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PPF Interest Rate: How to Calculate Returns

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

08-11-2023

Business Loan

List of Documents Required For Small Business Loan

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

08-11-2023

Home Loan

Types of Home Loans in India

Introduction to Home Loans in India The Indian housing finance market has evolved to offer a range of home loan products, catering to the varied needs of borrowers. Home loans play a pivotal role in enabling individuals to acquire, construct, or renovate properties, making homeownership more accessible. Standard Home Loan A standard home loan is designed to assist individuals in purchasing a residential property, whether it's a new construction, an under-construction property, or a resale. This is the most common type of home loan availed by homebuyers. Eligibility Criteria Eligibility for a standard home loan typically depends on factors such as the applicant's income, credit score, age, employment stability, and existing financial obligations. Lenders assess these parameters to determine the borrower's repayment capacity. Key Features and Benefits Loan Amount: Up to 75-90% of the property's value, depending on the lender's policies and the borrower's profile. Tenure: Generally ranges from 5 to 30 years, offering flexibility in repayment. Interest Rates: Can be fixed or floating, with rates varying across lenders. Tax Benefits: Borrowers can avail tax deductions on both principal and interest repayments under sections 80C and 24(b) of the Income Tax Act. Home Construction Loan Home construction loans are intended for individuals who own a plot of land and wish to construct a residential property on it. Unlike standard home loans, these loans cater specifically to construction purposes. Eligibility Requirements Applicants must own the land on which they plan to build and provide detailed construction plans, cost estimates, and necessary approvals from local authorities. Lenders evaluate the borrower's financial stability and the feasibility of the construction project. Disbursement Process and Stages The loan amount is disbursed in phases, corresponding to the progress of the construction. Common stages include: Foundation Level: Initial disbursement upon laying the foundation. Plinth Level: Subsequent release after completing the plinth. Roof Level: Further disbursement upon reaching the roofing stage. Completion: Final installment upon full completion of the construction. This phased disbursement ensures funds are utilized appropriately at each construction stage. Land or Plot Loan Land or plot loans are designed for individuals aiming to purchase a piece of land for residential construction. It's important to note that these loans are solely for purchasing residential plots and not for agricultural or commercial land. Eligibility Criteria Eligibility factors include the applicant's income, creditworthiness, and the property's location. Lenders may have specific stipulations regarding the commencement of construction within a certain period after purchasing the plot. Terms and Conditions Loan-to-Value (LTV) Ratio: Typically lower than standard home loans, often around 70% of the plot's value. Interest Rates: Generally higher due to the increased risk associated with land purchases. Tenure: Usually shorter, ranging from 10 to 15 years. Home Improvement Loan Home improvement loans provide financial assistance for renovating or repairing an existing residential property. This can include activities like painting, flooring, waterproofing, and upgrading fixtures. Eligibility and Documentation Homeowners with a clear title to the property are eligible. Required documents often include proof of ownership, income statements, renovation plans, and cost estimates. Benefits and Limitations Benefits: Enhances the property's value and living conditions; tax benefits may be available on interest payments. Limitations: Loan amounts are typically smaller, and interest rates may be slightly higher compared to standard home loans. Home Extension Loan Home extension loans are