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What you Need To Know About Financing a Business Acquisition

Acquisition financing can be an unquestionably helpful choice for many organizations. Here with Piramal Finance you will get the detailed information for it. You’ll need to finance the acquisition if you’re looking to purchase a business. There are many different ways to finance a business acquisition, and each option has its benefits and drawbacks. It’s important to understand the different types of loans available. MSME loan is a type of loan that is specifically designed for small and medium-sized businesses. This type of loan can be used for various purposes, including financing a business acquisition. [B-01] Another option is a business acquisition loan, a type of financing designed explicitly for this purpose. It’s important to research all your options before deciding on the right loan for your needs. In this article, we will discuss everything about financing a business acquisition. Let’s get started. Pros of Purchasing an Existing Business Avoiding the initial stage The business has already been established. This includes customers, suppliers, and staff. You don’t need to hassle finding the right people and building a customer base from scratch. Purchasing an existing business means you can hit the ground running. The business will have an operational history that you can use to your advantage. This is especially helpful if you’re looking to acquire a business in a new industry. Instantaneous cash flow One of the first things business owners consider when acquiring another business is how the transaction will affect their company’s cash flow. An acquisition can be a great way to improve your business’s cash flow instantly, but it’s important to understand how the financing will work before you commit to anything. Faster expansion One of the key benefits of the acquisition is that it can help you expand your business much faster than if you were to grow your business organically. You instantly increase your customer base, product offerings, and market share when you acquire another business. Accelerates growth One of the most significant advantages of business acquisitions is that they can help you rapidly grow your company. If you’re looking to expand into new markets or product lines, acquiring another business is often the quickest and most efficient way. Additionally, business acquisitions can help you fill gaps in your current operations, giving you a more comprehensive and well-rounded business. Increases your market reach The business acquisition can help you expand your market reach. This can be especially beneficial if you’re looking to enter a new market or tap into a different customer base. By acquiring another business, you’ll instantly have access to their existing customer base and can start marketing your products and services to them right away. Access to knowledge The best thing about business acquisition is that you can learn a lot from the business you acquire. This is because you will be able to access the business owner’s knowledge and experience. You can also get access to the business’s financial information. This will allow you to make better decisions regarding the business acquisition. Business financing is readily available You can get business financing from several sources, including banks, credit unions, and online lenders. The type of business financing you choose will depend on many factors, including the amount of money you need to borrow, the terms of the loan, and your financial situation. Ways to Finance a Business Acquisition Business owners have a few different options for financing a business acquisition. They can use their savings, take out loans, or bring on investors. Here are some primary ways to finance a business acquisition: Term loans A term loan is a loan you pay back over a set period, usually between two and five years. The loan length will depend on the amount of money you borrow and your business’s financial stability. You’ll need good credit and a strong business plan to qualify for a term loan. Term loans can be a good option for business owners who need a large sum of money to finance their business acquisition. SBA loans The Small Business Administration (SBA) is a government agency that supports small businesses. One way they do this is by guaranteeing loans from commercial lenders. This means that if you default on the loan, the SBA will pay back the lender. Leveraged buyouts Leveraged buyouts are one of the most common ways to finance a business acquisition. In a leveraged buyout, the buyer takes out a loan to cover part of the purchase price. The rest of the purchase price is covered by the equity from the business being acquired. Crowdfunding and peer-to-peer lending Crowdfunding and peer-to-peer lending have become popular alternatives to traditional business financing. These options allow you to tap into a network of individuals willing to invest in your business. Crowdfunding is a great option if you’re looking to raise money for a specific project or goal. [B-02] The Bottom Line The business acquisition can be a great way to grow your business. But, as with any significant purchase, it’s important to do your homework and understand the financing options available to you. With a bit of planning and preparation, you can find the right financing solution for your business acquisition.

