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How To Withdraw PF Amount Online Using UAN?

Provident fund, or PF for short, is a savings-cum-retirement program for employees of a qualifying company. After retirement, employees can rely on the fund’s corpus for their expenses. Employees must contribute 12% of their base pay to this fund each month as per the EPF rules. The company makes an equal contribution to the employee’s PF account. Every year, interest is earned on the funds in EPF accounts. When employees retire, they can withdraw their whole EPF balance. Several EPF rules related to withdrawals from PF accounts have been updated in 2022. You can withdraw funds from your EPF account without your employer’s consent. Read on to learn more about the process for making early withdrawals from an EPF account if you meet the given rules. When Can a Person Withdraw From an EPF? Full Withdrawal EPF can only be completely withdrawn in one of the following two situations: – When a person retires; When a person is jobless for more than two months. In this situation, the people need to obtain an attestation from a gazetted officer to withdraw money. If individuals change jobs before their unemployment time of two months or longer expires, they are not able to withdraw their entire EPF balance (i.e., the interim period between changing jobs). Partial Retraction Only certain conditions apply, and partial withdrawals of EPF balances need the production of documentary proof. Condition TenureLimitation of withdrawal amountWithdrawal Eligibility Construction/purchase of a houseService of 5 yrs.The withdrawal amount for constructing or purchasing a house is limited to 24 times the monthly salary for purchasing or 36 times in case of purchase and construction.Only the account holder or their spouse are eligible to apply for a withdrawal.Wedding Service for 7 yrs.50% of the total employee’s contribution with interest is the sum for withdrawal.The account holder, their blood siblings or children can apply for withdrawal.Medical emergencyNo limitation Mentioned. six times their monthly salary or employee’s Contribution with interest, whichever of the two is lower in amount.The account holder, their Spouse /parents or children can apply for withdrawal.Repaying home loanServices for 3 yrs.90% of the amount mentioned on the loan with interest can be withdrawnOnly the account holder or their spouse is allowed to apply for a withdrawalRenovation of houseService of 5 yrs.50% of the employee’s contribution with interest is approved for withdrawal.Only the account holder or their spouse can apply for a withdrawal.Higher education of self or post matriculation of childService of at least 7 yrs.Up to 50% of employees’ contributions to their EPF fund.Only the account holder can withdraw this amount. Universal Account Numbers (UANs) have been assigned by EPF and are required for all employees covered by the PF Act. The EPF account of the employee would be connected to the UAN. There is no need to submit an EPF transfer application while changing jobs. The UAN is portable for the duration of an employee’s career. Conditions for PF Account Withdrawals Based on their needs, a person can withdraw all of the PF money or only a portion of it. The person may be retired or have been jobless for longer than two months. After that, the money can be taken out while awaiting attestation from a gazetted office. On the other hand, a partial withdrawal must satisfy a number of requirements. With the exception of pre-retirement withdrawals, where the employee must be at least 54 years old, all withdrawals must meet a minimum of 5 to 7 years. An individual can withdraw money for education, land or house purchase, home loan repayments, or treating COVID-19. Steps to apply for PF withdrawal through UAN You need to sign in to the UAN Member Portal to check the status of your application. Then select the “Track Claim Status” option under “Online Services” in the drop-down menu. No reference is required in order to verify your status. On the screen, it will be seen. EPF withdrawal process online You must ensure that your UAN is active and linked to your KYC in order to submit an online PF withdrawal application (Aadhaar, bank account, and PAN). If you satisfy these rules, take the actions listed below to draw your PF balance. Visit the UAN Member Portal in step one. Use your UAN, password, and captcha to log in. Select “Claim” under the “Online Services” tab (Form-31, 19, 10C & 10D). Your information is shown on the following screen (basic details, KYC information, and other service information). The last four digits of your bank account number are required. Enter it, then select “Verify.” To sign the undertaking certificate, select “Yes.” Then select “Proceed for Online Claim” from the menu. Choose the claim you want to submit in the claim form’s “I Want To Apply For” area, such as a full EPF settlement, a partial EPF withdrawal, or a pension withdrawal. Options that a member is not eligible for will not be presented to them. For example, you won’t see the pension withdrawal service option in the menu if you are not eligible for it. Choose “PF Advance (Form 31)” in step 6 to withdraw your PF funds. Include the purpose of the advance, the necessary sum, and the address of the employee. Submit your application in the final step. For the purpose for which you have completed the form, you might be needed to send scanned copies of your supporting documentation. Following the employer’s approval of your application, you receive the requested amount in your bank account. The process of getting the balance credited to your bank account normally takes 15 to 20 days. However, in 2021, instead of the prior obligation of processing the claims within 20 days, the government permitted the Ministry of Labour and Employment to shorten the claim settlement cycle to 3 days. You can submit Form 15G to avoid tax deductions if you are withdrawing the money before five years of service and your total income is less than Rs. 2.5 lakh. How often am I allowed to withdraw my PF? The number of times you may withdraw from your PF is determined on the withdrawal’s objectives: A maximum of three times you can withdraw from PF for post-matriculation education and marriage. When buying or building a home, you can only claim it once. Before retiring, you can always claim it for medical emergencies. Its potential is limitless. How much time does a PF claim require? To resolve the PF claim or release the PF amount, it normally takes 20 days. However, the Ministry of Labour and Employment has given EPFO the ability to shorten the claim settlement cycle to 3 days thanks to the UAN. Final verdict EPF provides retirement benefits, to sum up. You may, however, partially withdraw it in some circumstances. You have two options for submitting your withdrawal application: online using the EPFO portal, or offline. You can transfer or withdraw your PF balance, settle your accrued EPF funds, or take a partial or advance withdrawal from your EPF account using the suitable EPF forms. To prevent your PF withdrawal form from being rejected, make sure you meet all the conditions for submitting the forms. For more details related to policies and applications for PF funds, get in touch with the expertise of financial consultants through Piramal Finance and to know the latest updates.
08-11-2023
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Personal Loan

