch from the previous lender. Especially, if your previous lender was charging you a very high interest rate, more than the market rate, and you were not comfortable paying for it. A high-interest rate might increase your EMI amount and directly impact your daily expenses. So a new lender sorts this problem out by charging you a low interest rate so you don’t have to worry about repaying in the first place. Even a very small change in your interest rate can create a huge difference in the EMI amount you might be paying. A personal loan balance transfer can help you experience the benefit of such a small change. If the interest rate you were paying was 12 per cent per annum and the new lender reduces it to 10 per cent per annum, the impact is huge. Your total EMI amount will be reduced by thousands of rupees which is a massive advantage. Tenure of repayment is long: One reason for applying for a personal loan balance transfer could be the tenure of repayment. Your previous lender might not allow you a longer period for repayment which your lender might allow for. Suppose your previous lender set a period of 12 years for you to repay the loan and the new lender changes it to 20 years or even 25 years in some cases. This causes a huge impact in terms of the interest rate and the EMI that you are paying. High flexibility: Many times flexibility plays a major role in a balance transfer personal loan. Your previous lender might not have flexible options for you, but your new lender has got the catch. For instance, if you needed to tailor your monthly instalments to quarterly instalments, your previous lender might deny it, but your new lender goes for it. This could be a decent reason for you to switch to a new lender. Better services: Sometimes, your previous lender doesn’t provide you with the services that are important to you. That includes updating your loan status, setting up regular reminders, notifying you about recent offers, etc. But your lender might do all that for you, which helps you manage your personal loan better. When should you prefer going for a personal loan balance transfer? In these cases, you should consider going for a personal loan balance transfer: If your current interest rate is higher than the market rate, you need to look for a personal loan balance transfer. If the tenure of repayment is quite high, you need to consider changing your previous lender and looking for a new one. If your lender’s terms and conditions do not suit you, you have every right to switch to a new lender. If your new lender is giving you better services like tailoring options, updates, offers, etc., you can think of giving it a shot. If you are not convenient in paying the instalment that you are paying currently, you should go for a personal loan balance transfer. Wrapping it up: To answer the question, yes, a personal loan balance transfer can reduce your EMI amount, provided that your new lender charges you a lower interest rate and has flexible options. But before making a decision, you must contact your bank and your advisor and let them know about this personal loan transfer. You can compare different lenders and approach them separately to find out which one is the right fit for you. If you have reached here, it is clear that you are interested in reading about these topics. If so, you can visit Piramal Finance to learn more about personal loans, mutual funds, smart financing, stock market investment, and more.
08-11-2023
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Personal Loan

Personal Loan for Maternity Care Expenses

Being a parent is one of the most heavenly experiences that one can go through. The level of joy and ecstasy is always above the bar. With bearing a child comes great responsibilities and a lot of expenses. Childbirth requires a lot of care from the mother. It includes proper nutrition, hospital visits, medicines, etc. Maintaining all of these costs on your own might occasionally be difficult. A personal loan for maternity care is an excellent idea to consider if you need to cover all the costs. You can pay for all of your maternity expenses with a personal loan during your pregnancy at a low EMI rate. [B-01] In this article, you will know everything about applying for a personal loan for meeting all the maternity expenses, the benefits, and the reasons for going for it. What is a personal loan in the context of maternity expenses? As popularly known, a personal loan is financial aid that you receive from a lender for a set period to meet your expenditure. The lender charges you a rate of interest on the principal amount. You have to repay the principal amount in the form of instalments. A personal loan can also be thought of as a viable solution to pay for all maternity costs, from prenatal treatment to postnatal care. A personal loan for pregnancy can cover all the expenses including