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General Insurance

Insurance Age Limits For Term Policy

Life insurance is a financial product that has remained relevant since the need for securing one’s life was felt by individuals. However, there is much confusion about the right life insurance age limit. Several myths also abound! It is important to check the facts well before proceeding buying one. Moreover, it is vital to understand the difference between full life insurance and term life cover to obtain the right type of protection. Sure, the term life insurance is deemed beneficial for young individuals just embarking on their careers, but the truth differs somewhat. Yes! There is a specific minimum and maximum related to the term insurance age limit. While the minimum age is obvious as the insured person is required to be 18 to be eligible for it, the maximum age is up to 65 years. The coverage extends to 99 years of age, which can be safely assumed to be for a lifetime. An Indian citizen is welcome to go through the various notifications related to life insurance published by the Reserve Bank of India to be capable of making an informed decision. Certain aspects that require careful consideration before buying a term insurance coverage should not be based solely on the maximum life insurance age limit. It helps to note the following facts: [B-01] Deciding the Tenure based on term insurance age limit A term life insurance plan is usually bought as a replacement for an individual’s income after their death. It is a good idea to buy the policy for a specified number of years until retirement. This may indicate up to 55 or 60 years of age or slightly more. Insurance advisors recommend taking cover until the age of 60 or 65. Buying the plan at 50 for 15 to 20 years or when one reaches the life insurance age limit is likely to be a waste. Another aspect that needs to be considered is one’s health. Many insurance companies deny selling term insurance to individuals with serious ailments. Benefits of buying well before the term insurance age limit An individual in their 20s or 30s may put off buying life insurance coverage until after acquiring a family. This is, however, a misjudgement. It is best to begin planning for the future as soon as one begins earning. Waiting for too long may result in delaying the action even further. The notion of deciding that there is plenty of time after checking the life insurance age limit would be foolhardy. The prospective insurance buyer must know that term insurance is not only about financial security. On the contrary, it provides one with additional income after a specified period is completed. Other benefits that one can look forward to by buying the right term insurance cover at a young age include: Low premium rate The remote possibility of rejection Assurance of independent financial security The flexibility of adding extra benefits as Riders Tax saving Benefits of buying when one nears the term insurance age limit True, many Indians wake up to buying life insurance when they are on the verge of retirement. With health conditions being compromised and a lack of money apparent, the possibility of buying term insurance seems bright. Do seniors get a good deal by spending a hefty sum on an insurance plan? Well, this is not a million-dollar question, either. Connecting with a reputed insurance company or an independent agent can help the senior individual get the right answers. Investing in a term insurance plan is possible for individuals 60 or older. While all insurance companies are willing to sell the policy until the prospective insurer crosses the life insurance age limit, one must be prepared to pay a lot more as a premium. Moreover, the concerned individual would have to undergo an extensive medical check-up to negate the pre-existing conditions that aggravate risk factors. Last but not least, seniors may find the sum assured to be much less than those provided to young and healthy individuals. Despite the negatives, most seniors find the term insurance a godsend, especially when they are eager to provide for their dependents. It is best to check the products offered by Life Insurance Corporation of India before moving on to private insurance companies offering similar insurance policies. Factors to note when buying term insurance within the term insurance age limit It is important to buy the policy as early as possible. This will allow one to pay lower premiums. Paying a lump sum is not advisable. Instead, one should opt for a plan that allows regular premium payment. This is an excellent financial planning move. Sure, there are multiple riders available with all term insurance policies. However, it is important to understand that each rider is available as a single investment plan and is payable before the life insurance age limit is reached. Selecting the most expensive term plan with riders is a strict no-no. Trying to hide an existing health condition is not advisable. The problem is sure to surface during medical examination, and the bond of trust between the carrier and insured person is lost. Simultaneously purchasing multiple policies will not be helpful. Having a maximum of two ongoing policies is enough! More is not necessarily better, and you may end up hindering your financial planning or fulfillment of obligations. It is important to plan and decide on a relatively big insurance cover. A small cover will not help one financially during times of crisis. A larger sum can provide the due assistance to the family when needed. It is recommended to shop for an insurance product and go with one of the best brands providing term insurance coverage for youngsters and seniors. [B-02] Conclusion Opting for a suitable term insurance policy before reaching the life insurance age limit is vital to obtain peace of mind post-retirement. Checking the associated facts is essential before making the final decision and signing on the dotted line. If you need financial guidance and assistance before buying a term insurance plan as an investment, visit Piramal Finance. This online platform helps learn everything about relevant developments in the world of finance, including personal loan, credit cards, and financial management.

