The Pradhan Mantri Awas Yojana is an initiative by the Government of India that aims to provide affordable housing to everyone in India. It allows first-time homeowners in India to get subsidies on their first property purchase. [B-01] What is Pradhan Mantri Awas Yojana? The Pradhan Mantri Awas Yojana is a government scheme that plans to make housing affordable for everybody in India. It offers subsidy on home loans taken for the following: Purchase of a property and construction of a home Purchase of a property Construction of a home Extension of existing house (adding a room, kitchen or bathroom) Only first-time homeowners who don’t have a ‘pucca’ house named after them or their family member are eligible for this subsidy scheme under the Pradhan Mantri Awas Yojana. If you are eligible for Pradhan Mantri Awas Yojana and have applied for a home loan at Piramal Finance, then you can get home loans with extremely low interest rates. Owing to the credit linked subsidy, the interest rates can be as low as 6.5%. Eligibility criteria to get subsidized loan with the PMAY Here are the eligibility criteria that make you eligible for a subsidized home loan with the Pradhan Mantri Awas Yojana. Here are the eligibility criteria that make you eligible for a subsidized home loan with the Pradhan Mantri Awas Yojana. You or your family should not own a ‘pucca’ house in any part of India. In case a married couple is concerned, any one of them or both of them in joint ownership will be eligible for the scheme a single time. You should not have availed any housing assistance from the Central Government or under the Pradhan Mantri Awas Yojana. Employment Type Both salaried and self-employed individuals can apply for a home loan at Piramal Finance, under the Pradhan Mantri Awas Yojana. Under salaried applicants: Any person working in a government institution or a PSU office is eligible under this category. People working at private limited companies, MNCs, NGOs and trusts are also considered salaried applicants. Under self-employed applicants: This category includes self-employed professionals who are doctors, lawyers and chartered accountants. Other than this, self-employed non-professionals and business owners can also apply under this category. Age For salaried individuals – Any salaried individual over the age of 21 can apply for a home loan at Piramal Finance. The maximum age to apply for a home loan is 70, in case of ex-government employees receiving pension. In all other cases, you’re only eligible till your age of retirement. For self-employed individuals – Any self-employed individual between the age of 23 and 70 can also apply for a home loan at Piramal Finance. Documents Required Proof of identity (Aadhar card, voter ID Card, passport, driving license) Proof of residence (Aadhar card, voter ID Card, passport, driving license, utility bills) Proof of income (ITR of the last 2 financial years, financials audited by a chartered accountant, banks statements with salary slips) Documents of the property Co-applicant: A co-applicant is mandatory in certain cases. A co-applicant can be your spouse or a first-blood relative like your parents, siblings or children. They have to be over the age of 18 and a woman, in many cases. [B-02] Key features of PMAY subsidized home loans Credit linked subsidies: With PMAY, you can get subsidies up to Rs. 2.67 lakhs on loans of Rs. 6 lakh or less. This can help you build a home and not spend a fortune. Low interest rates: If your household income is less than Rs. 6 lakhs per annum, then the interest subsidy could be as much as 6.5%. If it is between Rs. 6 lakh and 12 lakh per annum, then the interest subsidy can be 4%. If it is between Rs. 12 lakh and 18 lakh per annum, then the interest subsidy is 3%. Easy application process: Piramal Finance has an extremely simple application process. A dedicated relationship manager will guide you through the entire process.
