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Business Loan

Pro Tips To Grow Your Small Business This Festival With The Best Business Loan

Growing a business is a responsibility that every entrepreneur holds and wishes to accomplish. Especially due to a lack of finance and cutthroat competition, it might get tough to stand in the battle sometimes. A business loan, however, can help you have the leverage and take your business venture to another level. Want to know how to grow your business in the festive season with the help of a business loan? Stick to this article to find out everything about business loans, the benefits of taking them, and the ways to grow your business and take it to another level. [B-01] What exactly is a business loan and why is it applied for? A business loan is a type of loan that you take from a lender to invest in your business and multiply your growth. The lender lets you borrow money to help you invest in buying raw materials, investing in equipment, spending money on advertising, etc. In return, the lender charges you a specific rate of interest on the principal amount and gives you a set period within which you have to clear the due. You can take that money and invest in it, growing your business, producing more goods and services for your businesses, and increasing your sales over time. It gives you a kick-start to your business and helps you overcome the cutthroat competition in the business world. What are the benefits of taking a business loan during the festival season? Since the festival is around the corner, you need to meet consumer demands effectively. And for that, you need to ensure that you produce more products, focus on providing quality services, and tackle the marketplace. Here are some benefits of getting an online business loan this festival: High loan amount: Banks offer you a high loan amount to help you invest more in your business venture. The loan amount can go up to as high as 50 lakhs. In some cases, if your credentials are strong and your business is profitable, then the loan amount can be stretched to even 1 crore. In addition, various government schemes also focus on providing you with high loan amounts and charging you minimal interest rates. No collateral: Since most business loans are unsecured, there is no need for collateral or any type of security deposit while applying for it. This is a benefit for you if you are a new entrepreneur and you lack collateral of any kind to make a start. Low rate of interest: The rate of interest on most business loans is quite low to make sure that your maximum money is invested in your business. You have to deposit a minimum amount of money as instalments and the rest you can use to grow your business. Mostly, the interest rate that most banks charge is between 15 per cent per annum to 20 per cent per annum. You can also look for government schemes that subsidise more so that you don’t have to pay high interest. Quick disbursal: The approval process is quite fast and you can get your money disbursed within a day Or sometimes, within two to three days. If your credentials are well and the bank has special offers for the festive season, then you can get approval in lesser time. How to scale up your small business with a business loan during the festive season? With increasing consumer demand, you have to make sure that you focus more on the quantity part along with maintaining the quality of your products. And to do all of that, it takes a good strategy and smart financing choices. Invest in equipment: Especially, to increase the production of products to meet customer demands, you need to buy more equipment. The new equipment will be more efficient than the previous ones and help you produce on a large scale. Invest in the workforce: The best way to intensify the whole process, you need to hire more workers. Hiring more workers will not only increase production but also fasten the process. You have to make your inventory full of your goods so that when the time of sale comes, all you have to do is focus on selling more products. Invest in manufacturing: Invest the money you take from the business loan in your manufacturing sector as well to produce more goods and keep it in surplus for your inventory. Make sure you have all the raw materials and other requirements to produce more goods in bulk. Invest in advertising and marketing: This is a very effective and huge step to increase your sales and take it to the roof. Advertising your product will let people know about your products and offers, and will bring more customers to you. This will amplify your sales and to even fasten the process, you need to market that effectively. Make sure that you don’t invest a lot of money in advertising, and focus more on product manufacturing. Website creation: If you have always wanted to have your business website, this is the right opportunity and the right time to do so. You can use a small part of this business loan to invest in creating a website for yourself. Make your website appealing, curate it, and add your social media handles to increase insights and traffic on your website. [B-02] Summing it up During the festive season, you have to make sure that your inventory is always in surplus and that you never run out of any raw materials. Use the business loan to curate your website as well so that you can connect with more customers who would like to purchase your goods. If you can manage home delivery services in your city, that would even help you increase your sales. If you liked this article, and you want to read more on this topic, you can visit Piramal Finance. It has ample content on personal finance, investment schemes, loan systems, stock market information, etc.

08-11-2023

How To?

How to Transfer EPF Online Through EPFO Portal?