08-11-2023

Funding for small businesses, how the options work

There is a lot that goes into starting and running a small business. From taking the first steps in the world of businesses to managing day-to-day needs, your small business needs a steady source of funds for many reasons. However, you do not need to dip into your savings to meet the expenses. You have the following funding options to help you out. [B-01] #1 Online loans from non-banking institutions You no longer need to visit an actual bank to get the money needed for your business. Non-banking financial institutions have made it easier to apply for small business loans online. Loan amount, interest rates, repayment tenure, and additional charges vary from one lender to another. However, a common factor is that you’re generally allowed to use the money as you want. So, you can consolidate your debts, buy equipment, or expand overseas using the loan amount. Benefits A faster way to secure the funds The process of pre-approval is usually available Lenient requirements to qualify #2 Business line of credit If you go for a business line of credit, you can borrow money from time to time as per your business needs. When you just want a fixed source of capital and can’t exactly spell out a figure your business needs, establish a line of credit. It works like a credit card – you borrow money up to the credit limit of the account. Then, you repay the amount and you can borrow again. Benefits The flexibility of borrowing multiple times from one credit line Helps in establishing business credit The interest is levied only on the amount used by a business #3 Business Credit Cards Business credit cards are easy to avail of if your credit scores are good enough. There are not too many complicated qualification criteria in this case of business financing. The only issue with a business credit card is that it typically comes with a higher rate of interest. However, you can bring down the interest rate to some extent if the personal credit scores are high. Benefits Helpful in establishing business credit Earning cash back or rewards on spending No interest to be paid if the statement balance is paid on time #4 Small business grants Small business grants are particularly lucrative to business owners because they do not need to pay the money back. Also, they do not have to give up shares in the company or pledge any collateral. In all true sense, small business grants are free money. But the biggest issue is that small business grants are not that easy to get. Too many other businesses will be vying for the same grant as yours. Benefits No monthly payment to consider No need to offer business equity for the investment No need to repay the funds given to the business #5 Working capital loans Another business loan that applies online is a working capital loan. Small businesses take this loan to meet their short-term requirements of liquid cash. Maybe you want to expand your business, offer a new product or service, or buy new equipment. A working capital loan is taken to meet all these expenses that are mainly related to running the day-to-day business operations. These are typically short-term loans, though you can talk to the lender if you want to extend the tenure. Benefits Easier to secure for a business running for a few years Available at affordable interest rates for some lenders Can be applied online for the loan #6 Invoice factoring If your business is involved in offering products or services to other companies, you can try invoice factoring to get the funds. In this case, you will be selling the outstanding invoices to a third party. This third party gets you the money right away in exchange for your invoices. They collect payments from the customers of your business, and you get the rest of the balance after their fee is deducted. Benefits Lenient funding qualifications The flexibility of using the funds Getting access to funds in a short time #7 Crowdfunding In the case of crowdfunding, you pitch your ideas to a group of investors online. If they like your idea, they offer the funds needed for your business. The crowdfunding sites for small businesses have a group of financing individuals to let your ideas reach out to different investors on different platforms. It can be debt crowdfunding where you need to pay the amount back. Or, it can be equity crowdfunding where you are seeking investors. [B-02] Benefits Low financial risks in most cases A way to test business viability in the market Building brand awareness and getting customers’ attention The funding option you choose is based on your preference, convenience, and monetary needs. However, regardless of the option you choose, make sure to check the lender for authenticity and reliability.