The Flexi loan is one of today's most popular loan options. You are sanctioned a loan amount where you can withdraw funds as many times as you want within the limit. Unlike a traditional personal loan, you do not get the full amount disbursed immediately in your account with applicable interest. Understanding Flexi Loan A flexi loan is just an overdraft facility. The limit is set, and interest is levied only on the amount you withdrew and not on the complete loan amount sanctioned. You can use the funds for any purpose and also repay the loan as you please. This is a great option for people looking for a flexible personal or home loan option. Benefits of Flexi Loan A flexi loan allows you to use your money when required without filing multiple loan applications. This is one benefit to mention. Have a look at the several benefits that the Flexi loan offers to its borrowers: Interest-Only EMIs:Loan repayment is a matter of concern. With a Flexi loan, you can pay interest as well. Paying off the loan, therefore, becomes easier. Withdraw When NeededThe amount of loan you are sanctioned need not be withdrawn at once. You can withdraw it as per your business investment plans and pay interest only on the amount withdrawn. You can use this amount to repay your debts or pay your home loan EMI. Flexibility in RepaymentYou have the flexibility to repay the loan amount when you want. You can also make no-charge part pre-payments. Low EMIThe option to withdraw funds from the Flexi loan as and when required lowers your monthly EMI. Refrain From Multiple ApplicationsWith traditional loan options, you must file multiple applications for each requested loan amount. However, with a Flexi loan, you can withdraw as many times as you want from the amount limit without submitting multiple applications. It saves hectic paperwork. Instant ApprovalOne of the most essential benefits of a Flexi loan is you get its approval and money in your account within 24 hours. So, it helps you in executing your instant business plans. Documents Required for Flexi Loan at Piramal Finance Just like when you apply for a home loan, Flexi loans require the borrowers to submit a few documents for verification. You can easily apply for a Flexi loan at Piramal Finance by presenting the documents listed below: PAN Card ID ProofAny Aadhaar Card, Driving License, Passport, or Voter’s ID Card. Address ProofAny of – ID proof with the permanent address, telephone bill, water tax, electricity bill, post-paid mobile bill, or property tax receipt. Property Document Sales deed or the letter of allotment NOC from the builder/housing society, possession certificate, detailed construction cost estimation Bank account statement Occupancy certificate in case of the constructed apartment Eligibility criteria for Flexi Loan at Piramal Finance There is a basic set of eligibility criteria that an applicant must fulfill to apply for a Flexi loan at Piramal Finance. Salaried and self-employed individuals have different sets of eligibility criteria. These are as follows: For Salaried Applicants Particulars Criteria Age 21 years to 70 years Employment Type Government InstitutionPrivate SectorPublic SectorMNCs or Related CompaniesPartnership FirmsProprietorship ConcernNGOs or Related Organisation For Self-Employed Applicants Particulars Criteria Age 23 years to 70 years Employment Type Self-Employed Professional like Doctor, Architect, etc.Business OwnerProprietorsPartnersPartnership Firms, etc. [B-02] Bottom Line Applying for loans and fulfilling your financial requirements have become easy with the easy-to-avail Flexi loan options. At Piramal Finance, you can easily apply for a loan online from the comfort of your home or office.
The past few years have observed a drastic increase in the number of people opting for loans. While applying for any type of loan, one of the key parameters that are verified is your CIBIL score. This score is crucial as it helps banks decide the approval of your home loan application. A credit report comprises your CIBIL score that helps banks and financial institutions understand your creditworthiness. This is based on your repayment habits over a period of time. The bureaus typically collect data that includes individual consumers and lending institutions to provide information about your credit history and creditworthiness. A CIBIL score between 750 and 900 is recommended to borrow credit. The higher your score, the more likely you are to get your home loan application approved. A higher CIBIL score can also help you avail of such as higher loan amounts, lower interest rates, and longer repayment tenure. If your credit score is below 675, it is recommended to improve your credit score before applying for a loan. [B-01] Ideal CIBIL Score for a Loan The ideal CIBIL score varies based on the type of loans such as home loans, home construction loans, business loans, and small business loans. For a personal loan, most lenders have a minimum CIBIL score requirement of 750 as it is an unsecured loan. When it comes to a business loan, the lower limit of the acceptable CIBIL score is between the range of 600 to 700. For a home loan, many lenders require a lower CIBIL score requirement than a personal loan, thereby being in the range of 550-600. While meeting this minimum criterion is important, having a good CIBIL score of 750 or above can help increase the chances of approval of your loan application. In addition to increasing your loan approval chances, having a high CIBIL score can also reduce the typical hassle that comes along with having a low CIBIL score. Moreover, the ease of verification and disbursement can also be improved for individuals with a good or high CIBIL score. How to Improve Your CIBIL Score? Improving your CIBIL score can be done in a few ways. By being disciplined and consistent with these steps, you can improve your CIBIl score in no time. Here are 3 ways in which you can improve your CIBIL score. Frequently Check Your Credit Report: The first step is to get your credit report and evaluate it for errors and mistakes. Even if you have been paying on time, there can be scope for error which can affect your score negatively. You must ensure that you have been paying your bills on time at least 5-6 months before you apply for a loan. Pay Your Credit Card Bills on Time: Before applying for a loan, make sure that you have been timely with paying your credit card bills on time for the past six months. If you are consistently late in paying your credit card dues or are maxing out your credit limit, your credit score can be negatively impacted. Be Timely With Your EMIs: To have a good credit score, make sure that you pay your EMIs on loans and mortgages regularly. Running late on these payments can affect your credit score. Banks and lending institutions will look into your credit score to understand your potential repayment patterns. If you have significant debt from other loans, you can consider alternatives such as restructuring your loan. [B-02] In a Nutshell Different loans have a different CIBIL score requirement based on the nature and type of the loan. It can be beneficial to have a good CIBIL score to avoid any hassle during your loan application process and also speed up the process of approval and disbursal.