the nutritional requirements of the mother, regular hospital visits, tests and reports, medicines, etc. What are the maternity expenses that can be covered by a personal loan? For IVF procedures: Many couples are unable to conceive due to infertility issues or any other complications. This is why IVF (In-vitro Fertilisation) is the way to go for it. IVF is an expensive affair. A personal loan can help you cover all the medical expenses. This process requires somewhere between 2 lakhs to 5 lakhs. A personal loan for pregnancy can easily cover all these expenses. Prenatal expenses: Prenatal care is one of the most important steps to having a healthy child. This includes healthy nutrition, yoga, lifestyle changes, doctor visits, tests, etc. A personal loan will be the best option to cover all of these costs. Delivery and surgery expenses: The day of delivery is very crucial. It will demand a hefty amount of money. The surgery procedure, OT charges, medicine bills, etc. will be expensive. A personal loan for pregnancy can help you cover all of that. Postnatal expenses: After the child is born, the expenses even increase. These include the care of both the mother and the child. After delivery, the baby requires the right nutrition, supplements, regular check-ups, etc. and the same goes for the mother. A personal loan in this case will cover all these expenses. You can also ensure that your child receives the care it deserves. Other string of expenses: After childbirth, there will still be certain expenses which you would not have expected. This includes renovating your home to make it more habitable for the child or buying childcare accessories. What are the benefits of taking a personal loan for pregnancy? There are many benefits of choosing a personal loan over other types of loans and financial aid for maternity-related expenses. Instant approval: Since the reason for applying for a personal loan is to meet the expenses of childcare, the process is hassle-free. The approval period is within a day or two. It is followed by the disbursal of the money within hours. Flexibility: You can easily repay the loan amount in the form of instalments. These instalments can be as low as 1500 rupees to 3000 rupees a month in most cases. So, since the amount is too little, you can easily pay it off. You can make sure that the mother and child receive the best care. You also have the option to tailor your loan according to your convenience. Minimum documents: Documentation requirement is minimum. This means there would be no useless time consumption and paperwork. No extra charges: The reason for this loan is sensitive. Banks often do not charge extra fees or penalties in any case. You have the liberty to ask for any extra charges as the whole process is transparent. While taking a personal loan, you don’t even have to pay processing fees as well. Eligibility criteria to avail of a personal loan for maternity-related expenses: The eligibility criteria for the personal loan for pregnancy is simple and requires only two things: Age limit: Mostly this is an optional requirement, but banks expect you to be between the age group of 21 years to 45 years. In many cases, aged mothers are also given the same preference but some banks have a benchmark for the age limit. Salary: Salary is a factor that is included in the eligibility criteria for availing of a personal loan for pregnancy. A monthly salary of 25 thousand to 30 thousand is the benchmark requirement for many banks. There are even banks that consider 10 thousand rupees per month to be the perfect requirement. [B-02] Wrapping it up: A personal loan can give you the perfect leverage to cover all the expenses of the mother and your child. You must look for different offers and compare them to find the option that suits you the best. A personal loan for pregnancy is easily payable with low rates of interest and low-cost monthly instalments. In case you are interested to know more about personal loans and different investment schemes, Piramal Finance is the right place for you.
08-11-2023
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Other

What is an Amortization Schedule? How to Calculate with a Formula