08-11-2023

Tips & Advice

A Complete Guide to Business Acquisition Loans

Purchasing another business or franchise can be a pretty big task and would involve a great deal of commitment, especially if it has true potential and goodwill. There are several factors to consider while acquiring an entire business, but the benefits of this business loan are numerous. [B-01] What Do You Mean by ” Business Acquisition Loan “? A business loan for acquisition refers to a commercially significant type of funding that is granted either to purchase an existing business or to set up an entire franchise. Here, the amount to be borrowed as well as the rate of interest charged on it depends on the nature of the business you are purchasing as well as your own qualifications. Such loans range approximately from Rs. 5 lakhs to Rs. 5 crores. Qualifications for Business Acquisition Loans The decisions regarding the acquisition of a franchise or business firm made by lenders depend on the nature of the business you will be purchasing. But it also depends a great deal on the individual’s finances. The lenders tend to analyse your finances and what you own beforehand. Lenders have to carefully analyse and examine the financial and individual history of the borrower to check the candidate’s suitability for being granted this loan. They do so to test the person’s capabilities and whether they possess the required qualifications. Personal Credit Score The first thing the lender checks is whether the borrower’s credit score is up to the mark or not. The person would possess a credit score of 650 to 690. So, please focus on this when you are obtaining a business loan. It is bound to help you in several ways to analyse many factors. Credit Score of The Business The financial history of your business and its credit score are crucial factors in determining the rate at which you will obtain the business acquisition. One can determine your business’s credit score through your payment history, new credit, amount of debt, types of credit utilized, and length of previous credit history. This will ensure whether you are eligible for business acquisition. Valuation Of Business Your lender might ask for a business acquisition loan, your business to achieve an adequate price to obtain a business acquisition loan. This will be done by an independent firm that specializes in valuation. Providing Tax Returns The lender will also ask you for your tax returns for the last three years. In addition to this, you are also liable to provide three years of corporate tax returns on the franchise you are willing to purchase. Your Aspirations Towards the Acquiring Business You will also be asked to put forward your business plan for the business you are choosing to acquire. They will do so to judge whether you have the right plans and strategy to make your business grow and become profitable. How To Apply for A Business Acquisition Loan? Seeking counselling from company mergers will allow you to get more knowledge about this kind of loan. You can select from a variety of lenders and banks who can grant you this loan without any hazard. You can now choose from numerous business acquisition financing options. Your chances of qualifying for the loan depend ultimately on the nature of the loan you are willing to obtain. The documents required to acquire this loan for a business are Business Tax Return, Business License, Balance Sheet, Business Plan, Bank Statement, Business Debt Schedule, Personal Tax Return, and Business Lease Statement. The first step toward applying for a business loan will be to evaluate your qualifications and make sure that they match the requirements of the lenders. The lenders who offer a large amount as a loan often tend to carefully analyse your personal and business-related documents before granting you the loan. After carefully screening and examining the options available, go with the most suitable loan for your needs. This will allow you to get hold of the loan you are sure to obtain. There are a variety of loans you can choose from- Traditional Term Loan, SBA Loan, Seller Financing, Online Term Loans, and many more. [B-02] The last step on your part will be to complete the application process and present it in front of the lenders. For this, you will have to get hold of all the documents necessary for business acquisition. Get Hold of The Benefits of Business Loans at The Earliest If you have access to all your required documents and have the desired qualifications set by the lenders, you will get this loan from the company mergers in no time.

08-11-2023

Tips & Advice

How To Improve Your Cibil Score?