Home renovations are part of owning a home from time to time. Many people go ahead with home renovation plans to enhance the value of their homes and meet their families' needs. While the need for increased comfort can be one of the most common needs for home renovation, other common reasons are attempts to make the home more eco-friendly and sustainable. There can be many benefits of renovating a home. However, one of the aspects that causes many worries is financial. The financial requirement for renovating a home has been increasing, especially due to inflation. To meet these financial requirements, many opt for a home renovation loan. In this article, we look at the different elements of a home renovation loan and how you can finance your home with one. How to Finance Your Home With a Home Renovation Loan By availing of a home renovation loan with an interest rate and EMI that suits your financial capacity, you can renovate your home in any way you want. It is important to check for certain aspects before purchasing a home renovation loan. Let us have a look at each of these different aspects. Eligibility Home renovations are part of owning a home from time to time. Many people go ahead with home renovation plans to enhance the value of their homes and meet their families' needs. While increased comfort can be one of the most common needs for home renovation, other common reasons are attempts to make the home more eco-friendly and sustainable. There can be many benefits of renovating a home. However, one of the aspects that causes many worries is financial. The financial requirement for renovating a home has been increasing, especially due to inflation. To meet these financial requirements, many opt for a home renovation loan. In this article, we look at the different elements of a home renovation loan and how you can finance your home with one. How to Finance Your Home With a Home Renovation Loan By availing of a home renovation loan with an interest rate and EMI that suits your financial capacity, you can renovate your home any way you want. It is important to check for certain aspects before purchasing a home renovation loan. Let us have a look at each of these different aspects. Eligibility Interest Rate Tenure Tax Benefits Affordability In a Nutshell Availing of a home renovation loan can help you renovate and redesign your home with less financial stress. You can opt for a home renovation loan, ensuring that you meet the eligibility criteria. By meeting the eligibility criteria, you can increase the chances of getting your loan application approved. Moreover, it is also important to check the tenure and interest rate of the home renovation loan before applying to ensure that it aligns with your financial capacity. Interest Rate: Another key factor to check while applying for a home renovation loan is the interest rate offered. The home renovation loan interest rate can determine how much finances you need to repay the loan. It can also be an estimate of the financial burden you may experience. The interest rate you receive on your home renovation loan can also help you calculate the EMI and tenure. Tenure: The tenure of the home renovation loan is also important to consider as it will allow you to understand the flexibility you have to repay the loan. A longer tenure allows you more time to repay your loan with smaller amounts of EMI every month. On the other hand, having a shorter tenure will require you to pay larger amounts of EMI over a shorter period of time. Tax Benefits: With a home renovation loan, you can also experience tax benefits on the interest portion and the loan amount. Under Section 24 of the Income Tax Act, you can avail of tax benefits up to Rs. 1.5 Lakhs on your interest amount. Moreover, if your home renovation loan amount is used on home-related expenses, you will be eligible to avail tax deductions on the principal amount of your loan as well. You can avail of a maximum deduction of Rs. 1 Lakh on the principal. Affordability: The home renovation loan typically provides you access to funds at a lesser interest rate than a typical home loan. Hence, it is considered a much more affordable option than a personal or similar loan. You can also opt for a longer tenure, making the repayment process less stringent. [B-02] In a Nutshell Availing of a home renovation loan can help you renovate and redesign your home with less financial stress. You can opt for a home renovation loan, ensuring that you meet the eligibility criteria. By meeting the eligibility criteria, you can increase the chances of getting your loan application approved. Moreover, it is also important to check the tenure and interest rate of the home renovation loan before applying to ensure that it aligns with your financial capacity.