Most mortgages are designed in such a way that people pay the same sum each month. The principal and interest of the loan are allocated differently over time. Amortization is the practise of repaying debt in regular and equal installments. This deposit is used to pay a portion of the principal and a part of the interest each month. When you make the payments on a mortgage, the majority of the money goes toward interest. Just a tiny amount is used to pay down the debt. This balance adjusts during the tenure of the loan. Each payment goes more toward the principal and less toward interest. [B-01] What is an amortization schedule? An amortization schedule is a table for calculating amortization. It specifies the periodic payments for an amortising debt. The principle of an amortising loan is that it is fully repaid throughout the term of the loan. An equal payment is made every time. The amortization schedule details how much you pay in interest and principal over time. It also denotes the total amount owed. The table shows the interest rate for the monthly investment in terms of the principal. This can be useful for things like reducing interest payments for tax purposes. A loan amortization calculator is used to create amortization schedules. The following loans are the most likely to incorporate amortization: Home loans Banks and lenders can offer fixed-rate mortgages with fixed amortization schedules. These are up to 15 or 30 years old. But some lenders may instead provide an adjustable-rate mortgage. This may impact your amortization schedules in the future. Personal loans Personal loans may be available from some lenders with an amortization schedule. These loans have a three-year repayment period. This is used for things like loan consolidation or modest improvements. Car loans These loans are for five years. They allow people to repay in monthly payments with interest rather than one lump amount. Why is it important? Loan choices are easier to examine. Amortization schedules make it easier for people to evaluate loan alternatives. They show how much money they’ll spend on each sort of loan. It also shows the total accumulated interest. This can help customers assess which loan’s interest rates present them with the greatest payment choice. The timeline can be adjusted. People can use an amortization schedule to change their payment timeline. This is based on how much they pay toward their loans each month. This allows them to repay the debt sooner and change the repayment schedule. This, thereby, saves them money. Loan instalments are fixed. When taking out a fixed-rate loan, the amortization plan may help consumers keep track of their payments. It also helps them keep track of the current amount of interest owed. This enables people to plan their payments better and manage their money. It is an opportunity to build equity. The amortization schedule may allow consumers to accumulate equity depending on the type of amortization loan they obtain. How is it calculated? The monthly interest is figured by dividing your rate of interest by 12 and multiplying it by the current loan balance. Your monthly payments are then increased by the principal amount. Servicers compute this amount monthly to ensure that your loan is paid off by the end of your term. When these amounts are recalculated, your mortgage balance decreases. If you need to compute your total monthly payment for any reason, use the following formula: Total Monthly Payment = Loan amount [I (1+i) n / ((1+i) n) – 1)] where: I = monthly interest rate. You should double your annual interest rate by 12. If you have an annual interest rate of 6%, your monthly interest rate is.005 (0.06 divided by 12 months). n = the number of payments made over the life of the loan. Divide the number of years of your debt by 12. A 30-year mortgage loan, for example, would have 360 instalments (30 years x 12 months). If you know the loan term and total monthly payment amount, you can easily draw up a loan amortization plan. You can do this without using an online amortization schedule or calculator. The following formula is used to determine the monthly principal owed on an amortized loan: Total Monthly Payment – [Outstanding Loan Balance x (Interest Rate / 12 Months)] = Principal Payment Entering the principal, interest rate, and loan duration into a loan amortization calculator yields an amortization schedule. However, if you know the loan rate, the outstanding balance, and the loan period, you may calculate the amortization by yourself. How can this help save money? A debtor will pay less interest over the entire term of the loan and pay off their mortgage faster if they make overpayments on their mortgage. Even a small extra principal payment could save them money in the long run. When considering paying off a loan before maturity, it’s critical to ask your servicer if there are any prepayment penalties. Prepayment penalties are the costs paid if a debtor repays the loan too quickly. [B-02] Conclusion Learning amortization and monthly mortgage calculation might result in repaying your debts early or repaying the principal amount. Amortization has several benefits. For instance, it is recorded as an expense in the entity’s accounts. This leads to lower tax payments. It also helps find the actual value of the business assets. It has several long-term benefits. Interested in reading more about amortization or another financial topic? Visit Piramal Finance to learn more.
08-11-2023
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How To?