A good credit score is a much-needed aspect when looking to obtain a loan. Financial crunches can crop up at any point in time and one may feel the need for money to cater to varied needs. It is at this time that a personal loan or quick loan can come in handy. However, possessing a good CIBIL score is mandatory in order to ensure that you can get your loan approved without much hassle. [B-01] What is CIBIL Score? CIBIL score is the score that depicts your credit history and is dependent on a number of factors such as your repayment history, the number of unsecured loans you have, non-repayment history among others. The ideal CIBIL score is 750 and often those with lesser Credit scores find it difficult to obtain a loan when they need it. Therefore, in times when you are in dire need of money, you may be faced with the dilemma as to “How to improve my CIBIL score?” Even though your credit score may not be at level, there are ways you may adopt to improve it. Read on to know more about how to improve your CIBIL score. Make Your Payments On Time One of the major causes of lower credit scores is the delayed payment of your credit card bills. Hence, one of the first things to do is to pay your credit bills before the due date so that they do not end up with increased interest rates. If you are someone who tends to forget, set reminders that would remind you to repay your bills on time. Automated systems are also helpful in ensuring that your loan repayment amount or EMIs are deducted from your bank every month automatically. Maintain A Balance Unsecured loans comprise credit cards and personal loans, while secured ones encompass home and auto loans. Credit-lending companies prefer offering loans to individuals with secured loans than those with unsecured loans. While the latter comes in handy in different situations, it is worthwhile having at least one secured loan along with the unsecured loans that you may need to cater to varied financial requirements. This boosts your credit score automatically. Be Aware Of Any Errors In Statements At times, even after closing a loan, the bank may not have issued a No Objection Certificate which is evidence of your loan being closed from your end. In that case, your loan repayment schedule may reflect as ‘ongoing’ and you may be shown as a current customer. This may affect your Credit score just like many other suspicious activities which you need to keep reviewing from time to time. Check Your Credit Limit It is always advisable not to reach the maximum limit of your credit usage as this has a negative impact on your CIBIL Score. If you feel your expenses on credit cards are more, it is better to customize the limit in sync with your predicted expenses. Do Not Take Too Many Loans Taking too many loans simultaneously only labels you as ‘a borrower who does not have enough funds and may turn out to be a defaulter while not being able to manage them all at once’. It is therefore better to take one loan at a time and pay it regularly to improve your CIBIL score. Opt For Longer Tenures When taking a loan, opt for longer tenures. This will ensure that you have more time to pay your dues off and the installment amount will also be lower, thus making it easier to repay. Having loans and credit cards in your name does not affect your credit score negatively. That is, as long as you know how to use it prudently and maintain your repayment record in a disciplined and organized manner. Once your score reaches a good level, you will be in a position to acquire the right loans easily to meet your financial requirements. [B-02] Summary Being in debt does not mean a negative thing- financial crunches are natural. It pays to know the right ways to make the best of your loans and credit cards in order to maintain a good CIBIL Score.

08-11-2023

Know More

Things you should keep in mind while buying a Home Insurance

What Is Home Insurance? Home insurance is a type of insurance that covers the cost of damage to your home. Or its contents if it’s damaged by fire, theft, or other disasters. Home insurance is a great way to protect your house and its contents from financial loss. If you need help with repairs after a covered loss. You may be eligible for reimbursement from your homeowner’s or renter’s insurance policy. Housing insurance covers the cost of rebuilding or replacing your home. Suppose it becomes damaged due to an accident (such as a fire). It also covers personal belongings inside your house. Home insurance is a great investment that protects your home and its contents. Insurance For New homes is also worth considering if you’re planning to buy one. [B-01] Importance of Buying a Home Insurance Buying home insurance is a great way to protect your family and assets. When you buy a home, you’re investing in your future. Your investment property is an asset you can use to pay for day-to-day expenses. And make future payments on things like mortgage or rent payments. Housing insurance protects your investment property from: Losses because of earthquakes, fires, windstorms, floods, vandalism and other disasters Personal injury/death of tenants and guests in the event of an accident at your house The price of housing insurance varies depending on where you live. How much coverage do you want? And what kind of deductible (the amount you pay out of pocket before the insurance kicks in)? You have to choose whether you want extra protection too. So, buying home insurance is an important decision you shouldn’t take lightly. And Insurance for New homes is also worth considering if you’re planning to buy one. What factors influence the cost of home insurance? Home insurance is a big expense for many people. The cost of housing insurance depends on a variety of factors. Including the value of your home and how much coverage you need. It’s important to know what influences the cost of home insurance. So, you can make an informed decision about what kind of coverage best suits your needs. The following factors will help you understand. What affects the cost of your home insurance: Your personal information and claims history The type of building you live in (e.g. a single-family house) The age of your home (older homes are more likely to experience damage than newer ones) Whether any renters are living in the same house as you can lower your homeowner’s insurance premiums by up to 30%. Things to Consider When Buying Home Insurance We invest our hard-earned money into building our homes. Yet we never give home insurance priority. By choosing not to buy home insurance, we leave ourselves open to dangers like burglary. Also, to the risks posed by fire and related disasters like lightning, earthquake, or storm. While having home insurance might not prevent these unfortunate occurrences. It might give you the financial support you need to compensate for your losses. Buying Home Insurance can be complicated, but it doesn’t have to be. We examine factors to take into account while Buying home insurance. Many types of insurance There are two types of home insurance: building insurance and content insurance. Permanent fixtures and building materials are covered by building insurance. Personal property such as furniture, jewellery, and clothing are covered by content insurance. Both types of insurance should cover the building structure and contents. Or you can choose a comprehensive package. Additionally, it benefits in premium expense savings for you. The cost of land is not covered by home insurance. The price of land is rarely covered by home insurance. It solely covers the construction costs. That is determined by multiplying the carpet area. And the construction costs in your city. The correct valuation must be performed. The most crucial step before buying home insurance. It is to accurately value the property and its contents. You would have to pay more out of pocket at the time of the claim if you gave your home a lower value. Additionally, the premium’s cost depends on the coverage level. In this situation, the higher the level, the higher the premium. Deductibles It is the sum that you pay at the time of the claim. When purchasing coverage. Keeping the deductible limit in mind is crucial because it needs to be reasonable. Discounts You may be eligible for an insurance discount if you do certain things. Being close to a fire or police station can make your home safer. Installing security tools like burglar alarms or CCTV in your home. No-claim discount Suppose a policy hasn’t had a claim filed against it in a year. You can take advantage of the no-claim discount when your policy is renewed. You will be able to reduce your premium expenses thanks to this. But not all insurance companies provide this service. Regular policy updates It’s crucial to re-evaluate the value of your building whenever you make new modifications, such as building a new room or adding new furnishings, to ensure that you have the best coverage possible. [B-02] Conclusion A home is often the most expensive buy you’ll ever make. So, it’s important to protect your investment with the right insurance. If you need help with managing your finances, you can always reach out to Piramal Finance. We can guide you through your personal finance woes with easy customisation and wide-ranging product knowledge. With us, you can also avail of home insurance after consultation with financial experts. Visit us to know more!