Everybody dreams of having a home of their own. A home loan from Piramal Finance (PCHF) can help you fulfill that dream. However, many people seem apprehensive about the EMI they must pay for their home loans. Keeping that in mind, Piramal Finance has a home loan EMI calculator. This helps you know about your monthly EMI before opting for a loan. Let us know more about Piramal Finance’s EMI calculator. How can you use the Home Loan EMI Calculator? Here is how you can calculate your home loan EMI with Piramal Finance. Step 1: Visit the official website of PCHF Visit Piramal Finance’s official website. Click on the Calculator tab and select Home Loan EMI Calculator. Step 2: Enter the loan amount The next step is to enter the loan amount you want to borrow. Step 3: Enter the tenure Your loan tenure is the period of time for which you wish to take the loan. Enter your loan tenure in the EMI Calculator. Step 4: Enter the rate of interest Finally, you need to enter the interest rate as mentioned in the Piramal Finance website. It usually starts from 10.5% onwards. Once you enter all the details, the home loan EMI calculator will show you the EMI you must pay monthly. What affects your home loan EMI Primarily, three factors can affect your EMI. Principle amount—The higher the amount you borrow, the higher your monthly installment (EMI) will be. Interest Rate – Your home loan interest rate is directly proportional to the amount you pay for your EMI. The higher the rate of interest, the higher the EMI you have to pay.If your loan's interest rate is fixed, you will pay the same amount every month. However, if your loan has a floating interest rate, you have to pay a low EMI if the rate goes down and a higher EMI if it goes up. Repayment tenor – Your monthly EMI is inversely related to your loan tenor. This means that the longer your loan tenure, the lower your EMIs are. However, it is important to remember that a longer tenor also means higher interest rates. How does a home loan EMI calculator help? Having a home loan EMI calculator can help you in many ways. Helps you choose a home: The EMI of your home loan is very much dependent on the principal amount you borrow. Once you’re going through the catalogue of potential homes, you can use the EMI calculator to estimate the EMIs by entering the value of your potential home. You can look for better options if the EMI amount is too much. On the other hand, if you find that Piramal Finance’s low interest rates make the monthly EMIs affordable, you can look for bigger and better homes. Know what you’re signing up for: Once you have a rough estimate of the value of your new house, you can use the EMI calculator to know the monthly EMI you might have to pay. This will help you implement a better financial plan to save up for the EMIs. Choose a comfortable repayment tenor: Piramal Finance has a flexible loan tenor structure. This means that you can choose the tenor of your loan, depending on what you’re comfortable with. If you want to pay less on EMIs, you can choose a longer tenor and vice versa. [B-02] Why take a home loan from Piramal Finance A home loan can fulfill your dream of owning a home. Here is why Piramal Finance is the best place to get a home loan from. Quick and simple application process: The application process for a home loan is the simplest at Piramal Finance. All you need to do is fill in the form with your details and submit the required documents, and a dedicated relationship manager will contact you to guide you through the process. Minimum documentation: You need only submit proof of your identity, address, and income along with the property documents. For large loan amounts, you need only submit proof of your identity, address, and income along with the property documents.