Information on How to Link Aadhaar with an EPF Account

How to link UAN with Aadhaar? What are the essential steps for linking UAN with Aadhaar? Why is it important to link UAN with Aadhaar? The Employers’ Provident Fund Organization (EPFO) has made it easier for employees to connect their Aadhaar cards to their Universal Account Numbers (UANs). This will make things simpler for employees (UAN). An Aadhaar number may be linked to an EPF account in two ways: online or in person. The EPFO, India’s workers’ pension fund, has enabled all employees to access their PF accounts online. To link UAN with Aadhaar, they must go to the EPFO website. People may connect their Aadhaar card to their EPF account in five ways. [B-01] Step-by-Step Instructions for Linking Your Aadhaar to Your EPF Account To get started on the EPFO website, go to https://unifiedportal-mem.epfindia.gov.in/memberinterface/. Enter your UAN and password to access your account. Choose “Know Your Customer” from the “Manage” menu to link Aadhaar with EPF account To proceed to the next page, follow the instructions to connect your Aadhaar number to your EPF account. Select “Aadhaar” from the drop-down menu, then enter your 12-digit Aadhaar number and name as they appear on your Aadhaar card. When you’re finished, click “Save.” Once your Aadhaar has been saved, it will be compared to your UIDAI data. If your KYC papers are approved, go to the next step to connect your Aadhaar to your EPF account. When you do this, you will see the term “verified” appear next to your Aadhaar details. Once your Know Your Customer (KYC) paperwork is confirmed, you may connect your Aadhaar number to your Employee Provident Fund (EPF) account. This way, you can connect your UAN Aadhaar link to your account. EPF Aadhaar link in offline mode EPFO has made linking an employee’s Aadhaar number to their EPF account so simple that even people who have never used a computer before should be able to do it. Employees may also go to their nearest EPFO office and fill out a paper application to connect their EPF account to their Aadhaar. In the same way, the UAN Aadhaar link is important. To apply for Aadhaar seeding, one must complete the necessary documents. Enter your Aadhaar number, Unique Account Number (UAN), and any other information required to complete the form. Submit the form with self-signed copies of your Aadhaar, PAN, and UAN. Hand it over to a manager at any CSC or EPFO branch office. Your Aadhaar number will be connected to your EPF account when all essential checks have been completed. A text message will be issued to your registered mobile phone number informing you of this. All these steps are essential for the UAN Aadhaar link. Create a UAN using the UMANG app and link it to your Aadhaar number Two Indian government entities, MeitY and NeGD, created UMANG to promote mobile governance across the nation (Unified Mobile Application for New-Age Governance). To make an online EPF claim, you must have a UAN Aadhaar link. Your EPF account will be connected to your Aadhaar profile as soon as you link your UAN to your Aadhaar. You may connect your EPF account to the UMANG app by following these steps: Download the UMANG app from a major app store, such as the Apple App Store or the Google Play Store. The second step is to input the phone number you provided when you joined, if you did not previously. Third, click the “Continue” button after entering your “MPIN” or “Enter OTP.” Fourth, enter the one-time password (OTP) supplied to the phone number you provided when signing up. The fifth step is to create an MPIN, which is required before you can re-use the software. After entering your MPIN, you may use the UMANG app normally. After logging in, choose “EPFO” from the “All Services Tab.” Join EPFO’s e-KYC services. From the list of e-KYC services, choose Aadhaar seeding. Enter your UAN and press the “Get OTP” button. You’ll get a one-time password (OTP) on your mobile phone, which is the number you provided when you set up your EPF account. Enter the details from your Aadhaar card. A one-time password will be sent to the email address and mobile phone number. Your UAN Aadhaar link will be working when you use the OTP to validate your account. Follow these steps for the UAN Aadhaar link. The EPFO’s e-KYC Portal may connect PF accounts to Aadhaar cards using a one-time password Now you can link Aadhaar with EPF account using a one-time password (OTP) via the EPFO e-KYC portal. Please follow the instructions below to connect your Aadhaar number to your EPF account. To begin, go to https://iwu.epfindia.gov.in/eKYC. The second step is to click “Link UAN Aadhaar” under “EPFO Members.” Third, input your user identification number (UAN) and the number of your registered mobile phone to get an OTP. Type the OTP delivered to your phone in the fourth step into the “Confirm OTP” box. Enter your gender. Enter your Aadhaar card number