Need Money For Diwali Shopping? Personal Loan And Credit Cards Can Help You Out

The festival of Diwali celebrates the victory of good over evil. Some folks even anticipate home improvement projects. Every aspect of celebrating Diwali, from buying new outfits and presents to planning family get-togethers, is drawn to the holiday like a magnet. The extra cash from a personal loan might help you stick to your Diwali spending plan and cover any unexpected costs that crop up. Here, we will learn how a credit loan, personal loan, or festive loan can help you plan your Diwali shopping. But first, here are some of the common expenses incurred during Diwali. [B-01] 1. Buying gold Acquiring gold during Dhanteras is crucial. Many Indians believe that this is a good omen. This plays a significant role in the seasonal rise in gold prices. If you want to put your money into gold, you may purchase it in the form of currency, like bars and coins, or as jewellery. The current gold prices would support taking out a personal loan around Diwali. 2. Buying vehicles Around Diwali, many individuals consider purchasing brand-new vehicles. Spending all your money on an item on a vehicle at once is not a smart choice. Take a look at the specials offered by auto parts and accessory stores during the Diwali run-up. Rather than dipping into your savings, you should immediately get a personal loan to cover your current financial obligations. You may bring your dream automobile home for Diwali by taking out a personal loan. 3. Purchasing furniture There is a widespread desire to update one’s home decor by purchasing new furnishings. Whether it’s a new washing machine, dishwasher, or smart TV, now is the time to get them all in time for Diwali. Many people make significant changes to their homes, such as painting and repairs. The abundance of accessible funds means that now is a great time to make any necessary home improvements, including repairs and furnishings. The financial stress you’ve been feeling this year might be alleviated with the help of personal loan offers for Diwali. 4. Buying Electronics Home products like air conditioners, vacuum cleaners, and digital single-lens reflex cameras may be purchased at significant discounts during Diwali sales. Since these things are costly, it makes sense to put off the purchase until you are financially sound. As Diwali approaches, you can take advantage of the holiday’s associated sales and specials. Borrow a personal loan or a festive loan before Diwali to buy all the cool tech you need. 5. To Travel for Leisure Purposes To soothe your anxious mind and body over the Diwali season, take a vacation. The time leading up to the holidays is an excellent period to book a trip. Spend Diwali with the family in a resort in the highlands or on the beach this year. Get a personal loan so you can take the vacation you’ve always wanted without worrying about finances. Top Online Loan Applications for Individuals During Diwali House enhancement Diwali is the time of year when people undertake major house improvement projects in India. It is important to us Indians that our homes look their best for this special event. However, designing or remodelling a house is a very costly endeavour. Home renovation loans are widely provided by lenders. It’s not uncommon to get a generous offer for a personal loan during Diwali. Paint your house For most of us, painting our homes is more of a necessity than a luxury. Most people wait until the last minute to paint their walls to be ready for Diwali. As a result, it becomes expensive to hire painters. Additionally, if you want a custom wall painting, expect to pay twice as much. A personal loan is always an option if you’re considering painting your walls but are worried about the cost. Once approved, the money is instantly credited to your account. Gifting Diwali is synonymous with gifting. Gifts like dresses, chocolates, or dried fruits are commonly exchanged. However, at times, you may want to gift something more expensive, such as gold or diamond jewellery. By applying for a festive loan online, you may soon have enough money to resume your shopping spree. Family Trip Travel fares soar during the period leading up to Diwali. Therefore, planning a journey back home as soon as possible is essential. If you wish to visit your family, flight or train ticket costs can set you back. However, if you have a credit card or a personal loan, you can go home without worrying about the rising fares. [B-02] In conclusion Financial planners may advise borrowers to take out a personal loan to cover their Diwali costs. Personal loans have a longer repayment duration (5 years), which helps keep monthly payments down. Use an online personal loan EMI calculator to determine your monthly payment before committing to a loan. You can also choose to apply for a credit card or a festive loan to meet your expenses. In addition, you are free to repay the loan whenever you choose, with no additional fees. No collateral is needed for a personal loan, so you may keep your valuables safe. For more information, you can head to the Piramal Finance website, and read blogs on related topics.
08-11-2023
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Business Loan