The outbreak of the COVID-19 pandemic has made us realise the importance of owning a house. Apart from being a valuable asset, it is also an investment for the future. One advantage that COVID-19 has brought with it is that the home loan interest rates today have dropped, and interested people can buy a property of their own. While moving into your own house is a great achievement, there are many things that will need your attention before you finalise a deal. One of the biggest decisions that the owner needs to make is whether to go for an under-construction house or a ready-to-move-in place. Both properties have their own benefits and drawbacks, and therefore, it is totally up to the owner which one to prefer. However, to choose one of them, it is very important to know both of them first. Understanding Under Construction Home Under-construction houses, as the name suggests, are houses that are still not built. They are generally located in areas that are not well established, and therefore, these houses' prices tend to remain 10-15% lower than ready-to-move properties. However, this factor may vary according to the house's location and the builder's plan. Buying an under-construction house will allow you to plan everything in and around your house, and all of this, combined with low home loan interest rates, is the best deal to have. Understanding Ready to Move Home A ready-to-move house is built, and you can move in whenever possible. A ready-to-move home has many benefits that a buyer may find very attractive. First of all, a buyer gets to see what he is going to pay for, how the surroundings are, neighbours, whether the house is furnished as per his/her taste or not, etc. Secondly, there is no waiting period associated with ready-to-move houses, and therefore, it is preferred by buyers who wish to invest quickly. Under-Construction Vs Ready to Move Home – Things to Consider Each of these aforementioned houses is best in its own way. However, taking out a home loan and buying your own house is not an everyday job, and here are some key points you should consider. Estimate your budget and then look at which house matches your expectations as well as your budget Select the location looking at your daily travel routes Make sure the property has all the important documents and licenses needed for the deal Read all the documents carefully before applying for a home loan. Under-Construction Vs Ready to Move Home Parameters Under Construction Home Ready to Move Home Formalities Less documentation is required as compared to ready-properties There are a lot of documentation procedures and other legal processes to be completed Price Comparatively cheaper than the ready-to-move houses but depends upon the location Generally, on the higher size Risk levels Low chances of risk. The buyer’s due diligence is important There is a high level of risk as the property may have been sold to more than one owner in the past. Due diligence of the buyer is mandatory Ease of selling It is often difficult to sell an under-construction property Ready-to-move properties are easily sellable. Source of income It will take time before one can actually use the house as a source of income Ready-to-move houses can be quickly put on lease, and the money can be used to pay the EMI of the home loan. Payment As the property is still under construction, the full amount might not be demanded at once but would be paid in intervals The buyer would be asked to pay the whole amount at once [B-02] Conclusion Buying a house is an important phase in everybody’s life and should never be done in a hurry. No matter how occupied you are, you must understand the features of both properties to choose the one that suits you best. After you select your dream house, move on to the next step, i.e., home loan. If you need a home loan, visit your lender's online portal and read about the loan features, interest rates, and other important information. Fill out the form quickly, submit it, and await your home loan approval.
Investing in a house is a major decision that involves a lot of factors to take into consideration. You need to first zero down on the locality, the surrounding amenities, apply for a home loan, make the upfront payment and sign the agreement. Then you get possession once the property is ready. However, getting your house physically in your name does not legalise the matter. Your name needs to be registered as the owner of the property in Government records as well. This is where Stamp Duty comes in. [B-01] What is Stamp Duty? Stamp Duty is a tax that is levied by the Government on any asset transaction that takes place, especially that on property. It is a legal document that acts as evidence that a transaction of a property has taken place between two parties. It is a way of boosting government revenues for carrying out government activities. It is payable by either the buyer or the seller under Section 3 of the Indian Stamp Act of 1899. In case you delay in paying the tax, you will have to pay a penalty for the same. When to Pay a Stamp Duty? A Stamp Duty is to be paid before the signing of the legal agreement, on the day or latest by the next day, failing which a penalty is levied. In most cases, it is the buyer who has to pay the stamp duty charges. However, if it is a case of property exchange, both the parties, the buyer and the seller, have to bear the burden. A Stamp Duty is only approved when you sign by cancelling the stamp and writing your name or initials across it. This is to ensure that the stamp is not used for any other instrument or document and the sign is visible on the face of the stamp. Calculating Stamp Duty The rate of stamp duty varies from state to state. When a flat or property is transferred by a nominee to legal heirs, the instrument or document needs to be stamped according to the market value. There are a number of parameters that are taken into consideration while determining Stamp Duty on any property. For example, in some states the stamp duty and registration charges are calculated based on the total area of construction for individual homes and built up area when it comes to flats. The following are certain things to understand in order to calculate Stamp Duty. The ‘Guidance Value’ or the minimum value at which the house, plot or property in question should be registered and which is decided by the government is to taken into consideration. The stamp duty and registration charges are indirectly proportional to the property’s market value. Stamp duty charges are also dependent on the location of the property-urban or rural. Central and state taxes are also levied on stamp duty and registration charges. The Final Word If you are a prospective buyer looking out for a house, the Stamp Duty charge is one of the things you should take into account which makes your budget. So, even before you get ready for taking possession of your property, check the Stamp Duty calculator by authentic online financial institutions like PCHF to have a fair idea about how much you need to keep aside for the same. [B-02] Summary Stamp duty is one of the most important things to keep in mind while having a property transferred in your name. It is a legal document with the government that would have your name registered as the owner of the property. Hence, it is essential to pay Stamp Duty and Registration fees on time, to ensure that you do not end up spending on penalty charges.