intended for expanding an existing residential property, such as adding new rooms, floors, or balconies to accommodate a growing family. Eligibility Criteria Borrowers must own the property they wish to extend and provide a clear property title. Lenders also assess income stability, creditworthiness, and detailed extension plans. Key Features Loan Amount: Based on estimated extension costs and borrower eligibility. Interest Rates: Comparable to standard home loans, but may vary across lenders. Tax Benefits: Interest payments qualify for tax deductions under Section 24(b). Flexible Repayment: Can be structured like a regular home loan, with EMI-based repayment. Top-Up Home Loan A top-up home loan allows existing home loan borrowers to borrow additional funds over and above their original loan amount. It is commonly used for renovations, personal expenses, or other financial needs. Eligibility Requirements Borrowers with an ongoing home loan and a good repayment history are eligible. The loan-to-value (LTV) ratio and outstanding loan amount play a role in determining the approved top-up loan amount. Advantages and Considerations Lower Interest Rates: Compared to personal loans, top-up loans have lower rates. Flexible Usage: Can be used for any purpose, including home renovation and medical emergencies. Tax Benefits: If used for home-related expenses, tax benefits may apply under Sections 80C and 24(b). Repayment Tenure: Typically aligns with the existing home loan tenure. NRI Home Loan Purpose and Target Audience NRI home loans are designed specifically for Non-Resident Indians (NRIs) who wish to buy property in India. These loans help NRIs invest in residential real estate without physically being present in the country. Eligibility Criteria for NRIs Must be an NRI, PIO (Person of Indian Origin), or OCI (Overseas Citizen of India). Income verification from overseas employers or businesses. Valid passport and work permit required. Key Features and Benefits Loan Tenure: Typically 5 to 20 years. Higher Interest Rates: Slightly higher than regular home loans due to associated risks. Repayment: Must be done through NRE/NRO accounts in India. Tax Benefits: NRIs can claim tax deductions on home loan interest under Indian tax laws. Pradhan Mantri Awas Yojana (PMAY) Loan Overview of PMAY Scheme Pradhan Mantri Awas Yojana (PMAY) is a government initiative aimed at providing affordable housing to economically weaker sections through subsidized home loans. Eligibility Criteria Applicable to first-time homebuyers from low- and middle-income groups. Must meet income criteria as per PMAY guidelines. Property must be located in an eligible urban or rural area. Subsidy Details and Application Process Interest Subsidy: Up to 6.5% under the Credit-Linked Subsidy Scheme (CLSS). Loan Amount Limit: Varies based on income bracket. Application Process: Apply through approved banks and financial institutions. Composite Home Loan Concept and Applicability A composite home loan combines the purchase of a plot and subsequent construction costs into a single loan. It is ideal for individuals who wish to buy land and construct a home immediately or within a set period. Eligibility Requirements Must own or be in the process of purchasing a plot. Construction must start within a specified time, typically within 2-3 years. Benefits and Limitations Single Loan Structure: Eliminates the need for separate land and construction loans. Lower Processing Fees: Compared to taking separate loans. Construction Delay Risks: If construction is delayed, lenders may impose penalties. Conclusion India offers a variety of home loan options catering to different financial needs. From standard home loans and construction loans to specialized products like NRI home loans and PMAY subsidies, borrowers have a wide range of choices. When selecting a home loan, it’s essential to consider factors such as interest rates, loan tenure, eligibility, and specific requirements like construction needs or property location. Comparing multiple lenders and understanding loan terms can help borrowers make informed decisions that align with their financial goals.