The Indian government would pay the employer and employee contributions to employees’ EPF accounts. For an additional three months, from June to August 2020, the edge goes to businesses with fewer than 100 employees, 90% of whom make less than Rs 15000 a month in pay. Non-government organisations now only contribute 10% instead of 12% to the EPF. An individual can open a Public Provident Fund (PPF) or Employee Provident Fund (EPF) account. Both require the employer and employee to contribute a portion of their earnings. Because of their E-E-E (exempt-exempt-exempt) nature, Employee Provident Funds (EPF) are a great option for paid individuals. It was decided that making investments in EPF, earning interest through EPF, and withdrawing from EPF after five years were all privileges. This article describes the process of performing a PF transfer online. Keep reading to learn more about it. Required Form for PF Transfer Transferring PF monies across accounts necessitates the use of Form 13. To transfer their PF balance from their old account to the new one. When salaried individuals switch employers covered by the EPF Scheme, they must fill out this form. This is very vital. EPA Form 13 The EPF offers a transfer form called EPF Form 13 that can be received in person or online. Fill out the PF Form 13 and submit it to transfer the EPF account. Qualification for PF Transfer Employees are required to confirm that their registered mobile number and UAN are operational on the EPFO portal. When requesting a transfer The PF subscriber must sync any bank information that has been confirmed by the company, such as bank account information and an IFSC number. On the EPFO website, the employee must enter their Aadhaar data. The site should show the joining and departing dates of the PF participant. Additionally, the worker must give their reason for quitting. Please keep in mind that the EPFO portal only permits one PF transfer request to be submitted at a time. Now that customers are aware of how to move PF online, it’s time to identify the paperwork you’ll require to ensure that everything goes smoothly. Below is a list of the paperwork needed for the online PF move process. Alternatives for PF Transfer For PF transfer, there are primarily two approaches: PF Offline Transfer The employee must fill out the PF Form 13 with all pertinent information and submit it to the current employer to use the offline PF transfer option. Following that, the existing employer will send the application to the EPF office. The form will then be sent to the former employer by the EPF office for verification. After receiving confirmation and attestation from the prior employer, the EPF office will transfer the remaining funds from the old account to the new one. There is no need for copies of the applicant’s UAN or Aadhaar card. When a person has numerous staff IDs, the EPFO assigns each employee a UAN, which acts as a unique identification number. Online Transfer Claim Portal (OTCP) A method for transferring PF funds online. To use this helpful online portal, the PF member does not need to provide their UAN, Aadhaar, or other documentation. By attempting to submit a few financial details and employment information, you can transfer your PF. One Employee, One EPF Account: This regulation was put in place to prevent confusion brought on by having numerous PF subscriber data. All current PF accounts will be included in this endeavour, according to EPFO. The PF members’ ability to submit multiple PF transfer applications helps achieve this. Automatic EPF balance transfers are only possible when transferring a PF account from another account, and they require the subscriber’s UAN. The subscriber doesn’t have to exert much effort during this process. The PF will be allocated when their new employer enters their UAN into the system. Pension Plan for Employees The Compensation Act of 1952 specifies how an Employees Provident Fund (EPF) operates. Organisations with 20 or more employees must follow it. However, other organisations may voluntarily take part in this programme. This organization might join a government-approved project, or it might launch a retirement program to build trust. Each one of the known Provident Fund Schemes requires official approval from the Commissioner of Income Tax (CIT). Documentation Needed for an EPF Transfer Form 13 Revised, Universal Serial Number (UAN), Number of Establishment, Identity Verification (Aadhaar, PAN, or Driving License), Employer Information (must be Your Current Employer), Financial Institution Information, and PF Account Information (for both old and current accounts) How to Complete an Online EPF Transfer Form Step 1: Log in to the primary webpage of the EPFO portal using your credentials. Step 2: Once you’ve logged in, click the “Online Services” page. Then “Each Member – One EPF Account (Transfer Request)”. Step 3: Carefully go through all the data on the screen, then enter the details of the PF account to which the money will be transferred. step 4: To obtain the account details for the prior job, choose “Get Details” in. Step 5: Click on “Previous Employer,” then type the UAN and the final ID number. Step 6: Complete the online EPF Form 13 form. Step 7: To enable tracking of the application process, a tracking ID will be generated. Step 8: is to duplicate the form and sign it. After the date of procurement, the applicant has ten days to submit the aforementioned paperwork. Step 9: Both new and former employers must certify the data on the application. Step 10: Before the funds are moved to the new account, the information on the form must have the approval of both employers. [B-02] Conclusion It’s usual for workers to change jobs mid-career between PF-registered firms. But transferring PF rather than withdrawing it can help to protect it. Another key tax consideration is the fact that withdrawals from the PF done within five years of employment are taxed. Your UAN account is where all of the PF money from previous jobs is accumulated under several member IDs. The EPFO portal will save you the time it would take to look for your own money.