and proceed with the processing of UAN Aadhaar link. To validate your Aadhaar card, choose “Using mobile/email-based OTP.” You will see another OTP issued to the email address and phone number you provided when signing up. In the box that appears, type “captcha.” Press the “Submit” button. After passing the verification procedure, your Aadhaar number will be connected to your EPF account through the EPFO’s e-KYC portal with a one-time password. All these steps are important for the UAN Aadhaar link Biometric credentials should be utilised to connect Aadhaar to the EPF Use your biometric credentials to connect your Aadhaar number and EPF account using the EPFO’s e-KYC portal. So follow these steps for successfully using the UAN Aadhaar link successfully: To begin, go to https://iwu.epfindia.gov.in/eKYC. The second step is to go to the “EPFO Members” area and click the “Link UAN Aadhaar” option. Third, you must enter your user identification number (UAN) and your registered mobile phone number to generate an OTP. Fourth, enter your phone’s one-time password (OTP) in the “Confirm OTP” section. Determine your chosen gender. Enter the “Aadhaar” number from your card. To continue with the Aadhaar verification procedure, choose “Using Biometrics” from the drop-down menu. Your biometric information will be collected using a registered biometric device. In the box that appears, type “captcha.” Press the “Submit” button to complete the steps of the UAN Aadhaar link. Following verification, using a one-time password, the eleventh step is to connect your Aadhaar number to your EPF account on the EPFO’s e-KYC portal. You should connect your Aadhaar number to your EPF account for several reasons The Employee Provident Fund Organization has requested that over 4 lakh customers connect their EPF accounts to Aadhaar so that data may be reviewed more swiftly. Here are some of the advantages of linking your EPF account to your Aadhaar number: When you connect your Aadhaar to your EPF and UAN, there is little likelihood that your information will be incorrect or contradict the information on your Aadhaar card. You must connect your Aadhaar number to your EPF account to avoid having more than one. You may withdraw funds from your PF account online, and your employer is not required to sign any documents. Using the Internet to do this activity might be an excellent option. What you should know about tying your Aadhaar and EPF accounts together If you want to link Aadhaar with EPF account, follow these steps: Click on “Member Interface” at https://unifiedportal-mem.epfindia.gov.in/. To go to Step 2, you must provide your UAN and password. Once the member portal has loaded, use the information to locate Aadhaar. If it shows “Validated (DEMOGRAPHIC)” next to your Aadhaar Number, the UIDAI has successfully connected your Aadhaar to your EPF account. If “Validated (DEMOGRAPHIC)” is missing, the UIDAI has not yet linked the two systems. [B-02] Conclusion Employees must connect their Unique Identification Number (UAN) to their Aadhaar card to continue receiving Employee Provident Fund Organization (EPFO) benefits. It now allows workers throughout India to access and manage their provident fund accounts online, anytime. They may do this by using the UMANG app, visiting the EPFO website, or visiting the EPFO office closest to them. The UAN Aadhaar link is very important to know, and the steps are demonstrated on how to do it. Investment Reliable doesn’t give financial advice, but we provide unbiased information and reviews about trading, investing, and finance. Users should always look into things on their own. There are also more in-depth, educational articles on Piramal Finance.
08-11-2023
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How To?

Complete guide on how to select best FD plan in 2022

Investing in fixed deposits or FDs is one of the safest options if you want a stable but assured return. You won’t find a better scheme to invest your funds in if you are looking for minimum risk and unparalleled safety. These days, almost all banks are offering FD schemes with lucrative offers. So, if you are wondering how to select the best FD plan, keep reading. This article is a complete guide on how to select the best fixed deposit plan in 2022. So, let’s start. [B-01] How to select the best FD plan: Generally, a fixed deposit investment scheme offers a 5.50 to 6.50 per cent interest rate. Moreover, you can also invest your funds in as low as 7 days to 10 years. Because of these benefits, people prefer FDs over various other investment plans. While the interest and tenure part is pretty straightforward, you must check the fine print before investing your funds in FDs. Different banks have different terms that can affect your investments in FDs. So, let’s see some tips to help you choose the best FD plan with higher returns. The credibility of Banks and NBFCs When you invest your