Micro, small, and medium enterprise loans are recognized as the best unsecured credit option for start-ups and small businesses. NBFCs and banks grant these loans without any collateral requirements. The tenure of these business loans will be a decision of the respective bank, and the interest rate will depend on the CIBIL (credit score) of the individual applying for the loan. For your small business to endure the tough business conditions and witness adequate growth, capital is required in abundance. MSME business loans have the potential to secure your business from immense losses. The financing will offer your business the right amount of growth it needs to get through and make your cash flows consistent and better with time. [B-01] In this article, we will help you learn comprehensively about MSME loans and why they are the most useful for small business owners. 1. Assorted Utilities All the financial needs can be met through MSME loans. These needs include recruiting efficient and skilled staff, meeting any type of financial crunch, purchasing raw materials, and maintaining the stock. The lenders put no restrictions on utilization purposes. You can use it to meet the daily expenses of your business or to buy a huge plant and machinery, and the decision will be yours. 2. Prominent Accessibility In urgent financial needs, MSME loans come to the rescue with their quick sanction process. The money will show up in your business’s bank account in just a day or two. Sometimes, the banks and other lenders only process the loans within 24 hours. They will also offer online access for you to keep track of your loan statements. Also, they charge low down payments, resulting in more cash in hand. This will aid your business in taking more risks and trying out new ventures to take them to new heights. 3. Retain Control of Your Company When you demand funds from venture capitalists or other large-scale financial institutions, you will have to deliver a portion of your business to them. This indicates shared control of your business by including them in your decisions for growth and expansion. However, in the case of MSME loans, the bank or the NBFCs do not demand any stake in your business. You can use all the funding without worrying about not being able to retain total control of your business. 4. Business Loan Without Collateral Requirements As discussed above, these business loans are unsecured. This means that you do not have to keep any asset as collateral against the loan that you have availed. The lenders always agree to give this concession to small businesses because they are well aware that small businesses have limited assets. Asking for the assets they own as collateral would hamper the productivity that the business currently has. Therefore, you can gain a loan without having to worry about losing an asset that adds value to your small business. 5. Affordable Rate of Interest The lenders prefer to ensure that the cash inflows gained through the loan are not mostly spent on paying loan interest. This is the reason why they sanction these loans at a lower rate of interest. Low rates of interest also facilitate immediate down payments on behalf of small businesses. 6. Short Business Loan Tenures The MSME loans are mostly lent out for a short period of time. This helps the small business owners be free from any long-term commitments and keep a close track of the cash flows incurred in their day-to-day business. This would also motivate them to allocate the funds rationally to facilitate both business functioning and loan repayment. 7. Getting Rid of Cash Flow Struggles The MSME loans work toward helping small businesses to free themselves from the financial crunch they may face in their day-to-day functioning. They help meet the daily requirements that arise due to the shift in demand and supply market forces. Also, with the quick sanction benefit that these loans offer, you can use them to meet any emergency expenses. Eligibility Criteria for MSME Loans ● Your business should have had a turnover of a minimum of Rs 90,000 in the past three months of the loan application. ● Make sure it is a registered business, and you have a proper address proof for it. ● Keep all your Income Tax and GST documents ready for the processing of the loan. [B-02] Apply For Your Business Loan Today! Before you start the application process for your MSME loan, make sure to calculate the down payment amount along with interest. Help your small business become stable and grow to the maximum of its potential with the help of these loans. Also, keep in mind that a good credit score is essential to avail of a loan at a lower interest rate.