08-11-2023

Business Loan

How to avail of a collateral-free business loan in India?

When you require a business loan, you can opt for many options. Some of the available loan types are term loans, bridge loans, working capital limits, and several others. Although there are several ways in which you can obtain a business loan in India, you must be if you are ready to provide the collateral or not. As per the rules of prominent lenders, business loans above a certain value need a provision of collateral. The reason is the reduced risk for the lenders. If the borrower fails to pay back the loan amount on time, the lender can use the collateral to recover the debt. Therefore, the borrower will lose hold of the asset given as collateral. A collateral need not just a house or a car, some lenders also accept bonds, equity shares, gold, and other assets as collateral. Owing to these reasons, collateral-free business loans are gaining popularity. Herein, you can avail of a business loan without any need to provide security. Read on to learn more about these loans and how you can benefit from it. [B-01] Can I get a business loan without collateral in India? Yes, you can get a collateral-free business loan. Such debts are also known as unsecured loans. It means you are not giving any security to the lender; hence, there is no chance of losing your assets. However, certain rules should be taken into account when availing of a collateral-free business loan in India. Things to remember about an unsecured business loan in India You should know that when you apply for a collateral-free business loan, you may be unable to get the exact amount. Since there will be no security, most creditors limit the maximum amount for such loans. The interest rate on collateral-free loans will be high compared to a secured loan. This is because the lender will adjust the interest as per the risk involved. Collateral-free business loans for MSMEs are quite risky. Hence, lenders require a lot of papers to process this loan. You will have to submit proof of your income in the form of IT returns, bank statements, Form 16 etc. You must have a credit score of above 700 to avail of this loan. If you cannot submit the required papers, the chances of loan rejection are higher. You have to remember that business loans with collateral are not flexible in nature. If you fail to pay one EMI, you will be charged late payment interest on top of the usual loan interest. Similarly, you might not be able to negotiate regarding any changes to the repayment term. Collateral-free loans also come with various charges that will increase your financial burden. For instance, you might get charged for loan prepayment, foreclosure, settlement, etc. Therefore, learning about the charges beforehand will help you decide if you want to go with an unsecured loan. How to avail and unsecured loans in India for your business? Before making any decision, you should know the process of availing of a collateral-free loan. If you are unaware of the same, you might get into trouble later. To help you with the process, here are details of the entire process, from loan application to approval and payment: – First, you need to find the best lender you want to collaborate with to take the loan. The lender needs to be trustworthy and licensed. Check the reviews and feedback from past clients or the portfolio to understand what clients the creditor dealt with. It would be best if you also consider the reputation of the lender. It would be best to go with PSUs because they are directly under the supervision of the government and offer minimal risk-associated loans. You also need to check the type of unsecured business loans they provide. Some creditors, mostly private ones, offer only unsecured personal loans that you can use as business credit. On the other hand, if you opt for banks and NBFCs, most of them offer collateral-free business loans. You will need to submit your business license and registration number, GST ID, bank statements, and many such documents. Knowing the types of unsecured loans will help you make a well-informed decision without any concern. Ensure to select a creditor that offers business loans with low-interest rates and high loan amounts. Since you are opting for unsecured loans, the interest rates will be high, and that’s something you have to deal with. You must also ensure that the lender is willing to offer a loan amount that meets your need. There is no need to get a loan if the amount is not enough to meet all your needs. Then log on to the website of the lender and complete the online application process. here you must give all your details and upload the papers as required. If your profile meets their rules, the lender will get in touch with you to confirm the proposal. After you agree to the terms, the loan process will be completed and the amount will be sent to your account. Your repayments will start from the next month and the amount will be debited to your account on a given date. Kindly ensure that the EMI amount is present in the account at least two days before the due date. [B-02] Conclusion There are so many different ways in which you can opt for a collateral-free business loan for MSME. After reading the information given above, you will be in a better position to make a decision regarding opting for collateral-free business loans for MSME, along with the process of getting one for your business. If you still have any questions, you can contact the experts at Piramal Finance. They offer various types of business loans to help you expand your business without any issues.

08-11-2023

Home Loan

How To Make Home Credit Loan Payments Online?