08-11-2023

Health Insurance

Tips For Buying A Health Insurance For Freelancers

There are many benefits of being a freelancer or being self-employed. Freelancing allows you to do things your way, on your own time. You don’t have to worry about being under someone. There are many more opportunities for growth and learning as a freelancer. All these factors make freelancing a great experience. But, freelancing has some downsides. Your employed friends don’t have to worry about some things, that you now have to work around. This includes health insurance, job security, regular payment, and more. Out of all these, health insurance, in particular, can be challenging to deal with. It is common for the company you work for to provide you with a health insurance plan. In many places, the law requires the employer to provide you with proper medical care. But, as a freelancer, you may have to figure this out on your own. To make the process of buying a health insurance plan easier for you, here are a few tips. These can help you make the right decisions when it comes to buying health insurance online. [B-01] The Earlier, The Better One of the key challenges of freelancing is that you don’t have a set income every month. Some months your income will be higher, and some months it will be lower. This means you never know what the future brings and must always stay prepared. This is very true for your health insurance plan as well. You never know when a medical emergency will strike you. This is why it’s always a good idea to hope for the best and prepare for the worst. You don’t want an emergency to hurt your savings seriously. At the same time, you also don’t want to miss out on proper medical care due to a lack of funds. This is why having a health insurance plan is so important. You should always look at how your freelancing journey can get you a health insurance plan. This will mean one less thing to worry about going forward. Know What You Need Before buying insurance online, it is important to know your needs. There are a lot of factors that you need to consider before you can decide upon anything. Once you know what you need, it will be easier to find a health insurance plan that is well-suited for you. Additionally, when buying health insurance, you must know yourself very well. Health insurance plans consider the following: Your personal medical history Medical history of your family Drinking and smoking habits The type of work you do (for example, are you working in a place that can affect your health?) Your fitness level and workout habits All these factors help you to understand the coverage you need and your monthly premiums. Do Your Research! The most crucial part of buying not just health insurance but anything is to do your research. Many companies offer various plans and services. Doing your research to understand which plan is best for you is essential. You can compare health insurance online, talk to your peers, and take advice from your doctor. This can make it easier for you to decide and help you find better offers. You will rely on your health insurance when you are in a dire situation, so it needs to be trustworthy. Make sure you look at all the details. Don’t forget to read the fine print, and the terms to know what you are getting into before it is too late. Stable Rates, Affordable Premiums, & Discounts When buying health insurance online as a freelancer, one important thing to ensure is that your policy has fixed or stable premiums. Many health insurance plans have low premiums at the start of the policy, which later increases as time goes on. It is essential to go for a plan with a stable premium that won’t increase after you buy it. Another factor you can consider is to look for plans with discount offers. Some plans tend to offer discounts on the monthly premium if you didn’t make any claims in the previous year. This can be handy as you never know how much work you will have the following year when freelancing. Think Family Insurance You can get more benefits for a lower monthly premium if you have a family health insurance plan. This can be better than a personal plan in some cases. It is always better to buy a family or group insurance plan. With the help of a family insurance plan, you keep yourself and your family safe at lower premiums. It is a win-win situation! Avoid Fraud There is no shortage of scammers, frauds, and fake insurance agents. Insurance agents can often sell you a bad policy with no benefits but high premiums. You must be wary of these people. If you are buying health insurance online, make sure you only do so from a trusted website. You will be sharing your personal information when purchasing a health insurance plan. This is why it is necessary to take great care so that no one misuses your personal information. [B-02] Final Thoughts Buying health insurance for yourself might seem like an overwhelming process. But it is easier than you think and very necessary. Make sure you read all the documents and do proper research. Only buy the plan that meets all the needs and requirements you have. Don’t hesitate to ask for help when you get stuck. You should reach out to your peers or, a professional for more advice. To learn more, check out the other blogs on Piramal Finance.