08-11-2023

Guide

Home Improvement Loans: Everything You Need to Know About

Transforming your home into a more lively and elegant living space is a dream for all. Who does not like to modify their living spaces into something worth coming back to every single day? Nothing is better than having your home reflect your personality and style. For this, renovating and refurbishing your house is the perfect option to go for. But completely modifying and rebuilding your house’s aesthetics requires huge amounts of funds. It becomes difficult to save enough money in a short period of time if you wish to renovate your house. So, to help ease off things for you, going for a house improvement loan will be the best option to opt for. [B-01] What Is A Home Improvement Loan? A home improvement or renovation loan is the type of loan one can avail of when they wish to renovate, modify or refurbish their house. It is different from a home loan. While a home loan allows you to purchase a house, a house improvement loan helps you improve and modify your existing home. This loan helps modify your home at really low and reasonable costs. It is a flexible and hassle-free means of transforming your home into a comfortable and elegant living space. Types Of Home Improvement Loan There are two types of home improvement loans- secured home improvement loans and unsecured home improvement loans. Secured Home Improvement Loan This type of new home renovation loan is also known as a second mortgage loan as it keeps your house as a guarantee or collateral. You will be granted higher loan amounts by going for this type of home improvement loan. The interest rate on this loan amount will be fixed and tax-deductible, depending on factors like your age, health, size of your house, credit rating, and location. You will have to repay in 10 to 15 years. Unsecured Home Improvement Loan This type of loan is riskier for the lender as it does not involve keeping the home as collateral. The rate of interest charged on this small loan amount is high, and the loan needs to be repaid in less than ten years. Your credit history is a huge factor in determining this loan, and the rate of interest is not tax-deductible. Benefits Of A Home Improvement Loan Applying for house renovation finance can help you fulfill your life-long wish of living in your dream home. It helps you spruce up your apartment and make it a place worth coming back to every day. A home improvement loan covers all the costs needed to modify as well as refurbish your house, making it all new and sparkly. Some of the other benefits you will enjoy by applying for a house improvement loan are: Lower Rates Of Interest Many people go for personal loans to renovate their homes even if the rates of interest are high. A home improvement loan has been introduced to help them save a buck load of money. This loan charges lower rates of interest than other types of loans. Speedy Processing It takes comparatively lesser time to process a home improvement loan. This is because only a handful of documents are required to approve this loan. The documents required are: Application form filled properly Last six months’ bank statements Identity proof Income proof Residence proof Employment proof Photographs The original title deed of your property A cheque for the processing fee Architect’s/ Engineer’s estimate of the renovation No-encumbrance certificate Tax Benefits Applying for a new home renovation loan can help you enjoy tax benefits on the interest paid. According to Section 24, an amount up to Rs. 30,000 can be deducted annually against the interest paid on the amount of loan borrowed. Pros And Cons Of A Home Improvement Loan Pros Renovating your house properly can increase the market value of your house, making it more attractive and desirable to other people. So, a home improvement loan that helps in making repairs and upgrades to your property can be beneficial. A home improvement loan can increase the value of your home at such a speedy rate that your house will be eligible to pay for itself. By going for this loan, you will not have to save enough money to bring about urgent repairs to your house. You can immediately leap onto it and save your house’s condition from worsening. Cons Hiring inadequate workers to renovate your house can make the loan go down the drain as your home value will deteriorate. Due to the fluctuating economy, interest rates can increase in the long run. This can make you spend more on the house in the future than you wanted to. [B-02] Make sure to read this article until the very end, as we have provided all the information that is to be known about home improvement loans.