money as a fixed deposit in a bank or financial institution, you entrust the banks with your money. The tenures of FDs are relatively longer than any other investment scheme. So, you must ensure when the FD matures, the bank should be there to give the return. You can check the safety rating of any fixed deposit scheme by matching the ICRA’s MAAA rating or CRISIL’s FAAA rating. As a thumb rule, the higher the rating, the more trustworthy the plan. Moreover, try to open an FD account in a bank instead of any other financial institution. Generally, banks offer a higher interest rate on FD than savings accounts. Interest offered: The interest rate on fixed deposits usually differs from bank to bank. However, banks can’t offer whatever interest rate they want on FD. The Reserve Bank of India regulates the interest rate on FDs. The RBI guarantees a return of up to one lakh against the insolvency of banks. So, while the banks may offer a lower interest rate on fixed deposits compared to corporate and other NBFCs, you get assured returns. So, it would be better to choose a bank over a corporate and NBFC if you are looking for the best FD plan. Reinvestment on interest earned: Banks offer both cumulative and non-cumulative deposit options in FDs. You can reinvest the interest earned on the FD with a cumulative deposit. On the other hand, in a non-cumulative deposit, the bank regularly deposits interest earned on your FD in your account. So, depending on your financial goal and stability, choose the bank that offers your chosen scheme. For example, if you want a monthly payout from your investments, you should go for the non-cumulative options. Otherwise, investing in the earned interest might be a better option. You will receive the final amount in a cumulative FD, including the successive interest earned upon maturity. Withdrawal Penalty: One of the downsides of most FDs is the penalty associated with premature withdrawal. Banks don’t like it if you break your FD midway and there is a penalty. So, you can’t know when a financial emergency can strike you. You can choose the bank that lets you withdraw money from your FD. The penalty for premature withdrawal also varies from bank to bank. Most banks charge a penalty by lowering the interest rate on FD by 0.5 to 1 per cent. Many banks and financial institutions also offer the facility of partial withdrawal. However, each bank has specific criteria you must fulfil if you are looking for premature withdrawal without a penalty. So, note that the best fixed deposit plan lets you withdraw money from your FD partially or fully without incurring a penalty. Application Process: Opening a fixed deposit account is relatively easy, and it doesn’t make sense to stand in a queue just to open an FD account. So, while looking for the best fixed deposit plan, prefer a bank with an easy application process. The application process includes the total number of forms required, the documents involved, and processing time. Moreover, you should also check if they offer an online application process. The online application process ensures quick processing time and a more straightforward application process from the comfort of your home. On a side note, prefer a bank that offers well-established customer support. Loan against FD: Banks also offer a loan against your FD. So, in case of any financial emergency, you can also get a loan against your FD. The loan sanctioned against FD could be up to 90 per cent of the FD amount. Moreover, the repayment tenure for loans against FD is up to the maximum term of the FD. Besides, the banks charge interest of 0.5 to 2 per cent above the FD interest rate. So, while choosing the best FD plan, consider the loan’s interest rate against FD. Other Factors to consider: If you want to invest your funds in the best fixed deposit plan, you should know that: Unlike corporates and NBFCs, the FD scheme offered by banks doesn’t have a rating. Besides the abovementioned factors, consider the features like maturity amount, interest after tax, and inflation-adjusted fixed deposit returns. Most financial experts suggest choosing a public-sector bank over a private bank for the safety and returns of funds. Banks have several different fixed deposit schemes, so choose the best option per your requirements. [B-02] Conclusion: Fixed deposits are the best option if you want to invest your funds in a safe and reliable scheme with assured returns. However, choosing the best fixed deposit plan requires knowing your financial requirements and ambitions. So, choose the best FD plan as per your financial goals. If you fail to get a bank of choice that offers a penalty-free withdrawal of your FD, no worries; Piramal finance is here for you. You can quickly get personal loans from Piramal Finance at a competitive interest rate. Moreover, you can also find various financial blogs here, do read them for better financial advice.