Secured Business Loan Interest Rates – Check Current Rates & Apply

Starting your own business can be an exciting adventure but it can also be filled with uncertainty and worry. One of the most important steps you will have to take when setting up your company is securing the right funding to get things moving as smoothly as possible. [B-01] Depending on your idea and your plans, this might mean loans from banks or other financial institutions or venture capital from private investors. Whichever option you choose, you will want to know what you are getting into before you start spending time and money. What is a secured business loan? A secured business loan is a loan that is backed by collateral. This type of loan is usually more expensive than other types of loans, but it can be a good option if you need to borrow more money than you can afford. The collateral could be your home, land, or some other valuable asset or something worth at least as much as you want to borrow. If the borrower does not make payments on the loan, the lender can sell the property to recoup their investment. Secured business loans are often used by companies with bad credit because they don’t require a credit score check. They can also be helpful for people who want to consolidate debt or have a low credit score. You will have to pay higher interest rates with this type of loan and the minimum amount that you can take out at once is $5,000-25,000 depending on the company you use. Types of Secured Loans There are two types of secured business loans you can apply for. They are Personal lines of credit: These loans have lower interest rates than home equity loans, but they have higher minimums. Home equity loans: They require you to own a home to apply, but they offer higher interest rates than personal lines of credit. If your home has increased in value since it was purchased, then this may be a better option for you. The downside is that if the value of your property declines, then so does the amount of money available through the loan. What are the interest rates for a secured business loan? Secured loans are backed by collateral. The interest rates can vary depending on the amount you borrow, your credit score, whether or not you have a personal guarantee, and how long you need to repay the loan. The interest rates for a secured business loan vary, but they typically range from 6% – 12%. You must know what your borrowing limit is before applying for a loan so you can make sure the interest rate will be low enough that it won’t put too much of a strain on your finances. Most banks offer loans up to $250,000. This covers most small businesses. If you are looking for more than $250,000, then you will need to go through a private lender. Private lenders usually have higher interest rates because they are taking more risks. Many online resources allow you to get an estimate of how much money you qualify for without even leaving your home. How do I apply for a secured business loan? The first step is filling out the application form on a secured business loan company’s website. The application can be completed online and takes about 10 minutes. You will need to provide some personal information, like your name, address, phone number, employer details, income information, credit score and more. You may also need to provide additional documents that prove your eligibility for a secured business loan. This could include tax returns or bank statements for the last 12 months. After submitting your application, you should expect to hear back from the lender within 24 hours if you are approved. If you are denied, it should take about three days for the lender to contact you with an explanation of why they declined your request. What are the benefits of a secured business loan? When you apply for a secured business loan, you are essentially borrowing money from a bank by using your existing assets as collateral. The best thing about secured business loans is that they often have much more favourable interest rates than unsecured business loans. This is because the bank feels more confident in lending to you since it can repossess your property if you don’t pay off the loan. Also, secured business loans are typically cheaper than unsecured ones because of the lower risks associated with them. However, these loans usually require a higher credit score. If you are applying for a secured business loan, make sure that you have an excellent credit history to get the most favourable rate possible. Where to Find Secured Loans There are many places where you can find secured business loans. You can use your assets as collateral, which is one of the key aspects of a secured loan. Secured loans require a lower down payment than unsecured loans, making them more attractive for borrowers with less available cash. Use these resources to learn about business loan interest rates and how to apply for a secured loan. Things to keep in mind before getting secured loans: Before getting a secured business loan, it is important to know that interest rates can vary. You should also consider the term of your loan (i.e. how long you will be paying back the loan) as well as any associated fees for the service. Nowadays online business loans are also available. Instant approval and fast dispersal features are provided by top banks as well. It is also wise to read all the terms and conditions of the contract before signing anything. Finally, make sure to do some research on what other types of loans are available from different lenders so that you can compare costs and terms before settling on one option. [B-02] Conclusion In conclusion, if you have a business idea but don’t know where to start, a secured business loan is a great way to get your new business off the ground. Secured loans are easier to get, they have lower interest rates, and they require little-to-no collateral. If you want more information about how you can apply for one of these loans, contact your local bank or credit union. Explore more finance articles on Piramal Finance website.
08-11-2023
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How To?