08-11-2023

What is debt consolidation loan: Everything you need to know

When you are struggling to make your monthly payments on all of your debt, it may seem like there is no way out. You are not alone! Millions of people find themselves in this same situation every year. If you feel overwhelmed and don’t know where to turn, debt consolidation may be your answer. In this blog post, we will discuss debt consolidation loans meaning and how they can help you get back on track financially. Let’s get started. [B-01] The Debt Epidemic Debt usually has a negative connotation, but in truth, debt is not always a bad thing. Debt can be a great tool to help you finance large purchases that you may not be able to pay for upfront. However, when misused, debt can quickly become a burden. It is especially true when you have multiple debts with different interest rates and terms. It’s where debt consolidation comes in. The professional loan for lawyers can help you get your debt under control and make monthly payments more manageable. How Debt Consolidation Works Debt consolidation is taking out one loan to pay off multiple loans or debts. This can effectively save money on interest payments and simplify your monthly payments by consolidating them into one bill. Debt consolidation loans are usually offered at a lower interest rate than your existing loans, saving you money over time. There are two main types of debt consolidation loans: secured and unsecured. A secured loan is backed by collateral, such as a home or car. An unsecured loan is not backed by collateral and typically has a higher interest rate. When consolidating debt, you will want to consider the type of loan that best suits your needs. For example, if you have equity in your home, you may get a lower interest rate with a home equity loan. If you don’t have any assets to use as collateral, an unsecured personal loan may be the best option. Furthermore, if you’re looking for a professional loan for CA lawyers, you must research and find a reputable company that offers this type of loan. Benefits of Debt Consolidation Debt consolidation can provide numerous benefits, including: Simplifying your monthly payments by consolidating multiple debts into one loan with one monthly payment Obtaining a lower interest rate on your consolidated debt can save you money over the life of the loan Improving your credit score by making all debt payments on time and in full Freeing up cash flow each month, which can be used to pay down other debts or save for future goals If you struggle to make ends meet each month due to high-interest rates and multiple monthly payments, debt consolidation could be your solution. By consolidating your debts into one loan with a lower interest rate, you can save monthly money and get out of debt sooner. Risks of Debt Consolidation There are a few risks associated with debt consolidation, the most common being that you could end up paying more in interest than you would have if you had continued making payments on your original debts. This is especially true if you consolidate your debt with a high-interest loan or credit card. Another risk is that you could miss payments on your consolidated debt, which would damage your credit score and put you back in the same situation you were in before consolidating. Finally, debt consolidation only works if you can stick to a budget and make regular, on-time payments – if not, it could do more harm than good. If done correctly, however, debt consolidation can be an effective way to get out of debt and improve your financial situation. It can help you save money on interest, lower your monthly payments, and get out of debt faster. Just be sure to research and understand the risks before consolidating your debt. Is Debt Consolidation a Good Idea for You? Debt consolidation can be a good idea if you struggle to make payments on your debts. A debt consolidation loan can help you pay off your debts, but it is crucial to understand how the loan works before signing up for one. There are also professional loans for lawyers and other professionals that can help with debt consolidation. If you have a lot of debt, consolidating your debts into one monthly payment can make it easier to manage your finances. You should also consider whether you can afford the monthly payments on a debt consolidation loan. Debt consolidation companies in India offer different options for consolidating your debts, so it is important to compare the terms and conditions of each company before you choose one. You should also ensure you understand the fees associated with a debt consolidation loan. Debt Consolidation vs Debt Settlement When you consolidate debt, you take out a new loan to pay off multiple debts. It usually results in a lower interest rate and monthly payment than what you currently pay. But it doesn’t reduce the principal balance of your debt—it simply transfers it to a different loan. Debt settlement, on the other hand, is a negotiation process where you or a professional negotiator contact your creditors to try to reach an agreement on forgiving some of your debt in exchange for a lump-sum payment that’s less than what you owe. [B-02] The Bottom Line Debt consolidation is the process of taking out one loan to pay off multiple debts. This can be an effective way to lower your monthly payments and reduce your overall debt burden. However, it’s important to understand the pros and cons of debt consolidation before making a decision.