08-11-2023
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Business Loan

How to use commercial loan EMI calculator online

Working capital loans interest rates for homes are getting easier to get and cheaper to pay off. Businesses in need of a permanent location may enjoy securing financing for commercial real estate. They have reasonable prices. Borrowers looking into commercial real estate loans could enjoy more details to make an informed decision. Due to the rarity of commercial real estate loans, extra information should be supplied. It could be helpful to use a Commercial loan EMI calculator. [B-01] Why do we need commercial loan properties? Before discussing commercial Working capital loan interest rates, let’s define corporate property. Consider grouping real estate companies into one of two categories. The entrances to the office and retail zones are separate. These sites are categorised as either completed or incomplete. , purchasers of commercial property are “investors.” Certain investors get commercial real estate to establish businesses there. After such expenditures, lenders are more inclined to approve the loan. What is an EMI calculator for business loans? Submit an online application for financing of commercial vehicles. You can use the EMI calculator. It will help determine the monthly instalment required to pay off your car loan using Working capital loan interest rates. The EMI calculator requires the loan’s principal, the loan’s term or the interest rate on the working capital loan to determine the monthly payment. The calculator gives a rough figure for the monthly payment. Online EMI calculators for commercial vehicle loans are available. You can find them at different financial institutions, including banks and non-banking financing businesses. How can I calculate the monthly payments for a business loan using an EMI calculator? Do you have prior experience using EMI calculators? Currently, you may be wondering how to utilise it. The good news is that it is rather simple. Following the on-screen directions, the working capital loan interest rates for businesses will produce accurate results. Follow the logic to its conclusion. After reaching the Working capital loans interest Rate EMI calculator portal, you must enter the necessary information. This comprises the loan’s principal amount, period, and interest rate. Take the findings into account and make any necessary adjustments. Immediately after data entry, results are shown. If the default settings do not suit your needs, you may change them. After adding a new one, there is no need to wait for the results or reload the website. The following information on the EMI calculator for business loans may benefit you. Insurance firms may determine interest rates. According to the outcomes of many commercial automobile EMI calculators, the interest rate on the working capital loan must not fall below a certain threshold. Insurance firms’ Working capital loan interest rates vary, resulting in diverse computation methods. The calculator also provides additional information on repayment. When you click “calculate,” the expected EMI, the total amount of working capital loans interest rates owed, and the total amount due after the repayment term are displayed. What is a commercial real estate loan exactly? An EMI will be defined. The borrower must pay the Equated Monthly Instalment each month on the same day (EMI). A payment made to please a delinquent debt within the specified payback time. The amount of your monthly payment includes both working capital loans interest rates and principal. Even though each EMI is the same size, the working capital loan’s principal amount and interest rate vary. Loan for Property Investment Principal, working capital loans interest rates, and loan term influence the monthly payment amount. Your loan’s principal balance will increase over time, increasing your monthly EMI payment. Working capital loan EMIs are influenced by the interest rate. The monthly payments would increase the interest rate. The loan’s term is also an important factor. The longer the loan is outstanding, the smaller the monthly payment. Yet, when you begin repaying your commercial property loan, working capital loan interest rates will increase, and the principal balance will decrease. What is the operating range of the commercial property loan EMI calculator? Before using an EMI calculator for commercial property finance, it is vital to have a firm grasp of several crucial property attributes. The principal components of a commercial real estate loan are the working capital loan interest rate, total loan amount, and loan term. In particular, the following formula is utilised: E (EMI) = P R (1+R)^N / ((1+R)^N-1) Loan rates for commercial real estate are indicated by R, loan terms in months by N, and borrowed principal by P. The EMI calculator requires three essential pieces of information. Utilising a commercial property loan calculator has several advantages. A company loan The Commercial loan EMI calculator is useful in a variety of circumstances. It could assist you in selecting the path with the highest probability of success. Utilising an EMI calculator for financing commercial real estate is a quick and precise method. Using an EMI calculator for working capital loan interest rates has the following advantages: Reducing waste and enhancing productivity This method is preferable because calculating EMIs is time-intensive and error-prone. The Commercial Property Loan EMI Calculator returns results. The calculator will provide you with all pertinent information. High levels of accuracy The findings of a commercial working capital loans interest rates EMI calculator are always accurate. By estimating the EMIs, create a budget based on your income and savings. You can rely on the accuracy of the calculator. Also note that the calculator does not account for additional fees, such as insurance, which may increase your EMI payment. Set goals and create a budget The loan calculator is a significant aid for budgeting. When evaluating the objectives of your business, you should consider the impact of EMI. For this purpose, an EMI Calculator for Commercial Real Estate Loans is accessible. [B-02] Conclusion: The commercial loan EMI calculator streamlines the process into a few straightforward steps. It will provide a rough estimate to assist with budgeting. Enter the loan amount, number of years, and working capital loan interest rates to observe the real-time modification of the statistics. Once you click the “Apply Easily” button, the EMI will appear on your screen. You can change the commercial loan EMI calculator output values to meet your particular needs and financial circumstances, consult more about it at Piramal Housing Finance.