08-11-2023

Tips & Advice

A Home Owner’s Guide To Home Loan Balance Transfer

Buying a home is a dream for many, and home loans help in making that dream come true. But what if the lender you chose initially doesn’t suit you anymore? Can you go for a home loan balance transfer? Let’s discuss the details of home loan transfer and dissect its benefits for a better understanding. [B-01] What is a home loan balance transfer? A home loan transfer, also known as refinancing, is a process in which you can change the lender of your home loan to get a better deal. In today’s highly competitive financial world, almost every lender gives you the freedom to get your home loan transferred to another lender. It is similar to switching a job when you get higher pay somewhere else. You talk to your HR and sometimes he negotiates to give you some added benefits to keep you in the office. In the same way, when you find a lender who is providing you a better home top up loan, you talk to your lender. Either he’ll let you transfer or give you some added benefits. When to go for a home loan balance transfer? Here are some circumstances when you should opt for a home loan balance transfer. In the initial days of loan: Getting a home loan transfer makes more sense when you are in the initial period of the loan. The transfer process usually requires some fee, which might occur to you as a loss if your loan is already about to end. When the time is more, the sum will be more, and therefore, the difference in the profit will be more. When you find a cheaper interest rate: Do not consider a home loan transfer if there is not much difference in the interest rate given to you by your present lender and the new lender. A home loan balance transfer will make the most sense if the difference is stark so that you will save a chunk of money in the coming years. Ignorant current lender: If your current lender is not responsive to your needs or is failing to provide you a proper customer experience, you should start looking for other lenders. Home top up loan opportunity: These days, some lenders also give you the option of taking a home top up loan, in which you can take a top-up loan on your basic loan that can be used for unlimited other things. A top-up loan works as a personal loan that you can use for anything you want and also gives you income tax relaxation up to Rs. 30,000. Cost-benefit analysis: The homeowners need to analyse the costing of every factor involved in the loan transfer process. Sometimes, the interest rate can be lower, but other costs can be much higher than your present lender. In this scenario, you will not get any profit from the transfer and will also have to pay the transfer charges. Benefits of home loan transfer 1. Reduced EMIs: The primary benefit of a home loan transfer is to get a better deal in the rate of interest, which reduces the EMI. You can also increase the tenure of your loan and reduce the EMI even more. 2. Part-prepayment option: Some lenders also provide the option of prepayment of loans, in which you can pay a part of the loan in bulk, which reduces the EMI. 3. Top-up loan: You get eligible to get a top-up loan if you consider a home loan transfer which serves as a cherry on top. [B-02] How to go for a home loan transfer online? The process of home loan transfer is almost the same as getting a new loan. It requires a lot of documentation and patience. However, now you can go for a home loan transfer online. Here’s how: Identify the new lender with whom you want to work with. Ask for the loan statement from your current lender, along with a No Objection Certificate. Try to negotiate with your current lender, in case they might give you any special deals to save you from going through the tedious process of transfer. Get your loan approved by the new lender and inform the previous one about it.

08-11-2023

Know More

Why It Is Important To Keep Reviewing Your Home Loan?