08-11-2023

Personal Loan

10 Useful tips to manage your car loan emi

Does your vehicle drive you up the wall regarding its EMIs? Let’s try to find a way to make this drive a smooth one. Vehicles have long since shed their luxury label and become a necessity. Financial planning before purchasing a car is critical for ensuring that the loan is properly acquired, EMIs are scheduled, and repayments are made over the loan’s duration. This will avoid hassles and debt. Digitalisation offers numerous options for managing your car loan. One such application is the car loan EMI calculator, which will guide you at the pre-purchase stage. While all this sounds easy on paper, let’s see how you can tackle your car loan EMIs. [B-01] Plan your purchase basis your lifestyle The prospect of owning a car can be both exciting and frightening. A fair assessment of your finances, savings, and spending pattern is a must. You can put together a list of all your loan commitments, and how it is impacting your monthly income. This will give you a sense of how much residual income is left for you to spend on the EMI of your dream car. Set aside a Budget Setting aside the money you are willing to allocate for this big buy helps you plan for the future. After deciding your monthly EMI commitment, you also need to decide the duration of this car loan. Here, the car loan EMI calculator assists you in determining your monthly payouts. This tool calculates an approximate EMI sum at current interest rates as well as different tenure options based on your allocated budget and car preference. The interest rate and the term of the loan are key factors that will impact your car loan journey. Research Lender options The Indian car market is booming today, with retailers offering a lot of interesting offers along with the vehicle, from easy repayment options to additional car accessories. The buyer stands to gain with multiple incentives being offered. Spend adequate time researching loans offered by several banks and NBFCs. To assist you in deciding the source of your loan, compare several offers and schemes after considering all value-adds. You can undertake this research easily through the online medium, and browse through relevant websites; most of these financial institutions have a car loan EMI calculator on their official websites to help speed up your decision. Choice of EMI scheme The EMI option you choose is directly proportional to the rate of interest and the duration of the loan. This means that a higher monthly EMI means a quicker closure of the loan, on the other hand, a longer tenure would mean paying more interest. Choose wisely, a shorter duration can help close the debt cycle faster as compared to a longer tenure. Pre-planning the loan schedule With the help of the car loan EMI calculator, you can decide your monthly payouts, and the spread of the loan duration, which helps you adjust the loan amount conveniently. The car loan EMI calculator helps you decide whether it is in your best interest to opt for a down payment along with applying for the car loan. Such planning with a car EMI calculator takes off your future worries without impacting your financial goals negatively. Timely payments You must honour your monthly payouts and try your best to avoid any defaults. This not only attracts a penalty but also impacts your creditworthiness. Multiple non-payments against your name will affect your future loan applications. Hence, always plan ahead and avoid defaulting on your EMI schedule. With a cellphone that is always handy, it is easy to set up reminders so as not to miss the EMI date. Tax Benefits You must take note that if you have taken the car loan for business purposes, you can claim a tax deduction against the interest paid. This will bring down your taxable income, thus resulting in savings. Furthermore, you can claim benefits on the depreciation of the car and other maintenance expenditures. To successfully make such claims, the car should be used for the purpose of running a business and registered in your name or the name of your enterprise. Pre-payment options When looking for a lender, always look for sources that allow you to make part payments on your car loan. This may be subject to some charges, find out what the cost of such pre-payments is. Additionally, you can also foreclose your loan before the tenure is over, this too will attract some charges from the loan provider. Make a note of all such expenses while making a decision on the car loan. Refinancing your car loan Sometimes you may be in a situation where you are unable to pay the loan as per your current agreement with your lender or lending institution. Worry not; you have the option to rework your loan terms to either rework the interest rate or extend the tenure, as may be the case. With the help of your lender, you can modify the loan agreement appropriately once you meet the eligibility criteria and get better commercial terms on the loan. Consolidating your loans Living in a day and age where we work tirelessly to fulfil most of our dreams in one lifetime, we do end up taking on several loans. In this scenario, keeping track of the EMI schedule of different loans such as personal, education, credit card, etc. becomes challenging. One way to efficiently manage your finances is to take out one major loan to pay off all the other pending loans. This loan may come with a lower interest rate and favourable payoff terms. This helps reduce your financial burden considerably. [B-02] Parting words Last but not the least, any loan is a debt until it is paid off, it is always in your best interest to try and minimize your expenses, make informed choices, and plan judiciously to avoid getting into a debt trap. To know more about car EMI calculators, loan applications, and managing your finances better, log on to https://www.piramalfinance.com.

08-11-2023

How To?