08-11-2023

Guide

Small business loan calculator for business finance options

A small business can easily attain huge success once it has adequate funds to support its business efficiently. Most small-scale firms go for business loans to keep their firms in a stable position. Since every business requires capital funds to function properly and meet its expenses, they apply for a business loan urgently. This helps them expand their operations and mitigate a shortage of funds. But how can one determine the number of funds their business will need? To grant you relief on the same, make use of a small business loan calculator. [B-01] What Is A Business Loan Calculator? A business loan calculator comes in handy when you wish to know what are the potential expenses for which you will require a loan. It is also a beneficial option for differentiating between the various loans you can go for, thus promoting efficient business financing. There are many lending financial institutions available that offer a business loan calculator on their websites. These calculators aim to make your loan hunt simpler and much more significant. Applying for a professional loan never seemed easier! What Does A Small Business Loan Calculator Have To Offer? Apart from the overall requirement of an appropriate loan, you will get tons of other information you must have before applying for business loans. You are bound to get access to a variety of valuable information about loans from this loan calculator. You will get to know whether an expense incurred every month will interrupt your business budget or not. Apart from this, you will get knowledge about the best repayment options for your needs. Without this calculator, it would be impossible manually to decide whether certain expenses can be incurred at a much more reasonable interest rate. How To Make Use Of A Small Business Loan Calculator? Each small business loan calculator is different in its unique way. But all of them require typing in similar data. By using this, you will get to determine the interest rate, loan amount, loan repayment term, and much more information. Once you get hold of this info, insert your calculator and select the option ‘calculate.’ A small loan business calculator will get you the perfect estimate, if not the exact amount of the loan. Since no one can determine the exact loan amount before it is assigned to you, a small business loan calculator will give you a proper idea regarding the same. One can also make use of this loan calculator to get knowledge about the various payments, terms, and rates that will affect your total loan amount. This will help you compare the various options available so that you can get your hands on the most reasonable deal. Benefits Of A Small Business Loan Calculator One gets access to all the good stuff once one decides to go for a small business loan calculator. If you want to start up a business or finance the growth of an existing one, be sure that a business loan calculator is sure to come in handy. So, before going for a professional loan, make sure to check out the potential benefits of this loan calculator: Ease In Repayment If you are facing any issues while calculating the appropriate loan amount and interest rate, a loan calculator comes in handy. Within a matter of minutes, you will be able to decide on various financial matters efficiently. This will also help you in taking business loans for buying new equipment or hiring new employees faster. Get The Best Information At The Right Time The functioning of a small business loan calculator is approved by creditors from all over the country. Anyone can have access to this data from anywhere. This flexibility ensures business owners make the right decisions at the best possible time. Perfect For Your Mobile Since nowadays, the majority of the crowd has access to the Internet on their phones, they will have no problem accessing the small business loan calculator. If you want to ensure proper business financing, there is no need for a computer to compare the different deals. Improve Credit Worthiness You can now make on-time payments that are accurate and reasonable with the help of a small business calculator. Your loan will now be approved at a much more speedy rate, leaving no room for errors. [B-02] The Bottom Line By getting hold of a small business loan calculator, nothing can go wrong in determining the kind of loan you need. With a few easy steps, you will easily have access to the most valuable information regarding loan options, deals, and repayment methods. So, you can make the option of getting a loan simpler and a lot more convenient for you.