How to Withdraw PF and EPF Online After Leaving the Job

There is a lot for you to do while leaving a job, and withdrawing the provident fund is among the most important things to do. Withdrawing the PF online is one of the simplest and fastest ways in which you can do the task. Here we have discussed how one can withdraw their EPF and PF online in a few simple steps. Go through the article to find the best way to do so. [B-01] What is a provident fund? All of us hope to achieve financial security and stability after retirement. For this, we get involved in different schemes and financial investments. A provident fund is one of the best financial schemes that can easily help you and your family attain a better life after you retire. According to the Employee Provident Fund scheme, it will deduct a certain part of an employee’s income every month, and the employee can withdraw this amount at the end of their job or retirement. One must remember that the provident fund is a part of one’s income and not something extra given by a specific company or organisation. However, the Employees’ Provident Fund Organization (EPFO) regulates it. How to Withdraw Provident Funds There are two ways in which a person can withdraw his provident fund. Physical Withdrawal Online Withdrawal To claim the amount by physical method, one must visit the EPFO office and go through the entire process required for the withdrawal. Regarding online withdrawal, one needs to follow the steps mentioned below: The EPFO now provides most of its services online, which has made claiming the PF online possible. The process’s main benefit is that it has made it very short and less time-consuming. On the other hand, the comfort of the one who is withdrawing the PF online has also increased due to online facilities. Requirements for withdrawing PF online To withdraw the amount through the online EPF portal, numerous conditions must be met. The Universal Account Number (UAN) must be active when you apply to withdraw the PF online. There is a mobile number to which the activated UAN is linked. To claim the PF, one needs to have that mobile number with them. The UAN must also be linked to Know Your Customer. That means it should be linked with your Aadhar card, PAN card, bank details, and, most importantly, the IFSC code. If you have fulfilled all the requirements, you can directly proceed to the next steps. Before going any further, make sure you have all the proper login details that will be needed. Steps to apply for withdrawal of PF online Visit the main page of the UAN portal. On the screen, one can appreciate the log-in option. Click on that for the entry bar to open. You will be required to enter your UAN and password. Enter the Ctachpa and directly click the “sign in” option. You can always go to the Manage section to check where your KYC is linked. You can get the status of all your linked documents and cards on the Manage tab. Once you finish the initial checking of the KYC, go to the Claim (Form-31, 19-10C, and 10D) section on the tab showing online services. Once you have entered the main website after logging in, all the customer’s details will be shown on the screen. There will be a special section showing “Verify your Account Number.” This step is crucial as the money transaction will be linked to the account. Enter the bank account number and verify it. Next in the process, all you need to do is agree to the terms and conditions, sign the main certificate with your bank account details and more. All of the fundamental steps have been completed, and this section will explain how to access the EPF via the internet. Select “Proceed with Online Claim.” You will be required to choose from the options of full EPF settlement, EPF part or partial withdrawal, or pension and its related withdrawal. You will find these under the “I want to apply” tab. There might be a case where the option is not available on the page. This can mean you have a plan that doesn’t cover such facilities. Next, you must find the “PF Advance” (Form 31). In this section, one needs to explain why the fund is being withdrawn. You should mention the main reason for taking the fund in advance here in the form. If you are claiming the fund after retirement, you will have to choose a different form. In the next step, you will be required to upload different certificates. Most of them are going to the ones related to the provident fund form. The certificates are enough to prove your authenticity. The application will be checked and approved by the higher authorities. Normally, the money will take more than 15 working days to reach your account. Forms Used in Withdrawing PF Online We have mentioned above some of the most commonly used forms to claim EPF online. EPF Form 19 This is a basic two-page form that is needed to make the final settlement in cases of PF withdrawal. The first page of the form has all the basic information about the person who is going to withdraw. It will display the person’s name, the mother’s name, the father’s name, the spouse’s name, the contact number, and more of this kind of information. The dates of joining and leaving are also mentioned. The first part lists all the details regarding the account number, UAN, and PAN. On the second page, one can find a special advance receipt with a stamp that can be used by people looking for a PF check. EPF Form 31 The EPF Form 31 is a rarely used form, and it is used in cases of partial claims or even if one wants an advance provident fund. Benefits of Withdrawing Your PF Online Less time-consuming The entire process is very easy and very fast. You don’t need to run through the EPF office just to get your papers approved. Even the form filing is very quick, and no extra certifications are needed to go through the process to get the provident fund. Comfortable All you need is your laptop and a good chair to complete the form and claim the money. It increases the comfort of the one who is withdrawing. [B-02] Conclusion Withdrawing PF online has become very easy these days. All you need to do is follow the steps mentioned above. Filling up the forms and checking the criteria are the main facts that need to be taken care of. To know more, you can connect with Piramal Finance and open your PF account easily.
08-11-2023
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Know More

Personal Finance Lessons You Should Teach Your Child

Are you looking for personal financial lessons that you can teach your child? But why is it important to teach your kids about the value of money? Our childhoods have a big effect on how we spend money as adults. Not only do our spending habits, saving, and investing affect our own lives, but they also affect the financial choices that our children will make now and in the future. Let’s learn more about it below. [B-01] What is Personal Finance? Personal financial planning includes saving for future needs, getting ready for retirement, and paying for a child’s college education. Whether you can reach your goals with the money you have depends on several things, such as how much you make, how much you spend, what you need to live, and what your goals are. Why Is it Important To Be Good With Money? You can talk about your own money so you can make the most of what you earn and save. If you know how to handle your money, you can tell the difference between sound financial advice and personal finance. There aren’t many formal ways to learn the basics of managing your own money, so it’s important to find other ways to learn, like free articles, classes, blogs, or podcasts. Budgeting, setting up an emergency fund, getting rid of debt, using credit cards responsibly, saving for retirement, and other ways to plan your finances are all part of the new idea of “smart personal finance.” Important Personal Finance Lessons To Teach Your Kids Personal finance and money management cannot be taught in a day. It should be systematically and gradually introduced from childhood. You can help your kid understand the importance of money and, with time, tell them how to manage it. This would not only help them be confident about money dealings, but also keep them away from mistakes that their elders committed. In this article, we will discuss some crucial points which can help you inculcate personal financial planning habits in your kids. Teach The Basics Of Banking Children’s banking experiences can serve as an introduction to the world of personal finance. Children can open savings accounts at most major banks. Interacting with the bank will teach kids about saving money, using a debit card, and other banking basics. Fix Monthly Allowance For Your Kid Your child needs a set monthly allowance, and you need to monitor their spending closely. Don’t hesitate to give them extra money or a special present if they use their allowance wisely. In addition, a monthly stipend instils a sense of responsibility and accountability in a child by exposing them to basic personal finance management early on. Teach The Importance Of Saving And Investments When a child asks for money to buy a toy, book, or another item, the best thing to say is that they should save their allowance until they can buy it on their own. From this, they’ll learn how important it is to save money. In the same way, teach them the benefits of investing for long-term growth in their personal financial planning. You can help them set up a recurring deposit account if you want to share the pleasure of seeing their money grow. Educate About Spending And Debt It’s just as vital to make smart purchases as it is to put money away for a rainy day. Help your kid learn responsible spending habits. Young people need to learn the value of keeping a budget and how to avoid frivolous purchases. Instruct your child about the importance of planning ahead and having personal finance goals. They would become more aware of the need for budgeting and the steps necessary to get out of debt. Unnecessary debt can significantly strain one’s personal finance resources, so it’s vital to instruct one’s offspring on how to raise money and prevent incurring debt. Young people should also be taught the value of being responsible with their money and making timely payments on debts. One way to demonstrate this is to borrow money from them occasionally and pay it back with interest within a specified period of time. Similarly, you should introduce the concept of loans to a child when they make a purchase request that exceeds their monthly allowance. Give them some spending money and show them how to budget it. They will better appreciate the practical implications of borrowing and lending. [B-02] Summing-up This article aims to give you a thorough look at how important it is to teach your kids about personal financial planning. Sharing what you’ve learned about money with your kids is just one way to teach them about money. The point of teaching them about the value of money management must also be made clear. And when teaching children important lessons about personal finance, one must be open and honest about their own financial beliefs. Also, visit Piramal Finance for more in-depth, educational articles.
08-11-2023
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Home Loan