Buying a home comes with a lot of financial burden and responsibilities, which, however, is worth every penny you spend behind your cost niche. Home loans come with low interest rates and a duration that you can choose based on your age and other considerations. However, often a mistake that home buyers make is continuing with the payment of home loan EMI or installment amount without even checking or reviewing the amount remaining for years on end. It is crucial that you do so, not only for the sake of budgeting but also for other important reasons that might benefit your pocket. Read on to learn why you should keep reviewing your home loan occasionally. Foreclosure: Foreclosure is often an option that you might want to consider in the case of a home loan, especially if you have a hefty amount of cash ready with you. Foreclosure helps you close the loan while partial payment brings down the amount, reducing the monthly EMI amount, thus being less burdensome on your pocket. To foreclose or make part payments, you are required to review your home loan to check the amount remaining, the home loan interest rates, the charges, tax benefits, and how much you will be saving ultimately and thereby write the application to the bank putting forth your request. Top up: Financial situations do not remain the same all through, and at times, you may find it difficult to pay for the home loan EMI while meeting other needs. To cater to the increased demand for money, applying for a top-up loan with the bank from which you have taken your home loan is prudent. However, to know whether you are eligible for a top-up loan, you need to review your home loan with the same bank or if any other bank offers a top-up along with a home loan balance transfer. Balance Transfer: The financial market is dynamic and is always changing. The interest rates may change. The interest rates may plummet, but there may be better opportunities for home loan borrowers, special offers, and more. The situation may make you opt for better rates in other banks, wherein you may go for a home loan balance transfer. To do so, you must check your home loan and submit the necessary loan documents, proof of income or financial status, a No Objection Certificate from the bank, and other necessary documents to support the balance transfer. Although there is no specific rule on how often to review your home loan, it is advisable to get a check done yearly to note the market rates and other essentials. When you can get your home loan top-up or home loan balance transfer from reputed financial institutions like PCHF, you can rest assured of a hassle-free procedure. [B-02] Summary Buying a home is a huge financial responsibility, and once you have taken out a home loan, it is imperative to review your loan from time to time. Reviewing the loan has many advantages, such as saving by foreclosure or part payment, transferring the balance to a lesser interest rate option, and meeting expenses during financial crunches through top-up. Top-up and balance transfers from financial institutions like PCHF allow you to get the best rates in the market without any hassle.

08-11-2023

Know More

Different Type Of Loans That Offer Huge Tax Benefits.

Sometimes, you just have to take a loan to make ends meet. But that doesn’t mean you cannot make a saving while doing so. Here are 4 such loans you can make significant tax savings on. [B-01] 1. Home Loans: Much like others on the list, individuals have to take out a home loan in order to meet a basic necessity, shelter. Under section 80C of the IT act, you can avail of tax benefits of upto 1.5 lakhs on your home. Even the interest you pay on the home loan can be claimed through Section 24 of the IT act. In 2015, the government also launched the Pradhan Mantri Awas Yojana that was meant to provide housing for “all” by 2022. If you avail of a housing loan under the Pradhan Mantri Awas Yojana, you are eligible for deductions of upto 1.5 lakhs on the interest paid.It is worth noting that while you cannot claim this tax benefit on any properties that are under construction if you wish to finance the purchase of a second home, a deduction claim of upto 5 lakhs per year can be made (contingent on you not selling the house for 5 years from the possession date). If you are a first-time homeowner, additional benefits upto 50,000 can be claimed under section 80EE. 2. Personal Loan: A personal loan oftentimes referred to as a professional loan for those who are self-employed, is another way you can make some significant tax savings. The key to making tax savings on a personal loan/professional loan depends on where you are going to spend it. In other words, while there is no tax benefit for taking out a personal loan, if you were to use the personal loan to buy a house you could gain tax benefits under section 24 of the IT act, or if it were to fund your education, under Section 80E. 3. Car Loan: Owning a car is seen as a marker of independence and prosperity and many choose to take out a loan to purchase one. If you are self-employed, you can get tax benefits on the interest you pay for your car loan under section 43B of the IT act. It is worth noting however that you can only claim tax benefits on the interest payments you have to make, and not on the routine EMI payments. For instance, if you have an annual income of 15 lakhs and your interest payments on the car loan is 50,000, then only 14.5 lakhs of your income is taxable. 4. Education Loan: For many Indians, studying in a foreign university is a dream. For others, just attending a University is enough. Regardless, funding one’s education can be expensive and students often have to take out a loan. As education is a fundamental right, tax benefits have been made available for those who take out education loans, incentivizing more people to fund their education.If you take out a loan for higher education, the interest payments you make on this loan can be claimed for deductions under Section 80E of the IT act. This facility is available from the time you begin making interest payments, and upto 7 years from this date (or until you repay the loan in full). If you take out a loan to attend a foreign university, you are eligible for a further benefit from the lower TCS (Tax Collected at Source).Additionally, you can also claim upto 1.5 lakhs under section 80C on tuition fees paid, and this a separate deduction altogether which can be made in tandem with section 80E. For an education loan, tax benefits are limited to a maximum of 8 years. [B-02] Conclusion Home loans have always been a popular means of financing the purchase of a house, still seen as a symbol of safety and prosperity. Owning a home is a dream for most, and you could consider the home loan offerings available on the Piramal Finance to take your next step towards being a homeowner. However, home loans (loans of any kind) can be difficult to mandate, and in order to help mitigate some of this downside, however, the Income Tax Act has a number of provisions to provide citizens with relief in the form of tax benefits and deductions on loans that are taken out to purchase necessary goods and services.