How to Buy Unlisted Shares in India

The Securities and Exchange Board of India (SEBI) constantly monitors and regulates listed shares, giving them a safety label. Unlisted shares, on the other hand, provide enormous potential for exposure and growth but come with their own set of risks. Like you, countless people in India know the value and potential of unlisted shares but need help figuring out how to buy unlisted shares in India. Many early investors in unlisted companies lost money to con artists due to a lack of awareness and scams. Today’s environment, where fraud is widespread, makes it even more challenging to distinguish between real and bogus information. This article is for you if you're wondering where to buy unlisted shares in India, how to invest in unlisted companies, and can we buy unlisted shares safely? Let's break it down. What Are Unlisted Shares? Unlisted shares are any securities or financial instruments that are not traded on a recognized stock exchange like NSE or BSE. They are often referred to as over-the-counter (OTC) securities. Companies issuing these shares are typically smaller, newer, or may not meet certain listing requirements like minimum market capitalization, profitability, or listing fees. How to Buy Unlisted Shares in India? If you're wondering how to buy unlisted shares, here are the most common ways you can invest safely: 1. Invest in Pre-IPO Companies Through Trusted Intermediaries Companies in their pre-IPO stage issue shares that are not yet publicly traded. These can be bought through intermediaries who facilitate off-record transactions. The shares are directly credited to your Demat account even though the exchange is not involved. When choosing an intermediary, ensure they are SEBI-registered to reduce counterparty risks. 2. Buy Directly from Employees (ESOP Sales) Some start-up employees holding ESOPs (Employee Stock Option Plans) may be willing to sell their shares after the lock-in period. In India, certain brokers and platforms can help you connect with such employees. Always verify the legitimacy of the platform before purchasing. 3. Purchase Directly from Promoters via Private Placement You can buy shares through private placement, which involves negotiating directly with the company’s promoters. This method is usually for high-ticket investments. It is advisable to involve a SEBI-registered wealth manager or investment banker for due diligence and smoother transactions. 4. Invest Through PMS and AIF Schemes Investing in Unlisted Shares If you're looking for a more structured way to invest in unlisted companies, Portfolio Management Services (PMS) and Alternative Investment Funds (AIF) offer professional portfolios that include unlisted shares. These are managed by SEBI-registered entities, ensuring better compliance, diversification, and risk management. Key benefits include: Risk spread across multiple investments. Professional management and due diligence. Dynamic portfolio adjustments as per market conditions. Where to Buy Unlisted Shares in India? If you are still wondering where to buy unlisted shares in India, here are some legitimate options: SEBI-registered intermediaries and brokers. Equity crowdfunding platforms (SEBI-compliant). Angel networks like Indian Angel Network, LetsVenture, etc. SEBI-registered PMS or AIF funds. Can We Buy Unlisted Shares? Is It Safe? Yes, you can buy unlisted shares, but remember: Unlisted shares are high-risk investments. Transactions must always happen through legitimate and SEBI-compliant channels. Stay away from unsolicited offers on WhatsApp, Telegram, or SMS. Always verify the intermediary's SEBI registration number. Risks of Investing in Unlisted Shares While the potential returns are high, some risks you should be aware of include: liquidity: Hard to find buyers or sellers. Capital Loss: High risk of losing your principal amount. No Dividends: Many unlisted companies do not distribute profits early. Dilution Risk: Your ownership may get diluted in future funding rounds. Key Considerations Before You Buy Unlisted Shares in India Always consult experienced investors or a SEBI-registered financial advisor. Do detailed research on the company or start-up you are investing in. Check for clean transaction history, no hidden charges, and direct Demat account transfers. Start small if you are a beginner and follow where institutional investors are investing. Key Takeaways Investing in unlisted shares is risky but rewarding if done carefully. Whether you choose to buy unlisted shares from employees, promoters, or invest via PMS/AIFs, always ensure transparency, regulatory compliance, and proper due diligence. Stay informed and continue reading such articles on Piramal Finance to learn more about how to invest in unlisted companies and buy unlisted shares safely in India.