What is an IPO? There are thousands of companies that currently trade on the Indian stock market. These companies trade on two stock exchanges – the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). But how do they enter the stock market? Every company starts on the stock exchange as an Initial Public Offering (IPO). Before an IPO is launched, a company only has a small number of private shareholders. This includes the founding members of the company and some angel investors. Retail investors (such as you) cannot buy private company shares. You can purchase shares only when the company goes public. By launching an IPO, companies offer a portion of their shares to the public. These shares can then be traded in the stock market. An IPO plays an essential role in the growth of a company. During an initial public offering, a private company becomes public. This is done to attract investors and help the company raise capital. The money invested by the shareholders helps the company expand its operations and generate profits. IPO listing also helps to create brand awareness among retail investors and the general public. As a result, there are several upcoming IPOs this season. Read on to find out more about IPOs and how you can select the best IPOs to buy. [B-01] Types of IPO A company has two options when launching an IPO for the public. An initial public offering can be launched as a fixed price or book-building issue. In a fixed price issue, the price of shares is fixed. Every financial aspect of the company is evaluated before fixing a particular price. A company’s quantitative and qualitative analysis helps set up a fixed price. This price is usually lower than the market value. So, retail investors are likely to make a profit from the IPO. In a book-building issue, there is no fixed price for the shares. The company decides on a price band or a range for its shares. Then, the retail investors can bid for these shares. You can bid on the desired price that you would like to pay. The company evaluates the bids. Then, they set up a fixed price for the shares. How to Find the Best IPOs to Buy So should you invest your money in every IPO you can find? The answer is no. Not every IPO is going to make money for you. The wrong investment can even make you lose your money. The benefits and risks of investing in a new company go hand in hand. So you need to be an informed investor and learn about finding the best IPOs to buy. Investing in profit-making IPOs is always a good move for retail investors like you. But the tricky part is to find out which companies will make profits in the future. So spend some time researching different IPOs. Make sure that the information you’re getting is from credible sources. Understand the nature of the company’s business. As an investor, you must ensure that their business activities have clarity. Take a look at the promoters and the management of the company. They are the people responsible for taking the company forward. So make sure that your investment is in safe hands. As an investor, figure out the company’s strategies and key strengths. This will give you an idea about the future prospects of the company’s business. As a result, you can make an informed decision about your position in the company. This will help maximize the profits of your investment. Another thing you need to keep in mind is the risk factors for the company. Find out if there are any risks or liabilities associated with the company. Risk factors can pose a threat to the company’s business in the long run. How to Purchase an Upcoming IPO The process of purchasing an available IPO is fairly simple. You can take help from your broker or even do it yourself. The first step you need to follow is to have a trading account. Once the IPO is listed, fill in the required details. Pay for the number of shares that you would like to buy. Your money will be on hold till the allotment date. IPOs are generally oversubscribed. So it is a matter of luck that the shares will be allotted to you if you get the shares! But if the shares are not allotted, you would get the entire amount refunded to your bank account. Find out more about the upcoming IPOs in the last quarter of 2022 and research them. Consider investing in a company as per your risk profile and investment goals. [B-02] A Closing Thought Making suitable investments is an essential part of growing your wealth. For a beginner, all of this can seem tricky. So continue learning about the stock market. There are several free resources available to improve your knowledge. Be persistent. Soon, you’ll start making progress in this money-making field. Do not invest in an IPO just because it’s popular among investors. Many companies are overhyped. So, do your research before investing. Study the fundamentals of that particular business. Take help from established platforms to make financial decisions about upcoming IPOs. You can also consult a financial advisor in the beginning. Professional advice can help sort your finances. They can guide you as you start your investment journey. Then you can continue to upskill yourself and grow your finances. Are you looking for similar finance blogs? Visit the Piramal Finance website and help yourself to the knowledge of wide-ranging financial products and services, especially credit cards, trading stocks and personal loans.