08-11-2023

Know More

What Is CIBIL Score And Its Importance?

Your CIBIL score becomes a decisive factor when applying for a credit card or a loan. So, let us know more about CIBIL scores and their importance. What is the CIBIL score? CIBIL score or credit score is a number that represents a borrower’s creditworthiness. Creditworthiness refers to a borrower’s ability to pay back the borrowed money. Credit bureaus determine credit scores after considering several factors, including repayment history, credit utilization ratio, and credit history.The Credit Information Bureau (India) Limited (CIBIL) is the most popular in India. Hence, a credit score is synonymous with the CIBIL score here. CIBIL score is a three-digit number that ranges from 300 to 900. Needless to mention, the higher the CIBIL score, the better it is. [B-02] Importance of CIBIL Score Now that you know what the CIBIL score is, here is how it plays an important role. 1. Role in loan approvals: CIBIL scores play an important role in loan approvals. Before approving a loan to a borrower, lenders look at the borrower’s CIBIL score. This CIBIL score is a good measure for judging a potential borrower. If they have a good CIBIL score, it indicates that they have handled their previous debts responsibly. On the other hand, a low CIBIL score is an implication that the borrower has handled their previous debt badly. Therefore, having a high CIBIL score can help you get loan approval. 2. Access to higher loan amounts: It is not just loan approvals; one’s CIBIL score determines the loan amount. If you have a good CIBIL score, the lender feels confident you can repay their loan. Thus, you will be eligible for higher loan amounts. 3. Credit card eligibility: With every credit card application that banks and financial institutions approve, a huge amount of risk is involved. Therefore, credit card issuers have some eligibility criteria for the applicants. The applicant’s CIBIL score is one of the main ones. With a good CIBIL score, you will be eligible for some of the best credit cards in the country. 4. Higher credit limits and lower rates of interest: You might be eligible for higher credit limits if you improve your credit limit while having an existing credit card. With higher credit limits, the interest rate of your credit card can also go down. 5. Buy products on EMI: Sometimes, buying a phone or a laptop on EMI has its perks. However, eligibility for EMI purchases often depends on your CIBIL score. Once again, having a high CIBIL score helps. Improve your CIBIL score By now, it must be evident how important CIBIL scores become in different aspects. Hence, it might affect you if you don’t have a credit profile or a low CIBIL score. But there are some ways you can boost your CIBIL score. 1. Pay your dues on time: One of the best ways to build up a good CIBIL score is to pay all your dues on time. This includes EMIs of personal loans, home loans, and credit card dues. 2. Don’t be a defaulter: Failing to repay a loan or credit card dues can make you a defaulter. This would significantly bring your CIBIL score down. Hence, make sure to pay off all your existing debts and credit card dues. 3. Low credit utilization ratio: Your CIBIL score also gets hampered if you use your credit irresponsibly. People with a high credit utilization ratio are usually thought to be heavily dependent on credit. Hence, they are considered less eligible for more credit, and their CIBIL score decreases. Your credit utilization ratio is the percentage of the total available credit you use. Keeping this ratio to 30% and using your credit wisely can help you improve your CIBIL score. 4. Don’t have too many debts: Too many debts can also lower your CIBIL score. If you keep closing off your existing debts, your CIBIL score will automatically increase.