List of Important Documents Required for a Home Loan

Looking for a home loan? Are you able to afford a home loan? When are you applying for a business loan? Lenders will ask for documentation with your mortgage application. These demonstrate things like your income and obligations. Depending on your circumstances, you may need specific documents for a home loan. For instance, a self-employed person will probably need to submit different paperwork than a person who works for a firm. Todd Huettner, the owner of Huettner Capital, a residential and commercial real estate lender, says a lender may get a fair idea of your chances of being accepted by looking at your most recent pay stubs, business loan interest rate, bank statements, W-2 forms, and tax returns, though the precise forms may differ. [B-01] Huettner claims that he can accurately analyse the borrower using these materials. With a high degree of assurance, he argues, “These documents allow me to inform (borrowers) what they can and cannot do.” List of Important Documents Here is a list of seven important documents required when applying for a home loan, depending on your particular financial position. 1. Tax returns Lenders of business loan interest rate want the whole picture of your financial status. You’ll probably be required to sign Form 4506-T. It authorises the lender to ask the IRS for a copy of your tax returns. Tax returns from the past one to two years are typically required by lenders. This is to ensure that there are no significant variations in your annual income from year to year. This is also to ensure that it is consistent with the reported earnings on your pay stubs. 2. Paystubs, W-2s, or other income documentation Your most recent pay stubs could be requested by lenders. Pay stubs and your tax returns can both help them understand your current financial situation and your overall financial health. You may be required to provide your lender with verification through 1099 forms, direct deposits, or other methods if you are self-employed or have additional sources of income (such as child support). 3. Bank records and other resources Lenders may want to look at your bank statements and other assets when determining your risk profile. This can contain both your savings and insurance policies, such as life insurance. These documents are often required by lenders to confirm that you have several months’ worth of mortgage payments in reserve in your account in case of an emergency. Additionally, they make sure that your down payment has been in your account for a minimum of a few months and has not appeared suddenly. 4. Credit standing Lenders frequently obtain your credit record with your verbal or written consent to evaluate you as a borrower. According to Atlanta real estate agent Bruce Ailion, you might be required to explain any errors found on your credit report. A previous short sale or a foreclosure are examples of faults. According to Ailion, “you should be ready to draught a statement that clarifies bad entries on your credit report.” This helps a lender determine the level of risk you pose. In contrast to regular offences, lenders may view one-time unavoidable circumstances differently. 5. Gift cards Your family and friends might lend you money to help you purchase a home. If so, you must offer written documentation proving the funds are a gift and not a loan. Both their relationship to you and the value of the present should be specified in the documentation. 6. A photo ID Most likely, you’ll have to present a photo ID, such as a driver’s license. This is merely to demonstrate that you are who you say you are. 7. Renting history Many lenders require proof that you can make on-time payments from buyers who don’t currently own a property. They may request a year’s worth of cancelled rent cheques (check that your landlord has cashed them). They may also require proof from your landlord that you paid your rent on time. If you don’t have a long credit history, it’s extremely vital to consider your rental history. Next steps: Are you able to afford a home loan? The objective of your lender is to evaluate you as a borrower and make sure you can make your payments on schedule. These are some useful questions to ask yourself if you plan to buy a home soon. This will help you get ready for the home-buying process. ● How much can you afford to put down? A larger down payment is frequently interpreted by lenders as a sign of your financial stability. ● What is your debt-to-income ratio? It is likely necessary to keep this level under 43%. ● How much of a monthly mortgage payment can you comfortably make? ● Do you have the resources to pay for closing costs such as prepaid property taxes or an appraisal? Summing-up: Our goal is to provide you with the list of documents required for a home loan. You must submit specific documentation with your application, as requested by the lender. Your loan application won’t be handled if these supporting documents aren’t provided. Additionally, lenders check the documents you submit once you submit them before approving your application. To ensure quick processing and approval, you must be aware of the paperwork needed to apply for a business loan interest rate. [B-02] The list of documents needed to process your home loan application is typically nearly uniform among lenders. It consists of documentation related to income, KYC, property, etc. However, depending on several criteria, the above list of documents needed may still differ from one lender to another. Investment Reliable offers unbiased information and assessments on trading, investing, and finance but does not provide financial advice. Customers should always conduct their research. Additionally, Piramal Finance has more in-depth, educational, financial-related articles.
08-11-2023
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How To?