08-11-2023

Banking

Easy Steps To Checking Bank Balance Through Account Number

Various chores that once required time and effort now look simple thanks to technological advancement in the digital age. Regarding banking and financial transactions, this is of utmost importance. You may perform various actions with a single click, including money transfer, bank balance check, deposit, and other similar tasks. It’s important to monitor your bank balance because we conduct many daily transactions. One can stay aware of mistakes or scams straightaway by making it a practice of running a bank balance enquiry regularly. Due to digital advancement, an individual can now check their bank account balance in various ways. Email, push notifications, SMS, online banking, UPI, and other methods are all possible. The following methods described below can be used for quick balance enquiry. [B-01] Understanding Account Balances It’s important to be aware of the form of the account balance you are looking at while checking your bank balance. One should be aware that While using the bank’s app or other online procedures, the bank displays the available balance. This typically indicates how much a person may withdraw or spend that day. The available balance could be less or more than what is displayed. The problem is not that the bank displays an incorrect balance. Rather, it hides the pending transactions. It’s possible that the deposits or pending bill payments won’t have cleared by then. Key information required for checking the account balance Bank account number Mobile number registered with the bank Login details for net banking Checking your account balance is a simple step. UPI These days, the most convenient way of bank balance enquiry is through UPI and other banking apps. UPI is one of the easiest and most convenient ways to keep tabs on your bank balance. You can install a UPI app if you have various bank accounts and don’t want to install so many apps. There are various UPI apps available where you can register. To register on UPI, it is imperative to install the UPI app on your mobile phone with your registered mobile number. It auto-detects the accounts related to the number and lets you choose the account you wish to add. The UPI app lets you choose the PIN to make secure transactions. On entering the PIN, you can also transact and view your account balance. Missed call balance Banks provide balance updates when customers use one of their registered mobile phones to make a missed call. You need to call the balance enquiry number from your registered mobile number. Customer Care This method allows you to call the bank to find out the amount. However, if the bank’s system is not automated, this operation cannot be done 24/7. Nowadays, much of the system is mechanized. Once you enter specific facts like bank account information, etc., they will instantly advise you of the balance. Text Messages SMS is yet another practical method for doing a bank balance check. For each transaction, you will immediately receive balance updates along with the amount credited or debited. This only happens if you select the option for SMS notifications while setting up the bank account. You don’t need to take any more steps, such as entering usernames or passwords. If you haven’t chosen this method, stop by the bank office and inquire about the SMS option. Then fill out a form to get updates. Additionally, you may use your registered mobile phone to make a bank balance enquiry by sending an SMS to the bank’s number. Utilise an ATM To check the balance of an account, one can also use an ATM. You only need to go to any ATM and take the following actions: Insert your card into the designated slot. Enter your ATM PIN when asked. Scroll through the options and select “balance enquiry.” It would display the balance. The procedure at different ATMs is largely the same. However, it depends on the ATM at that specific bank. Using your bank’s ATM is recommended because using an alternative ATM may result in fees. You can be charged extra if you use a different ATM after a predefined free transaction limit. Net Banking This approach makes it simple for everyone to make a bank balance enquiry at any time. One must access the bank’s official website and fill out the necessary fields to get started. Using a bank’s mobile app is one option. One must seek options like “Account Access” or “Login” for most of the portals. You must register if this is your first time using the app or website by selecting “The first-time user.” Pre-set balance alerts Ask the bank to send you a notification whenever your bank account has a low balance if you prefer not to check the balance of your account regularly. Your bank will notify you immediately if there is a large withdrawal or low balance. You may adjust the quantity and other factors for these notifications while setting up alerts. Bank Tellers If nothing seems to work for you, you can call the bank and speak to someone in a physical location with regional branches. Compared to automated calls, chatting with a teller differs from other options since you are speaking to someone and not dealing with a machine. You can call a particular number each bank provides to speak with a teller. Unfortunately, access to tellers is becoming increasingly challenging. Since most banks now do their business entirely online, they are less likely to employ tellers, or they might charge you more for calling a teller. [B-02] We hope you found the information on various methods of bank balance checks informative. Experts at Piramal Finance can help you understand how to use banking and other financial services optimally. Piramal Finance also provides loans at attractive interest rates, so browse various options with us.