If you need cash immediately, a personal loan from Home Credit is the perfect option since it is so simple to qualify for. A personal loan may be utilized for a variety of purposes, including an unexpected medical expenditure, a dream trip, or much-needed house repairs. You may apply for a Home Credit loan payment online from the comfort of your own home or at work. If you satisfy the conditions and provide the required papers, Home Credit will grant you immediate online approval for a loan of up to Rs. 2.4 lakh. [B-01] Aspects of a Home Credit Loan Payment Online Loan applications for this sort of assistance must be submitted online. As a result, you can be certain that you will not have to wait long in line to get the funds you want. This plan’s application procedure is simple since it may be completed at home at any time of day or night. People who seek a credit advance may borrow up to Rs. 5 lakhs on flexible conditions and Can get it easily. When a customer applies for a cash loan via Home Credit, they may expect to hear back relatively immediately. This is because the whole loan application process may be completed online, making loan approval significantly quicker. Because the organization offers an easy-to-use loan application platform, obtaining one of these loans will be fast and uncomplicated. If the application is completed and authorized online, the loan amount will be sent to the borrower’s bank account as soon as possible. A borrower may be able to get cash rapidly via this program in the event of an emergency. Home Credit Cash Loans may be applied for entirely online, eliminating the need for applicants to bring in physical documentation to establish their identity. If a consumer wishes to apply for a loan online, they just submit digital copies of the necessary papers. How to use the official website for Home credit loan payment Fill out the loan agreement and double-check your calculations. Following that, you’ll be sent to a website that explains when and how to do your Home Credit loan payment online. To complete the purchase, use a debit card or another method of online payment. We will give you a one-time password to the phone number you provided when you registered. Enter your transaction password or one-time password (OTP). Once your money has been processed, you will get a confirmation email or text message. Homeowners can repay their Home credit loan payment using the mobile app. Any Android user who has the Home Credit India app installed on their device can access the app from the Google Play Store and use it to make a Home credit loan payment whenever and wherever they choose. The following is a list of the steps that you need to take to pay your Home credit loan payment: You will find the response if you navigate to Home Credit or if you use the Home Credit app that is available for your mobile device. Fill in either the number of the loan account that you have or the phone number that you used to establish the loan. To complete the transaction, simply click the “Pay” button. You are free to choose how you would like to make payment for this. A verification text message should be sent to your phone within the next few moments. You can make cash payments toward the monthly instalments (EMIs) of your Home Credit personal loan at any Axis Bank, ICICI Bank, or India Post location that is listed on your statement. If you want to repay a loan from Home Credit, pay EMI online or you can go to any branch of a bank that specializes in assisting customers with issues of this nature to get the assistance you require. Making A Home Credit Loan Payment Using Mobile Wallet It is possible to expedite the process of paying off the Home Credit India EMI balance by transferring the necessary funds through PayTM or PayU. You are now able to check the statement for your Home Credit Personal Loan while you are on the go, thanks to the Home Credit India mobile app. To make a Home credit loan payment using EMI, the following steps need to be taken: If you are interested in utilizing Home Credit EMI, pay online by visiting their website or searching for it within a mobile payment app. Fill in either the number of the loan account that you have or the phone number that you used to establish the loan. To complete the transaction, simply click the “Pay” button. You are free to choose how you would like to make payment for this. The discussion is over now. A verification text message should be sent to your phone within the next few moments. You can obtain a copy of the statement that pertains to your home equity loan right here. With the Home Credit India app, you can check the status of your loan whenever you want and from any location, you happen to be in. [B-02] Conclusion Home credit loan payment is easy and simple. To know more about it, you can contact Piramal Finance, who will give you expert advice on what to do and how to do it easily.

08-11-2023

Personal Loan

How to Get a Loan on an Aadhar Card Only?