PPF Interest Rate: How to Calculate Returns

Saving money is the starting point for any financial plan. You have a wide variety of savings accounts available. However, you should prioritise those that provide substantial returns without the associated risk. A personal retirement fund (PPF) account is one of the most common additions. Due to the difficulty in estimating the PPF return without a PPF calculator, it is recommended that you use one. Online PPF calculators work by putting in inputs (investment amount, starting balance, and interest rate) to determine the total value of your investment after a particular number of years. Public Provident Fund PPF exists solely to spur savings. It aims to create a fund with good returns and a tax rebate and help one build a retirement corpus. According to recent data, the rate of interest for PPF is 7.1%. The Indian government has pledged PPF to spur the habit of saving, so there’s almost no danger in funding it. Moreover, its interest, principal, and balance are exempted from tax. How Does a PPF Calculator Work? If you have a PPF, then you must be curious to know the amount of funds deposited to date. In the past, this computation was more complex, and an expert was needed to know the balance and study the results. The PPF calculator expedites several calculations. It considers changing interest rates, which occur every three months. Using the input you provide, the result is calculated. It is also very important to invest in something. When a deposit is made on the first day of the month, interest is applied for the entire fiscal year. The calculator will account for the lower interest rate that applies to deposits made after the fifth of the month. The Best Way to Utilize the PPF Calculator PPF calculators are helpful financial tools that help you calculate PPF returns. The PPF calculator is accessible in several formats. It’s possible that you can come across some of the following types of modes: Fixed and Variable Amounts for the Whole Year Fixed and Variable Amount for the whole month How to Calculate Expected Returns from PPF? To calculate the PPF return, there is a formula that gives the correct result. The formula is as follows : A = P [({(1+i) ^n}-1)/i] Where, The amount of Maturity is denoted by A The amount of principal invested is denoted by P The rate of interest is denoted by i The tenure for which the amount in PPF is invested is denoted by n Tax Benefits of Investing in PPF PPF falls under the category of EEE, which means “thrice exempt” from being taxed. Any individual saving under PPF can claim a full tax rebate under Section 80C of the Income Tax Act. But remember, you can’t put more than Rs. 1.5 lakh into your PPF in a single fiscal year. The collected principal plus any interest earned are also tax-free at the time of withdrawal. You can’t get the money out of your PPF account until it matures. However, a PPF account holder can be changed. Be mindful, though, that a PPF account cannot be terminated before its tenure. The nominee can only request that the account be closed if the account holder dies. Benefits of Using a PPF Calculator Using a PPF calculator is very easy. Especially for first-time investors, it can be very useful. If you are starting now, you can benefit greatly from making use of a free online PPF calculator to estimate the ROI. Calculating how much you should invest each year to meet your financial goals is simplified. Because the PPF calculator is automated, you may use it to better plan your tax-saving investment and make the most of your money. Post Office PPF Account A post office PPF account is similar to a PPF account. The features of a post office PPF account have the following attributes: In a given fiscal year, you can put up to Rs. 1.5 lakh into your PPF account. A post office PPF can only receive a maximum of 12 annual deposits. The money you put into your PPF, any income you make, and any money you withdraw at maturity are all exempt from taxes because it is an EEE (EEE) investment. You must deposit at least Rs. 500 per year to keep PPF active. Post office PPF accounts accrue interest on a yearly basis, which is compounded and distributed on March 31 of each year. Is a PPF Account preferred at a bank or a post office? The PPF benefits can be reaped at both banks and post offices. The features of the PPF plans are the same whether you create an account at a bank or a post office. Both options for creating an account can be considered secure and user-friendly. It’s important to remember that, just like banks, post offices now provide members with internet access to their PPF and other government savings program accounts. Steps to Use the PPF Calculator: The first step is to input the amount of the annual investment or adjust the slider for the desired amount Tenure of your investment After all the details are put in, the PPFO calculator will give you details like interest levied, total funding, and the value at the time of maturity. Benefits of Using the Postal PPF Calculator It provides an idea of what you will receive in exchange for your funding. It assists in analysing the net investment for any given financial year. The PPF calculator at the Post Office helps investors get an estimate of their ROI quickly. Points to Note: PPF Calculation You must note a few major points while calculating PPF. They are as follows : The highest amount you can invest annually is Rs. 1.5 lakh. An annual minimum of Rs. 500 is required to open a PPF account. The compounding of interest occurs annually at the end of the fiscal year. The maturity period is 15 years, and the proceeds are completely tax-free. The Finance Ministry may announce quarterly changes to the PPF interest rate, which is subject to change every quarter. [B-02] Conclusion The PPF is a convenient way to save for retirement. It requires little effort on the part of the investor. It’s the safest form of investment. It’s a good retirement plan or other long-term funding source. It is preferred because of the tax relief under Sec. 80C. Even if you know the formula, manually calculating is tedious. You’ll be making multiple contributions over time. As a result, a PPF calculator available online can be a great help and ease the whole process.
08-11-2023
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Business Loan