08-11-2023

What are Top Benefits of Loan Against Property in India

A loan against property, as the name suggests, is the loan you get by pledging your property as collateral. The popularity of such loans stems from the fact that they come with a host of benefits. From a lower interest rate to a longer repayment period, there is more than one reason to consider these loans. So, without further ado, let’s get you familiarized with the benefits of taking a loan against your property. [B-01] Benefits of taking a loan against property Taking a loan against your property comes with a host of advantages, such as the following: Lucrative tax benefits on offer The biggest benefit of taking a loan against your property is that you get tax benefits on your interest payments. Though there are certain guidelines to be followed to receive the tax benefits, given below are the two sections of the Income Tax Act, 1961 that are applicable for this: Section 37(1) – You get the deduction for using the loan against your property for business purposes. Tax benefits can be availed on processing fees and interest rates. Section 24(B) – If you use the loan to buy residential property, you are allowed to claim tax deductions on the interest rate. INR 2 lakh is the highest deduction that you can claim. However, you will have to show proof that you are truly using the money to buy residential property. Get a higher loan amount sanctioned When you take a personal loan against property, you can be sanctioned for a higher amount. Of course, the amount you get depends on a lot of factors, such as whether the property is vacant or occupied, commercial or residential, rented or not, and so on. However, depending on the value of the property, you can get a loan of INR 5 crores or more. This is the most hassle-free way to secure a bigger loan to meet your expenses. It is hard to secure such a high amount through other kinds of loans. An extended repayment tenure Another advantage of taking a business loan against property is that you get an extended repayment tenure. Typically, personal loans have a tenure of five to seven years. If you take a higher loan amount, paying it back within a shorter tenure means huge EMIs every month. However, loans against your property can have a repayment tenure of fifteen to eighteen years. Since you will be paying off a larger sum, this long tenure is particularly helpful. You can pay the money back without feeling the financial burden. The availability of low-interest rates From the lender’s perspective, a loan against your property is a secure option. They face a reduced risk because they can recover the money by making legal claims on the property. Due to this sense of security, the loan against property rates of interest is always lower. Also, the fact that you get a longer repayment tenure further reduces the interest rate for the loan. Therefore, the monthly EMIs are easier to manage. Eligibility criteria are simplified As mentioned before, the lender feels more at ease about giving you the loan because you pledge your property to them. Due to this reason, the eligibility criteria are also much more relaxed for these loans compared to others. Regardless of whether you take the loan for your business or personal uses, the parameters are credit history, minimum income, age limit, and general financial stability. Easier to manage major expenses By taking a loan against your property, you make it easier for you to handle the major expenditure. Things like home purchases, overseas education, renovations, and so on are unavoidable expenses. It would affect your financial situation if you have to pay for all these through your savings. On the other hand, taking a loan would mean you can easily manage these expenditures without the need to empty your pockets. Possible risks to be aware of for loans against property There is no denying that loans against properties come with several advantages. However, you also need to be aware of the risks before you send your loan application. Keep in mind that the sole authority of the property goes to the lender if you default on the monthly payments. The lender has the right to sell your property to get their money back if the need arises. Thus, if you choose to pledge your property, have a solid plan in place beforehand about the repayments. Consider your current income, repayment tenure, and interest rate in coming up with this plan. [B-02] The final note So, if you need a bigger loan amount and have a good repayment plan in place, go ahead and apply for a loan against your property. You will find this loan a lot more hassle-free to manage and pay off than most other options.

08-11-2023