In today's fast-paced digital world, financial emergencies can arise at any moment. Whether it’s a medical expense, urgent home repair, or unplanned travel, having access to quick credit is often essential. Fortunately, with the evolution of digital lending in India, getting a personal loan using just your Aadhaar card is now easier than ever. This guide provides a detailed walkthrough on how to apply for a personal loan using your Aadhaar card, what documents are required, eligibility criteria, tips for faster approval, and the benefits of Aadhaar-based e-KYC loans. What Is an Aadhaar-Based Personal Loan? An Aadhaar-based personal loan is a type of unsecured loan where your Aadhaar card acts as the primary KYC document. Lenders use the Aadhaar details to verify your identity, address, and other demographic data through e-KYC, enabling a paperless and instant loan process. Unlike traditional loans that require multiple physical documents and bank visits, Aadhaar-linked loans can often be approved and disbursed within 24-48 hours, and in some cases, instantly. Why Aadhaar Card Is Key to Getting Instant Personal Loans The Aadhaar card, issued by UIDAI, is a universally accepted identification document in India. It contains your biometric and demographic data, making it a powerful tool for digital identity verification. Key reasons Aadhaar makes loan processing faster: E-KYC facility: Lenders can verify your identity in real-time using Aadhaar OTP or biometric authentication. Digitized process: Eliminates the need for physical document submission and manual verifications. PAN linkage: If your Aadhaar is linked to your PAN and bank account, loan approvals can be even faster. Eligibility Criteria for Aadhaar-Based Personal Loan Even though the process is simplified, lenders still assess your creditworthiness before approving a personal loan. Here are common eligibility requirements: Criteria Description Age Between 21 and 60 years Citizenship Indian resident Employment Salaried or self-employed Minimum Income ₹15,000 to ₹25,000/month (varies by lender) Credit Score Minimum 650+ (for most lenders) Aadhaar Linkage Aadhaar should be linked with your mobile number and PAN Tip: If your Aadhaar isn’t linked to your phone number, complete the update at an Aadhaar Enrolment Centre to access e-KYC features. Documents Required In many cases, your Aadhaar card alone can be enough for KYC, but some lenders may ask for additional documents based on their internal risk policies. Here’s a general list: 1. Mandatory Documents Aadhaar Card (as identity and address proof) 2. Additional documents (as needed) PAN Card (for credit assessment) Income Proof: Salaried: Latest salary slips or bank statements and ITR, GST filings for self-employed Photograph (passport-size) Cancelled Cheque (for disbursal purposes) How to Apply for a Personal Loan Using Aadhaar Card Here is a step-by-step guide for applying: Step 1: Start your loan on the Aadhaar Card application. Step 2: Enter your mobile number linked to your bank account. Step 3: Enter the OTP received on your mobile number. Step 4: Enter the required documents, such as the Aadhaar and PAN cards, and verify them. Step 5: Bank account verification. Step 6: Income Verification. Step 7: Check the Loan Final Offer, Accept, and continue the final process. Benefits of Using Aadhaar for Personal Loans 100% Digital Process: Apply, verify, and sign digitally without stepping out. Quick Verification: Aadhaar-based e-KYC speeds up identity checks. Fewer Documents: Minimal paperwork is needed. Instant Disbursal: Funds in your bank within hours (if eligible). Improved Access: Aadhaar enables even semi-urban and rural borrowers to access credit. Factors That Influence Loan Approval Even with Aadhaar-based processing, lenders evaluate the following before approving your loan: Credit Score (CIBIL or Experian): A higher score increases your chances. Repayment History: Existing EMIs or defaults can affect approval. Income Stability: Salaried or consistent income stream preferred. Employer Profile: MNCs and government employees are seen as lower risk. Debt-to-Income Ratio: Ideally below 40%. Common Mistakes to Avoid To ensure a smooth approval process, avoid these errors: Mistake Why It’s a Problem Aadhaar not linked to mobile Fails e-KYC OTP verification Low credit score Leads to rejection or high interest Incomplete application Slows down processing Uploading unclear documents Verification delays Applying with multiple lenders simultaneously Can hurt credit score Is It Safe to Use Aadhaar Online for Loans? Yes, if you’re applying through RBI-registered lenders or trusted platforms with SSL encryption, your data is safe. Always ensure: The site uses HTTPS The lender is NBFC or bank authorized by RBI You don’t share OTPs or sensitive info via SMS or calls Pro Tip: Never upload Aadhaar to unknown websites or share OTPs with unverified agents. Interest Rates and Charges Interest rates for personal loans on an aadhaar card vary depending on your credit profile and the lender’s policies. Parameter Typical Range Interest Rate 10.5% to 24% p.a. Loan Amount ₹10,000 – ₹25,00,000 Tenure 6 months to 60 months Processing Fee 1% to 3% of loan amount Prepayment Charges 0% to 5% (depending on lender) Always read the loan agreement before accepting to understand the charges involved. Tips to Improve Your Chances of Loan Approval Maintain a Healthy Credit Score: Pay bills and EMIs on time. Link Aadhaar with PAN and Bank: Ensures faster validation. Avoid Frequent Loan Applications: Apply only when needed. Choose the Right Tenure: A longer tenure can reduce EMIs and improve approval odds. Verify All Details: Errors in application forms can delay approval. Can You Get a Personal Loan with Aadhaar Only – No PAN? Some lenders offer micro-loans or small-ticket personal loans (under ₹50,000) using Aadhaar only. However, for higher amounts, PAN is generally mandatory due to: Credit score checks Regulatory requirements Tax compliance If you don’t have a PAN, apply for one through the NSDL or UTIITSL portal. It’s free and quick. What to Do If Your Loan Is Rejected Loan rejection isn’t the end of the road. Here's what you can do: Check your credit report for issues or discrepancies. Improve your credit score by paying off existing debts. Apply with another lender offering lenient eligibility. Opt for smaller loan amount and gradually build your credit. Consult your bank/NBFC – they may suggest alternatives. Final Thoughts: Should You Use Aadhaar for Instant Personal Loans? Absolutely, if you need quick, hassle-free access to funds, Aadhaar-based personal loans are a great option. Just ensure you apply with reputable lenders, keep your documents ready, and maintain a solid credit profile. By leveraging Aadhaar’s digital infrastructure, you not only save time but also enjoy a more transparent, paperless borrowing experience.