08-11-2023

Other

Everything you need to know about EMI and how to calculate it

Well, what is EMI? Equated Monthly Instalments (EMIs) are monthly payments made toward a loan. The principal and the interest are the two parts of an EMI. The loan’s principal is subtracted from the amount you borrow. Lenders require interest payments because they incur expenses while making loans. The original principal and the remaining principal balance are subject to this interest charge. What is Loan EMI Calculation? Let’s start with a basic definition of EMI. Equated Monthly Installment (EMI) refers to payments equal to each month. The terms “equal in value,” “monthly,” and “instalment” all refer to the frequency at which payment is expected. The phrase “Equated Monthly Installment” (EMI) refers to the fixed monthly payment that a borrower makes to a lender over a certain period. The monthly instalment is determined by the loan amount, term, and interest rate. The number of loan EMIs and the number of payments are inversely related. [B-02] EMI Interest Rate Interest rates are another major component in determining the magnitude of EMIs. Rates of interest are variable from one creditor to the next. The market circumstances at the time of the loan are considered, along with the borrower’s ability to repay the loan based on their income, savings, and credit history. Interest rate selection is a significant factor. When it comes to the many forms of interest, there are: Reducing Rate The reducing rate decreases as the principal is repaid. Interest is computed on the total outstanding balance, and the interest rate decreases as the principal balance decreases. Floating Rates Interest rates, loan terms, and monthly instalments on “floating” loans are all subject to change based on factors like the national economy. The Reserve Bank of India (RBI) executes interest rate modifications once every three months. Using a floating rate is OK if the base rate is not altered. Of course, they can also be erratic at times. They should be avoided at all costs. Fixed Interest Rates Loans with fixed interest rates have their interest rate and term determined at the time of borrowing the money, and they do not fluctuate over the loan’s duration. Fixed interest rates often run 1-2% higher than those that are variable. This is the method of choice because it provides a ballpark estimate of the monthly instalment fee. Progressive EMI Progressive EMIs are EMIs where the payment amount rises after a certain amount of time. This facilitates a quicker payoff of the debt. No Cost EMI It’s remarkable how quickly a sale may be converted on an e-commerce website or app by mentioning no-cost EMIs. You may now use your credit or debit card to make a purchase using the No Interest EMI options. It would be a shock to hear that the RBI regulations do not allow for interest-free or zero-interest monthly payments (EMI). These EMIs often have substantially higher interest rates than the alternatives. A substantial processing charge is added to the EMIs or the reduced amount on the MRP is included. The ‘no cost’ assertion is, at best, misleading. Equated Monthly Installment (EMI): How Does It Operate? Two methods exist for determining the EMI. The items in question are: Flat Rate Method This calculation approach includes the principal and interest accrued on the principal in the final total. This figure is multiplied by 12 since that is how many months there are in a year after dividing the total by the loan’s maturity date. Payment Plan with a Flat Rate EMI Let’s pretend you’ve gotten a mortgage for 10, 00,000 (the principal loan amount) at an interest rate of 8% for 10 years. The following is the formula for determining your EMI based on the flat rate method: (₹10, 00,000 + (₹10, 00,000 x 10 x 0.08)) / (10 x 12) The monthly instalment is 15,000. Reducing Balance Method Using the reducing balance approach, EMI may be computed with the following formula: (P x I) x ((1 + r)n)/ (t x ((1 + r)n)- 1) This is an example expression using P, I, r, n, and t, where P is the loan principal, I is the yearly interest rate, r is the periodic monthly interest rate, n is the total number of monthly payments, and t is the number of months in a year. Reduced-Balance Example EMI Using the same example, the EMI may be computed using the reducing balance approach. ((₹10, 00,000 x (0.08)) x (1 + (0.08 / 12)) 120) / (12 x (1 + (0.08/12)) 120 – 1). There will be a monthly payment of 12,133. The declining balance technique of calculating EMIs results in less payment than the flat rate approach. While calculating the EMI flat rate, the loan’s principal is kept at a fixed amount for the duration of the loan. Alternatively, the declining balance technique uses the monthly principal reduction to determine the EMI. This indicates that paying down the debt can save borrowers money. Bottomline You can now say, “It’s so easy!” It would be best if you now had a firm grasp on what an EMI is, what goes into an EMI, and how to calculate an EMI for a loan using Excel and a web-based calculator. You should also be aware that the EMI amount may change even if the underlying circumstances remain the same. Possible causes include the use of a flat-rate or reducing-balance system of computation. With this information, you can confidently compare EMI plans and select the one that best suits your financial situation.

08-11-2023

Business Loan

What Happens When Somebody Could not Pay Off a Business Loan?