08-11-2023

Other

Best Intraday Trading Tips You Should Know

Intraday stock trading is one of the riskiest yet most lucrative stock trading strategies. Day trading, also known as intraday trading, is the buying and selling of equities within a single trading session. Essentially, you buy intraday stocks daily, hunt for a fair price to sell them for, and then take the profit. Share values are constantly changing throughout the share market today. Intraday traders’ sole purpose is to profit from these price fluctuations. They purchase and sell various types of stocks after making calculated moves on the same day within trading hours, i.e., from 9:00 a.m. IST to 3:30 p.m. IST. Since everything is done on the same day, it is known as intraday stock trading. Your broker will decide on your position in the market. Whether a person is an expert trader or a newcomer, this type of trading is always advantageous but comes with a lot of market risk. So, it’s better to understand the subject as much as possible, including all kinds of current market indications and trends, which would help you make better choices. [B-01] Delivery trading versus intraday trading Contrary to intraday trading, delivery trading is used when you buy a share but don’t sell it on the same trading day. The equities purchased through delivery trading are credited to your Demat account. You can keep it for as long as you wish before selling it—days, months, or even years. Thus, you remain the owner of these stocks. Investors in delivery trading look for gains by tracking the stocks’ long-term price movement. Pros of intraday trading The trader can benefit from the changes in the market price of the equities. The merchant can avoid delivery fees. If the trading platform is set to do so, the position is squared off automatically if the trader does not close the deal. Cons of intraday trading The trader won’t be the owner of the shares he transacted that day. If the closing rate is unfavourable, the trader suffers a loss. He could have to give up profits if the market is adverse. Best Tips You Should Follow For Intraday Stocks Trading Here are some basic tips for intraday trading that you can use to make money on the stock market. Select the right stocks: Choosing the right portfolio to buy should be your main goal when starting intraday stocks for today. Not all stocks are suitable for intraday trading. Since you would be buying and selling stocks during a trading session, you would need to choose ones with high levels of liquidity. Buying and selling will be easier as a result of this. Before purchasing the stocks, carefully evaluate them. Remember to set a stop loss: When trading shares, investors should always select a stop-loss limit. Following a downturn, the share price can occasionally rise to a high level. Setting a stop loss limit will automatically cause their shares to be sold off before a downturn. As a result, it will stop investors from losing money. Investors should not get too confident when a stock hits a record high during an intraday trading session and expect it to climb more since the possibility of a decline is high. Therefore, investors should exit the stock after the target is reached and it records profits at an acceptable level. Establish entry and exit price goals: Even if it means missing out on the opportunity to purchase the stock, set a price at which you would want to buy it and adhere to it. Set a target price at which you’d like to sell the stock similarly, even if doing so means you could miss out on any potential future profits. The stock market is highly unpredictable. Most theories about the stock market are based on basic research and technical analysis. Some investors make losses because these studies are just indicative and not concrete. Therefore, when an investor thinks that the price of the stock could increase but is actually in constant decline, the investor should choose to sell the shares to avoid any substantial loss. Investors in intraday stock markets should manage their funds carefully since they risk investing more funds to make significant gains. If the market is bad, the investors may lose all their invested money. Always follow the fashion: When there is a significant market trend, stock purchases are advised. And if it’s bad, shorting stocks makes sense. A contrarian market outlook is never a good idea because it can backfire. For example, when the market is bullish, many people sell equities short in the hope that the price will reverse. Such reversals are infrequent. Intraday Trading Tips for Beginners Several charts are available to show how the share has performed, including bar charts, graph charts, candlestick charts, and 5- and 15-minute charts. These enable investors to gauge a share’s performance and trade based on it. Consider setting a stop-loss limit to prevent yourself from suffering a significant loss. Never hurry a trading session; thoroughly analyze the intraday stocks before investing. Pick the best references while evaluating the share market today. [B-02] Conclusion Use these intraday stock trading tips to help you become a better trader and make the most of your next trading sessions. Intraday trading involves a significant commitment of time to analyze, research, and review the performances. Even though intraday trading is riskier than normal trading, it may be one of the most rewarding tactics if done correctly. If you need help with finances, you can always take the help of a financial expert like Piramal Finance. They will suggest which trading options and stocks are best for you and help take care of your personal loan requirements, if any.