08-11-2023

Other

Complete Guide For First-Time Home Buyers on this Diwali

Buying a home is a dream for many. It is both a financial and emotional investment. People work extra hard to finally be able to purchase a home of their own. If you have bought real estate before, you know it can be a daunting task. You need to do a great deal of research before investing such a large amount of money. From deciding on the type of property to getting the right home loan, a home buyer needs to go through a lot. And if you are a first-time home buyer, you might not know what areas you need to cover. Knowing all the requirements in advance is the best way to go. That is why we have curated this guide for first-time home buyers to make the process less ambiguous. Let’s take a look at the things you need to check before buying a house. [B-01] Type of Property The first step is to decide what kind of house you want. Villas, apartments, bungalows, penthouses, and many other types of residential properties are available on the market. In bigger cities, apartments, or flats, is one of the most common types of property people invest in. You must decide what type of house you want based on your needs and budget. Depending on the needs of the family, select a size that suits you best. The size is generally defined by terms like built-up area or carpet area. For more transparency, RERA has made it mandatory for builders to disclose the size of the property in the carpet area. Another thing to consider as a home buyer is whether you are going to live in the house or buy it for investment purposes. Budget and Financial Planning Another very important factor for first-time home buyers is budgeting and finances. Depending on the type of property, their prices may vary. What you need to do is assess your finances. Know your monthly income from all sources as well as your expenses. Consider your debts and liabilities. Check your savings, investments, and emergency funds. These points will give you a fair idea of what is affordable to you. Make a realistic budget based on this. As a first-time home buyer, you should also look into various government programmes and tax breaks. You can check the eligibility criteria for the Pradhan Mantri Awas Yojana (PMAY). The government also provides tax concessions under Section 80C. Knowing this beforehand can help you save a significant amount. Another thing to consider while budgeting is the additional costs involved in the home-buying process. These costs may include: Stamp duty and registration charges Maintenance charges Preferential location charges Amenities charges Brokerage Property Search Choosing the best location is important. Location determines the ease of living. There are a few things a home buyer should consider, like Quality healthcare and education near the location. Distance from the place of work, an airport, a railway station, markets, etc. Pollution in the area. The greenery around the area. Another role that location plays is the return on investment of the property. The price of the property may increase depending on the location. Always look for the future scope of development and upcoming infrastructure projects in the area. Other things to look at include government policies and commercial development. The price of the property may vary depending on these factors. Choosing the Right Builder Once you have finalised the location, the next step is to look for a reputed builder. Compare the builders working in the area of your choice. You can also talk to the other residents or customers and gain insight from their experiences. As a home buyer, these points can help you choose the right builder. Past track record Quality and type of the projects done in the past The structural quality of the projects Number of finished projects Number of ongoing projects Approvals and licences Amenities included in the project include parking, security, power backup, etc. Delivery time Post-sale services Selecting the Right Home Loan Buying a home is costly. Not many people can pay upfront. Thus, you might require a home loan. You can talk to your bank or financial advisor regarding this. They can provide you with details and comparisons on home loans, interest rates, and other offered features. There are many tax benefits to home loans as well. One tip is to keep your repayment tenure short while availing of a home loan. This will save you money on interest. [B-02] Conclusion A first-time home buyer needs to go through many factors before closing the deal. Real estate is an investment that requires heavy research. It is also a safe investment that grows over the long term. Thus, it becomes necessary to understand the complete process and be well prepared. Deciding on the type of property and having a financial plan are where you should start. Factor in all the additional costs that may occur. Choose the home loan that suits you best.