08-11-2023
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Guide

A Complete Guide to PPF (Public Provident Fund)

To have a secure future, you need to save and invest. But you must select a low-risk investment scheme where you can get good returns as well. There are many such saving schemes that you can opt for, but only a few can match the benefits of the Public Provident Fund (PPF). PPF is a savings scheme introduced by the National Savings Institute. The process of opening a PPF account as a bank PPF or as a post office PPF online is simple. You need to fill out the application form and submit it with relevant documents and an initial deposit. A PPF pension can be a great source of income after you retire from active work. It will allow you to lead a secure and comfortable life even after you stop working. But to avail the benefits of PPF, you need to learn all about the PPF post office or bank. Read on to learn more about this popular savings scheme and then make your decision. [B-01] What is PPF? PPF is a very well-known savings scheme. Any person can start a bank or post office PPF online and start saving money. The PPF account has a lock-in period of 15 years and can be extended in blocks of 5 years. There is no limit on how long you can extend the PPF post office or bank account. During this period, only partial withdrawals are allowed. That is, you cannot close your PPF during the mandatory lock-in period. The minimum duration for PPF is 15 years, and you must invest a minimum of INR 500 per year to keep this account active. While complete withdrawal is not allowed, you can get a loan against your PPF to meet your urgent needs. The maximum amount that you can save in a PPF account in a year is INR 1.50 lakh. The interest rate on PPF is set by the government every year. As it is fixed by the government, it carries a very low risk. Even if your profits are limited, the safety net is very useful In fact, you can plan to get the PPF pension with full certainty. On top of that, it is also eligible for tax benefits under Section 80C of the Income Tax Act, and the interest you earn on PPF is also tax-free, as is the corpus you receive after closing the account. Hence, the benefits are enormous. Key Aspects of PPF Post Office or Bank Here are some of the key aspects of the PPF account that you must know. This will help you make an informed decision: In any given year, i.e., from April 1 to March 31, you can deposit a maximum of INR 1.50 lakh. The least amount you must deposit is INR 500. You can deposit this amount as a lump sum or in installments, as you prefer. The total deposit for the year cannot exceed INR 1.50 lakh. If you do not make any deposits in a year, you will have to deposit at least INR 500 for every missed year to make the account regular. After the 7th year, you can withdraw some money from your PPF at the post office or bank. But you can only draw the money up to a certain limit, i.e., a partial withdrawal. You cannot withdraw any funds from your account before the seventh year. You can get a loan against your PPF account to raise money for any urgent needs. This option becomes available after the third year of opening a PPF post office or bank account. But this option is available to you only until the sixth year. Thereafter, you cannot take a loan against the PPF. Your bank or post office PPF online account can be closed after 15 years from the start of the account. For example, if you started your PPF in 2007, it would close in 2022. After the account is closed, you will receive the entire amount in your bank or post office savings account. This entire corpus is tax-free. This means the money you invest in the first year will be invested for 15 years, while the money you invest in the 14th year will be there for one year only. You have the option to extend the PPF account for as long as you want in a block of 5 years. During this extension, you may or may not make any new deposits in the account. The amount that is already in the account will earn returns based on the rate of interest given by the government. There is no upper limit on the number of extensions you can take. Under Section 80C of the Income Tax Act, the money you deposit in a PPF account is good for tax benefits. You can deposit up to INR 1.50 lakhs in this account, and it will all be eligible for tax exemption. The interest you earn during this period and the corpus you receive on maturity are both tax-free. The money you have in your PPF post office or bank account is safe from attachment under any court order or decree. As a result, if you have any legal disputes, no authority can seize this money. [B-02] A PPF pension is a good source of income after you retire. But to ensure this steady income, you need to start your bank or post office PPF online or offline. To learn more about PPF and its benefits, visit Piramal Finance. They offer great articles and blogs to help you improve your finance skills and make informed decisions.
08-11-2023
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