08-11-2023

How To?

What Is Property Tax? How To Calculate It?

What is Property Tax? When you buy a piece of property, you are often required to pay a number of taxes over and above the cost of the property when you make the purchase. Of these, Property tax or House tax is a tax levied on a property and is a percentage of the value of the property. Generally, there are three main types of methods that are employed to calculate property tax. The Rateable Value System (RVS), the Unit Area Value System (UAS) and the Capital Value System(CVS). Property tax rates are usually decided on a city-wide basis by the local municipal authority. In Mumbai for instance, the MCGM is responsible for setting property tax rates. In this article, let’s take a look at the various methods which are employed to calculate property tax rates. With this, you can look up the method employed in your city and carry out the calculation yourself so that you are sure of the exact amount you owe. [B-01] Types of Property Taxes 1. Annual Rental Value System/Rateable Value System(RVS): Under the Annual Rental Value System, the home loan tax calculator you would employ would first account for the gross annual rent of the property which is decided by the municipal body of that city. Various factors such as the condition of the property, amenities provided and distance to key landmarks can factor into this price estimate. Here is how the calculation would be calculated for property in Chennai. Rental Value of the property (Monthly) = Basic Rate/sq feet * Plinth AreaAnnual Rental Value = (Monthly Rental Value *12) – 10%.Based on this rental value the property tax will then be applied under the Annual Rental Value System. 2. Unit Area Value System (UAS): Under the Unit Area Value System or UAS, property tax accounting for stamp duty is calculated based on the per square foot price of the built-up area of the property. This square foot per month value is decided by the local authorities after factors such as expected returns, location, price of the land, occupation of the property.The following formula (or variations of it ) are likely to be applied in cities like Bangalore, Hyderabad, Kolkata and New Delhi.Annual Value = Unit Area Value * Covered Area * Use Value* Age Value* Structure Value* Occupancy Value 3. Capital Value System (CVS): In order to calculate property tax based on the Capital Value System or CVS, the stamp duty of the property has to be accounted for. In this system, once the stamp duty of the property has been set, which is usually carried out by the local authorities, the property tax for a loan against property, for instance, is calculated based on this value.Mumbai follows the CVS System, and the property tax based on the stamp duty is decided by the MCGM, the local municipal corporation. The calculation is carried out in the following manner. There are a number of variables that factor into the stamp duty and subsequent tax rate of the property such as the type of the property, what amenities are provided, the age of the property and the location, among others.The tax is then calculated based on the following formula :Property Tax = Tax Rate * Capital value.The rate, issued by the government based on the value of the stamp duty is revised on an annual basis. Conclusion. Buying your first home, making your first property investment or even taking a loan against your property can be an exciting prospect, though you should ensure you account for the property tax in order to avoid rude surprises later on. If you are looking for a home loan, a number of options are available on the Piramal Finance website. If you wish to apply for a home loan or take a loan against property you own on the Piramal Finance Website, you can follow these steps. [B-02] How to apply for a home on the Piramal Finance website. Navigate to the ‘Home Loan’ Section on the Piramal Finance website. Click the ‘Quick Apply’ button. Proceed to complete the form Upon submitting the form, you will be contacted by a representative with assistance shortly. To learn more about such types of topics, visit Piramal Finance.

08-11-2023