08-11-2023

Home Loan

RBI Guidelines for Home Loan Balance Transfer

Paying higher interest rates on your home loans can be tough. Besides being charged higher interest rates by the lender, sometimes the terms and conditions do not suit the interests of the borrower. In that case, borrowers opt to transfer their balance from their current lender to a new one. The new lender might be charging a low rate of interest. Or you might be getting a longer tenure, or maybe the terms and conditions are better. The term used for switching lenders in search of better opportunities is called a home loan balance transfer. A home loan balance transfer is a way to maximise your loan affordability and get better service terms. The Reserve Bank of India regulates this facility by issuing necessary guidelines from time to time to deliver more benefits to the borrowers. What is a Home Loan Balance Transfer, and Why is it Done? A home loan balance transfer is a process through which you can change your current lender. If you are unsatisfied with the current terms and conditions or the interest rate, you can search for a new lender. It will give you access to better terms and conditions and a lower rate of interest. You can close the loan account of the previous lender after paying the due installment and any penalties. From the next month, you can start repaying your interest to the new lender following your home loan balance transfer. What are the RBI's Home Loan Balance Transfer Guidelines? The RBI issued several policies to help borrowers finance their high home loan balance transfer interest rates with more affordable options. If the borrower defaults on the current loan, he or she may pay without penalty because of the fluctuating interest rates. Banks’ fees to switch your balance are about 1–3%. Who is Eligible for a Home Loan Balance Transfer? People paying a higher rate of interest towards a bank loan that offers a lower rate can opt for this. The new lender will pay off the unpaid loan by giving the remainder to the old lender. It is vital to compare the interest rates when going for this. Important points to know To create a uniform code of loan processing, the RBI has established specific rules for loans against property and home loan balance transfer that all financial institutions should observe. For instance, the most up-to-date RBI guidelines state that pre-payment or partial repayment of LAP loans purchased with variable interest rates for non-business purposes incur no costs. What are the documents required for a home loan balance transfer? According to the RBI, the following is a list of documents that you must submit for a home loan balance transfer: Aadhar Card, Latest Electricity/Gas Bill, and Ration Card. Property Tax/Water Bill, Co-Applicant Guarantor-KYC Documents, Employee Cards, Voter IDs, Driver’s Licenses, and Passports. Salaried Individuals’ Six Months’ Worth of Proof of Income The last three months of bank statements showing salary deposited. Your last two years' W-2s and Form 16s. Information Technology tax filings for the last two years and statements from the principal bank account. CA-audited financials covering the most recent six months are all required of self-employed individuals. What are the benefits of a home loan balance transfer? Here are some of the benefits of a home loan balance transfer: Low rate of interest: The primary reason for transferring your balance to a new lender is the lower interest rate you will be charged. The interest rate will be much lower than what your previous lender used to charge. Extended tenure of repayment: The repayment tenure significantly increases in a home loan balance transfer, giving you ample time to plan your finances and repay the loan with utmost convenience. The tenure can be as long as 20 years, which can even be extended to 30 years in most cases. Better terms and conditions: The new lender might offer better terms and conditions, including zero to minimal processing fees, no extra charges, lesser penalties, etc. High flexibility: Besides that, the new lender might provide enough flexibility to make loan-related decisions and tailor your home loan credentials. For example, the option to choose between monthly installments and quarterly investments. No foreclosure charges: Banks don’t charge you any pre-payment fees or foreclosure fees in case of a home loan balance transfer. Under the new RBI guidelines, if you foreclose the account before its term, you won’t be charged any extra fees for the pre-payment. However, earlier, prepayment fees from lenders averaged about 2–5% of the loan balance. [B-02] Conclusion: When the current lender doesn’t meet your conditions, charges you a higher rate of interest, and doesn’t allow you enough flexibility, it is time for you to look for a home loan balance transfer. To protect yourself from being taken advantage of by your lender, it is in your best interest to become well-versed in all of the rules and regulations related to a home loan balance transfer issued by the Reserve Bank of India.