As a small business owner, you know what it takes to build a company from the ground up. You may have encountered many difficulties while building your firm. Lack of operating cash is one of the major issues that most small company owners like you deal with. To run day-to-day company operations, money must come in. This is the reason why entrepreneurs like you decide to get a small business loan. These loans are offered to aid small business owners in establishing, growing, and expanding their enterprises. Many small business owners are concerned about defaulting on their loans. It is crucial to understand “what happens when you fail on a business loan.“ [B-01] What is a business loan? A business loan is a financial instrument. It generates funds and meets the company’s investment needs. The firm’s owner applies for a business loan from a bank. The amount of the loan and the interest rate are fixed. After accepting the loan, the borrower handles paying the lender the principal sum. You may repay using various options, including EMIs, part payments, lump-sum payments, etc. Why are business loans important for a company? Business loans have become one of the most popular leveraged financial solutions. It is for business owners wishing to invest in their companies without spending money. There are no limitations on the ultimate use of the loan amount collected. The loan amount provided by the loan for company may provide a slew of benefits to business owners. You may use the loan proceeds to buy goods, hardware, and real estate. Or, you may use the loan to invest in equipment and machines. As a result, a loan may meet all a company’s capital needs. Yet, some business owners fear that loans hinder their ability to buy equipment and machines. What Happens If I Don’t Repay a Business Loan? Even company owners with the best of intentions may quickly fall behind on repayments and ultimately fail on a small business loan. If you are wondering what will happen if you default on a business loan, look at the following points: The lender will make efforts to collect- A lender will attempt to collect the business loan through all communication methods, including letters, emails, and phone calls. The credit bureaus will be notified of the default- By default, both your personal and corporate credit ratings will be harmed. Since the documentation required to record an unusual, one-time late payment is not worth their effort, lenders seldom do so. However, they’ll notify the credit bureaus if you don’t pay after a few months. Personal Promises and Security- If you obtained a secured business loan, your lender would have the authority to take possession of the pledged collateral. Sometimes the equipment that serves as security is bought with a loan. Possible request for you to sign a confession of judgment- You give up the right to represent yourself in court when you sign a confession of judgement (COJ). The lender may have the ability to freeze your account and other assets once it has been notarised. Lenders are requesting that borrowers sign these letters in advance. Lending to a small company carries risk, especially if it’s an unsecured loan. Confessions of judgement protect the lender. In this letter, the parties anticipate their future course of action if the borrower fails. Steps to Repay a Business Loan You must have had a good reason for delaying your business loan payment for a while. Whatever the cause, if you’re having trouble making your payments, you may want to think about one of these numerous alternatives: Postpone Your Payments You might request an EMI vacation for a few months after informing the bank of your temporary incapacity to make payments. This circumstance may arise during a job move or a brief lack of clients or workers. Banks may recognise these as valid justifications but still, charge deferral fees. Lower your EMI Consider getting the monthly expense decreased if you are having trouble paying the EMI amount. You may speak with the lending company and ask them to extend your loan’s term. This will lower your monthly EMI payment, but you could end up paying more in interest. You should raise the EMI amount after your financial situation has stabilised. Loan Restructuring A borrower may ask the lender to reduce the loan’s terms and conditions if he or she cannot uphold them. This might result in fewer fees, a lower interest rate, a longer loan term, an interest-free period, etc. Single-event Settlement This option is often used whenever a borrower cannot repay a business loan because the interest accumulated is more than the principal. At this point, the lender would have designated the loan as a non-performing asset (NPA). The borrower may be insolvent or unable to make any further payments. He could be given the option to repay the debt with a minimal payment. Recently, a bank made a settlement offer to its non-performing assets (NPAs) in education loans, waiving up to 90% of the principal and 100% of the interest. However, if you accept this offer, proceed with care since it may impact your credit score, and your credit record will show that you could not repay your loan in full. [B-02] Conclusion Utilising a business loan might assist you in starting and growing your company. But it’s crucial to make your loan repayments on schedule. Failure to do so might have a negative impact. Before accepting the loan, inquire with the lender about how they handle late payments and what happens if you cannot make any payments. For more blogs on business loans, check out Piramal Finance and explore their products and services.

08-11-2023

Home Loan

Loan against Property Eligibility Criteria and Documents Required

If you want a property loan, you need to show the lender that you meet the loan against property eligibility criteria. Each loan application has a list of documents you need to submit to show you meet the requirements for age, income, reliability, etc. The lender checks these documents before approving the loan. This article discusses the different loans against property eligibility criteria and the documents needed to get the loan. [B-01] What is a loan against property? A loan against property is a loan you can get by providing property as collateral. The applicant can use a piece of land, a house, or even a commercial space as security for the loan. The asset placed as collateral stays as collateral until you pay back the principal amount and the interest. Getting a competitive loan against property interest rates can be very difficult, but a loan against property is an effective way to use your property. You can get a loan with a higher amount and longer term if you use the property as collateral. What do you need to know about loans against the property? How much money can be borrowed? A loan against property is approved for about 60% of the property’s market value. Depending on the property value, the loan amount can range from 10 lakhs to 7.5 crores. What is the interest rate? The interest rate changes based on how long the loan against the property is for. Interest rates can be lower if you have a stable income, a high CIBIL score, and high credibility. How long does the process take? Before approving and releasing the loan amount, every lender checks certain documents. The process takes about three to four days. Loan against property eligibility criteria To get a loan against property, you must meet a set of requirements. Generally, loan against property eligibility criteria differs for self-employed people and employees. Loan against property eligibility criteria (general) Here are the general criteria you must meet to be eligible for a property loan: You must be an Indian citizen. Your age should be between 28 and 60. You must be able to provide proof of income. Loan against property eligibility criteria for professionals Professionals who work for either public or private companies should have at least three years of work experience. You should provide income proof. This can be salary slips, income tax return certificates, or other documents. Loan against property eligibility criteria for self-employed You should be able to provide proof of income for six consecutive months. You may have to submit income tax returns for your business. Documents to submit when applying for a loan against a property You should submit proof to prove your eligibility for a loan against property. Here are the documents you will need to provide: Income proof (salary slips for professionals and bank statements for the self-employed) Bank statements Proof of identity (Aadhar card, PAN card, driving license, or other government-issued identity cards) Proof of address (Aadhar card, PAN card, driving license, or other government-issued identity cards) Proof of property ownership (a property deed or other documents) Income tax returns (which can vary from 1 year to 3 years, depending on every application) Other than this, you may also be asked for additional documentation if the lender questions your eligibility. Benefits of a loan against property Take a look at some of the benefits of acquiring a loan against property: Less expensive loans One of the best advantages of getting a loan against property is that the interest rate is usually low. Since this kind of loan is considered a secured loan, the interest rate is lower than for other types of loans. Lower interest rates mean lower EMIs, which make it easier for people to pay back what they borrowed. Continued use of the property Any property can be used as security to get a loan against the property. You will not lose property ownership if you take out a mortgage loan on it. You can also keep using the property even though it is being used as collateral for the loan. If you need a high amount, you can also put up two or more properties as security for a loan. However, an appraisal is done individually for each. Longer tenure A loan against property has a longer tenure than most other loans. It is because a loan against property is a secured loan. This loan may also have a lower rate of interest. Higher amount A loan against a property makes it easier for you to borrow large sums. This is especially true if you have large expenses, such as personal or business requirements. Since it is a secured loan, you can borrow between 75% and 100% of the market value of your property. Things to keep in mind If you want a loan against property, you should keep the following things in mind: Look at the lender’s eligibility criteria before you apply for the loan. You have a better chance of getting approved if you meet all the requirements. Find out how much your property is worth beforehand. Every property loan starts with a property appraisal. You need to know the property value before you apply for a loan against property. Get a rough idea of the amount you need. If you know how much you need, you can determine whether your property can be used to get that loan. Compare different lenders before deciding on one. Different lenders provide various loans against property interest rates. Do thorough research before you select one. [B-02] Conclusion The loan against property eligibility criteria is straightforward. However, understand your eligibility before applying. If you’re not eligible for a loan against property, you can always apply for a personal loan with Piramal Finance.