List of Documents Required For Small Business Loan

List of Documents Required For Small Business Loan A list of questions comes to one’s mind while applying for a small business loan. What paperwork is required to obtain a business loan? What kind of paperwork is needed for a business loan? How long ought the business loan processing to take? A company loan is a straightforward approach to getting money to handle any financial issues. The funds secured in the form of a business loan may be utilised for a variety of purposes, including business expansion, inventory maintenance, office rent, staff recruiting, raw material purchases, and new venture startup. There are a lot of banks and non-bank finance companies (NBFCs) that offer loans to small businesses loans with easy repayment terms and low-interest rates. But each lender has different requirements for who can get a loan and what they can lend. To get a business loan, borrowers must also show several other documents. [B-01] When you apply for a loan at a bank or NBFC, you have to fill out a lot of paperwork. Loan applications could be delayed or even turned down if some documents are missing or if they have the wrong information. It is wise to be aware of the list of supporting documentation required for small business loans from banks and NBFCs before applying. The majority of the paperwork is standard, while the exact list may vary from lender to lender. 1. Common documents. Even though different types of businesses and business loans require different sets of documents, some documents don’t change. These have “Know Your Customer” documents like proof of a company’s existence, incorporation certificates, partnership agreements, etc. PAN cards are another thing that all types of small business loans need. The company’s PAN card, as well as the cards of its owners, partners, and other important people, must be turned in. The proof of address documents come in third on the list of documents that people often need. Again, you will have to show proof of the addresses of both the business and its owners. 2. Bank statements. When applying for an SME business loan, bank statements are a crucial component of your application. If you are a first-time borrower, you will often need to furnish statements dating back the previous six months. However, if your lender knows you have a history of borrowing from them, they might ask for statements going back up to a year. 3. Documents for SMEs These typically include the paperwork required for sales tax, VAT, and service tax registration. plus exercise. Additionally, you will need to submit the company entity’s IT returns. and the company’s utility expenses. Additionally, if necessary, you might need to provide things like the Memorandum and Articles of Association, the Bill for Municipal Taxes, etc. 4. Self-employed or Proprietor Documents The first item on the list is evidence of a sole proprietorship’s identity. The next step is to provide your PAN card, IT returns, and utility bills in the business’s name. You must present one of the following as identification: a passport, a driver’s license, or a PAN card. The last requirement is address verification, which can be done with a driver’s license, passport, or voter ID card. 5. Financial Documents Small business loans, both secured and unsecured, need proof of income like tax returns and recent bank statements. For some unsecured loans, having proof that a business is still running can be helpful. Lenders can figure out how well a business loan has done by looking at tax returns and income calculations from previous years. Some banks also need a certified accountant’s audited balance sheet and profit and loss statements from the business’s last two years. The goal of the balance sheet is to give a clear picture of the company’s assets and liabilities. Lenders sometimes ask how loans will be used for business loan plans. If needed, applicants must include supporting documents like budgets and projections of future cash flows. To do this, borrowers need to think about two possible futures: the first must show how a business will do without more money, and the second must show how the loan will help the business grow. Additionally, borrowers looking for loans without collateral might need to provide the following documents: • A letter from their bank about authorising an overdraft • Partnership Agreement • A certificate of incorporation and a memorandum of association or articles of association • Audit reports for taxes The Different Types Of Small Businesses: A Private Limited Company 1. A private limited company is a privately • Small businesses where an owner’s responsibility is restricted to their shares • The maximum number of stockholders is 50. • Shareholders are prohibited from transferring or selling their shares without first making them available to other shareholders for acquisition. • Additionally, the stockholders are prohibited from selling their shares to the public. 2. Proprietorship businesses • In a sole proprietorship, the owner is solely accountable for the operation and its financial success. • No intervention from any other outside party is present. • The proprietor is responsible for paying taxes on the income. • Unless the receipts reach a certain threshold, there is no audit for such a business. 3. Self-employed professionals and self-employed non-professionals • Professionals who work for themselves as independent contractors are entrepreneurs. They take on the danger and expense of their work. • Self-employed non-professionals can work as store owners, artisans, etc. They either put their own money or money obtained through a business loan into their venture. [B-02] Summing-up: For a business loan to be approved, loan applications must be properly filled out, and KYC documents and financial statements must be provided as proof. Banks and NBFCs can also get the applicants’ signatures on bank statement verification forms so they can check the signatures. Before applying for a small business loan, borrowers must have all of the necessary financial documents. This is true no matter what kind of loan they want. The paperwork you need to get a loan can vary from one bank to the next. So going to a trustworthy lender like IIFL Finance can make the process easier. Also, visit Piramal Finance for more in-depth educational articles.
08-11-2023
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How To?

How To Withdraw Your PF Using The Pandemic Option?