08-11-2023

Personal Loan

How to avail low interest rate on personal loan in Gujrat

Gujarat is one of India’s most developed and developing states. What comes to your mind when you hear its name? Apart from Modiji, of course. Business? You are right. However, Gujarat is not only about business. Apart from cities, and far from them, it has forests, deserts and beaches. Home to various communities, you would see festivals all around the year. It has an incredible historical heritage. It has all that you can take a personal loan for. Moreover, surprisingly, Piramal offers you these at interest rates as low as 10.5%. Therefore, you don’t have to worry about losing much from your working capital while repaying for home renovation. You can still carry out your business smoothly. This article makes you aware of the scope of personal loans in Gujarat and the ways to avail of them at low interest rates. [B-01] What is a personal loan? In contrast to loans where security is required, personal loans are offered to borrowers based on their creditworthiness. Applying for a personal loan just requires a minimal amount of paperwork. A personal loan does, however, have higher interest rates than other types of loans. Personal loan interest rates are predicted to vary from 8% to 30% annually. Types of personal loans You can expect huge benefits from taking a personal loan in Gujarat if you have recently shifted to cities like Rajkot, Surat, Vadodara, Jamnagar, Morbi, etc. But, before taking any loan, you must know if it suits your requirements/needs. A. Home Renovation Loan Cities like Rajkot are even costlier than Ahmedabad when it comes to buying or renting a home. If you have already taken a housing loan here, the renovation might be heavy on your pocket. You must consider taking a home renovation loan from Piramal at 10.5% B. Travel Loan A vacation home or resort near Gir Forest or a beach in Dwarka can be costly. But why compromise on a holiday if you can take a cheap personal loan for travel? Piramal Finance provides insurance along with the loan. C. Medical Loan Gujarat has all the hospital chains like Wockhardt, Apollo, Sterling, etc. The soaring prices of beds and medicines is scary. If you do not have health insurance and emergency funds, which everyone should have, you can take a personal loan to fulfil your medical requirements. D. Wedding Loan Destination wedding sites are seeing a spurt in Gujarat, especially in Junagarh. You might have dreamt of a wedding where the pre-wedding shoot takes place near waterfalls and the reception at a resort. But why limit the number of guests if you are eligible for a personal loan? E. Festival Loan Whether it is Eid-ul-Adha or Bestu Baras, you can’t stop yourself from participating in a festival in Gujarat. Festivals like Diwali can be expensive if you want to celebrate full-fledged. If you cannot afford these expenses, a Festival Loan can help you celebrate while delaying your expenses. Piramal provides personal loans at a minimum 10.5% interest rate. Features of a Personal Loan Piramal provides personal loans with zero pre-payment and foreclosure charges. A loan of more than Rs1 lakh and less than Rs10 lakhs falls under a ‘Personal Loan’. Minimal documentation is required. Sanction doesn’t take much time, and disbursals are instant. Monthly EMIs are not more than your monthly budget. A flexible repayment tenure from 12 to 60 months is allowed. Piramal Finance helps improve your loan eligibility by allowing the clubbing of incomes. Are you eligible for a Personal Loan in Gujarat? If you are one of the following, you can get a personal loan in Gujarat for lower interest rates. A. Salaried Employees A person who has a job in a Government Institution, Private Sector, Public Sector, MNCs, Partnership Firm, or, Proprietorship Concerns must have: Age: Between 21 and 60 years Work Experience: More than or equal to 6 months Income: At least Rs 25,000 per month B. Self-Employed Professionals like an architect, a doctor, or CA and non-professionals like Business Owners, Partners, Proprietors, or Promoters/Directors in private and public limited companies can apply for a Personal Loan in Navi Mumbai – Belapur CBD. Their age must be more than 23 and less than 70. How to apply online for a personal loan? Piramal Finance has made it easier for even a layman to get a Personal Loan in Gujarat: Visit the website of Piramal Finance and choose ‘Personal Loan’ from the main menu. Select ‘How to Apply’ from the article marker or scroll down to find the same title. Click the link in the ‘How to Apply’ paragraph and discover a dialogue box. It is a form titled, ‘Quick Apply’. Fill out the compulsory details and enter the Captcha (Are you a robot?). Go through the ‘Website Usage and Privacy Policy’ before checking/ticking. Submit your application and get in touch with a Relationship Manager. [B-02] The Conclusion The lengthy process of applying online for a Personal Loan in Gujarat from Piramal Finance is explained in this blog. It also clarifies the significance of other loans besides personal loans that one may obtain. Piramal also specialises in loans for homes and home-related purchases. The greatest NBFC is one that helps beginners get loans or at least learn about the loans for which they may qualify. One that offers a user-friendly platform to ask for money.

08-11-2023