08-11-2023

Tax

A Complete Guide on Calculating Your Tax Liability

If you are paying taxes for the first time, you may not know much about calculating tax liability. The process of calculating tax liability is straightforward. It can take time to understand all the details. This article breaks down the calculation process into steps. The content highlights everything you need to know about calculating tax liability. Calculate tax liabilityusing the tax liability formula. Before getting into the details, let us understand tax liability. [B-01] What is tax liability? The Indian Government taxes your income every year. However, you only have to pay the tax at the end of the financial year. Tax liability is the amount of money you owe the Indian Government at the end of the year. Tax liability is a term usually used by businesses. This is the amount your business is expected to pay at the end of the financial year. Various factors are involved in calculating tax liability using the tax liability formula. Businesses can also reduce their tax liability. Claiming exemptions or tax credits under the respective clauses are some ways you can reduce your tax liability. When calculating your business’s tax liability, you need to consider all sources of income. This makes it confusing for many people to calculate tax liabilities. The tax liability formula is simple. How to calculate tax liability? 1. Determine your income. To calculate your salary income, you need all your salary slips. You will also need form 16S. Calculate all your allowances, bonuses and compensations. Most full-time employees are provided medical. But you may also receive others such as house rent allowance, travel expenses, etc. Deduct the exemptions that apply to you. You are also allowed a standard deduction of 50,000/- on your annual salary. Deferred tax liability does not apply here. 2. Calculate your income from other sources. Calculate the income you receive from other sources. For example, if you have rented out your properties, the rent is considered income. You can also add other similar incomes. If you rent one or more rooms on your existing property, you should include that in the income. For example, some businesses may rent out one or more floors in their office building. 3. Calculate your capital gains. Capital gains are the income you earn from selling shares, mutual funds, or bonds. Capital gains can be either short-term or long-term. Short-term capital gain is the profit you make by selling shares, mutual funds or bonds less than one year after purchasing. You can claim any deductions under Section 54 and its sub-sections that you are applicable for. The remaining amount is the capital gains income. 4. Calculate your business income. If you run a profitable business, calculate the net profit. Deduct the expenses and allowances from the net total. Refer to the applicable allowances under the clauses of the IT Act. Deferred tax liability is the net difference between the company’s income and earnings before tax. Subtract your earnings before tax from your company’s net income and multiply it by the expected tax rate. 5. Determine if you are missing any sources of income. After calculating all income sources, determine if you have missed any sources. For example, declare if you have received any additional money. If you have won a lottery, you should provide the exact figure. Similarly, you also need to include if you have received money as a gift. Providing the correct amounts will help you simplify the process of income tax filing. 6. Calculate your total income. Calculate your total income by adding all the values you have calculated in Steps 1 to 5. If you earn income from only one source (for example, you are a salaried person), then you need not calculate all these. All money you earn in the financial year should be declared when you file your taxes. 7. Deductions you can claim under chapter VI A. These are the deductions related to investments under Sections 80C to 80U of the Income Tax Act. It includes: Public Provident Fund (PPF) Equity Linked Savings Scheme (ELSS) National Pension System Fund (NPS) Unit Linked Insurance Plan (ULIP) National Savings Certificate (NSC) Voluntary Provident Fund (VPF) Life insurance policies Health insurance policies. You can deduct this amount if you invest in any of these schemes. Before deducting, calculate how much money you invest in these schemes per year. For example, you may have life insurance policies and health insurance policies but not ELSS funds. You can also invest in these funds to get deductions. The total exempt amount allowed is INR 1.5 lakh. 8. Calculate your net taxable income. Your net taxable income is the gross income (step 6) minus deductions (Step 7). The final amount is the final taxable income. The income tax rate on this amount will be according to the amount. You have to check the income tax slabs. 9. Determine your income slab. You have to determine your income tax slabs. Using this slab, you can calculate the tax liability. Before using the income tax formula, understand your slabs. What are the income tax slabs? In the table below, find your category. For example, if you are a senior citizen whose net income of INR 4,00,000, the income tax rate is 5%. Use your net income (amount calculated in step 8) to determine your income tax rate. Tax rates for Individual (resident or non-resident) less than 60 years of age anytime during the previous year are as under: [B-02] Tax rates for Individual (resident or non-resident), 60 years or more but less than 80 years of age anytime during the previous year are as under: Tax rates for Individual (resident or non-resident) 80 years of age or more anytime during the previous year are as under: Note: 1. The rates of Surcharge under the tax regimes are as under: Tax slabs help you determine which income tax rate applies to you. Once you have added the rate, this is the tax payable to you. For example, in the above case, you have to pay 5% of INR 4,00,000. That is, your total tax is INR 20,000. [B-01] Conclusion Calculating tax liability is not very difficult. However, you have to remember to include all deductions and income sources. If you are filing taxes without the help of an expert, go through all calculations and amounts several times before submitting. Using the tax liability formula may seem like a complex task for a first-time taxpayer. Consult a financial advisor to understand whether you have included the correct amounts. Piramal Finance has comprehensive and accurate information on taxation, investment, personal finance, business finance and more.