How to Withdraw PF? How it can help me? The 1952 EPF Scheme has provisions for participants to get advances if the government declares a calamity or epidemic. Employees will be able to take care of crucial financial concerns with the aid of the advance during the lockdown.Employee Provident Fund (EPF) donations to non-profits have decreased from 12% to 10% in recent years. The interest rate on EPF contributions will be 8.5% for the fiscal year 2020-21. This article will discuss all the details of the EPF withdrawal. [B-01] Who can withdraw funds from their EPF account? Any employee contributing to the EPF may apply for a loan using their EPF balance as collateral. To complete a withdrawal, the employee must have their Aadhaar card, Permanent Account Number (PAN), and bank account, as well as their EPFO-issued Universal Account Number (UAN). If you fulfil all the criteria then you will be eligible for EPF withdrawal How much money you can withdraw from your EPF account? You may borrow up to 75% of your existing EPF balance as a loan, equivalent to three months’ pay plus the dearness allowance. Because the employee cannot get the funds, they are not required to withdraw PF from their EPF account. This withdrawal will provide staff with the funds they need while COVID-19 is closed. To apply for a loan via the EPFO, employees must visit the organisation’s website and sign in using their normal login credentials. How to withdraw PF? Anyone who works for a firm that the pandemic or epidemic has harmed may request authorisation from the Commissioner to withdraw PF. There are two options for getting your money back: submitting a paper application to be reviewed Filling up and submitting an online application Applying over the Internet Online procedures for withdrawal of PF are as follows: EPFO members must utilise their UANs anytime they use the organisation’s online services (Universal Account Number). Select “Claim (Form-31, 19 and 10C)” from the drop-down menu that appears after choosing “Online Services.” The member’s details and the “last four digits of their bank account number” are shown on the next page. After confirming the member’s identification, they may submit their claim by choosing “Proceed for Online Claim.” The participant must complete a “PF Advance (Form 31)” application. The cause for the modification should be noted as a “pandemic (COVID-19) outbreak.” To acquire an advance, a member must provide their address, specify how much they want, and scan a copy of a bank check. You may get an OTP connected to your Aadhaar by requesting one. A one-time password (OTP) has been sent to the phone number you provided (with Aadhaar authorities) The form must be submitted as soon as feasible. The paper-based application People who have connected their bank account and Aadhaar number to their UAN may file a claim with the EPFO using the new composite claim form at their regional EPFO office (Aadhaar). The Aadhaar-based form does not need the employer’s signature but must be self-certified will be more guaranteed for withdrawing PF. If a worker has not connected their Aadhaar and bank account to their UAN, they must file claims using the new composite claim form (Non-Aadhaar). Both the employee and the employer must sign the paper. The individual’s lawyer must also sign it so that withdrawing PF can be done smoothly. If the employee wishes for the funds to be deposited into their bank account, they must submit their PAN and a copy of a cancelled check with their application. The money will be deposited into the member’s bank account. The withdrawal of PF may be made as a non-refundable advance beginning March 28, 2020. Fiscal ramifications Workers impacted by the COVID-19 lockout may withdraw PF and get an advance they cannot repay. Workers may also utilise their EPF accounts to pay for items that are particularly essential to them. If a person has worked for the same employer for at least five years and then withdraws PF, they will not be required to pay income tax. The purpose of a cash advance is to provide funds in the event of a pandemic. However, levying a tax or TDS on the withdrawal would render the advance ineffective. This is because the money you withdraw will be taxed, commonly known as TDS. The EPFO has said unequivocally that workers are not required to pay income tax on any portion of their COVID-19 advance. The EPF will amend the requirements for withdrawing funds in 2022 The EPF is a savings account into which both the employee and the firm contribute. You can’t withdraw money from your EPF account anytime you wish. Here is a list of the ten most essential regulations to consider while withdrawing PF: Unlike a bank account, money in an EPF account cannot be withdrawn while the account holder is still employed. The Employees Provident Fund, or EPF, allows employees to save money for retirement. You will be able to withdraw PF when you reach the age of 65. Customers may do EPF withdrawal accounts in the event of an emergency, such as a medical emergency, the need to purchase or construct a house, or the need to attend college. You might not be able to withdraw as much money if you violated the conditions of your agreement in any manner. The account holder may request that a part of their money be withdrawn electronically. Even though you may only withdraw money from your EPF account after retirement, you can apply for early retirement at 55. Employees Provident Fund Organization (EPFO) members who are at least 54 years old and have been members for at least one year may withdraw up to 90% of their EPF corpus one year before retirement. If a person is threatened with job loss before retirement due to a lockout or layoff, they may withdraw PF. To withdraw PF, the subscriber must provide evidence of unemployment. The EPFO now allows consumers to withdraw 75% of their EPF funds after just one month of unemployment. Once the employee has found new employment, the remaining 25% may be transferred to the new EPF account. An employee could previously get their whole EPF balance after being out of work for two months. You may withdraw PF savings without paying taxes if you satisfy certain requirements. Before a worker may get their EPF corpus tax-free, they must have contributed to their EPF account for at least 5 years. If a person does not contribute to their EPF for five years, the whole amount is deemed income and must be reported and taxed accordingly. In this instance, the amount of EPF contributions would be considered income for the fiscal year. Taxes are deducted automatically if you pay your EPF withdrawals before the deadline. TDS is not required if the value of the transaction is less than Rs.50,000. The proper TDS rate is 10% if a person provides their PAN. If not, the tax will be increased by 30%. People who believe that none of their income should be taxed may file Form 15H/15G with the Internal Revenue Service. Employees no longer need authorisation from their manager before withdrawing funds from their EPF account. As long as the employee’s Aadhaar and UAN have been connected and the employer has provided authorisation, the employee may do this straight from the EPFO. You can check out how far along your EPF withdrawal is on the website. [B-02] Conclusion The country’s working class must contribute to the Employees Provident Fund (EPF). It’s there to assist you if anything horrible occurs, like the Covid 19 epidemic or because you’re growing older. Members may weather the present economic storm with the assistance of their EPF account and other types of assistance until they can get back on their feet. This safety net will keep the group together during a crisis until everyone can recover. This article has discussed all the possible ways of withdrawing PF. There are also more in-depth, educational articles on Piramal Finance.
08-11-2023
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