08-11-2023

Guide

IPL Ticket Price and Online Booking Guide

Booking your IPL 2025 tickets online is now easier than ever. As the excitement builds for the season starting on March 22, 2025, fans can secure their seats through various official and authorized platforms. Here’s a simple guide to help you through the process: How to Book IPL Ticket Online via BookMyShow Website/App: Visit the BookMyShow website or download the mobile app. Account Creation: Sign up or log in to your existing account. Find IPL 2025: Navigate to the 'Sports' section and select 'IPL 2025'. Choose Match: Browse through the list of matches and select the one you wish to attend. Select Seats: Use filters to choose seats based on your budget and preference. Payment: Proceed to payment to confirm your booking. How to Book IPL Tickets Online via Paytm Website/App: Access the Paytm website or mobile app. Account Access: Log in for a personalized experience. Locate IPL Tickets: Go to the 'Events' or 'Sports' section and find 'IPL 2025 Tickets'. Select Match and Seats: Pick your desired match and seats as per availability. Payment: Complete the payment using Paytm Wallet, UPI, or net banking. Book Tickets from the Official Teams Website Royal Challengers Bengaluru: Visit their official site for ticket information. Mumbai Indians: Check their website for updates on ticket sales. IPL Ticket Starting Prices (Stadium Wise): Stadium Name Online Booking Partner Starting Price Narendra Modi Stadium Ahmedabad PayTM insider 400 Wankhede Stadium Mumbai BookMyShow 900 M Chinnswamy Stadium Bengaluru RCB Official Website 2100 Arun Jaitley Stadium Delhi PayTM insider 700 Uppal Stadium Hyderabad PayTM insider 499 Ekana Stadium Lucknow PayTM insider 700 SMS Stadium Jaipur BookMyShow 800 PCA Stadium Mohali PayTM insider 950 Barsapara Stadium Guwahati BookMyShow 1000 IPL Highest Ticket Price: IPL Teams 2023 Highest Ticket Rate Kolkata Knight Riders 26000 Rajasthan Royals 5000 Punjab Kings 8500 Delhi Capitals 18000 Mumbai Indians 9200 Royal Challengers Bangalore 30000 Sunrisers Hyderabad 11719 Lucknow Super Giants 16000 Gujarat Titans 10000 Chennai Super Kings 15000+ If you are an avid cricket lover, you can also go for the Season Pass of your favourite IPL Team. Enjoy IPL! Important Tips: Early Booking: Tickets sell out quickly; it's advisable to book well in advance. Official Sources: Always use official and reputable platforms to avoid counterfeit tickets. Stay Updated: Follow official team websites and the IPL official site for the latest announcements. Enjoy the electrifying atmosphere of IPL 2025 by securing your tickets and cheering for your favorite team live!

08-11-2023