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Pradhan Mantri Awas Yojana Documents Required

The Pradhan Mantri Awas Yojana (PMAY) was launched in 2015 with the mission of "Housing for All", aiming to provide affordable housing to millions of people across India. The scheme offers a Credit-Linked Subsidy Scheme (CLSS), providing home loan interest subsidies of up to 6.5% for eligible applicants. PMAY applications can be submitted both online and offline, provided that you submit all the documents required for pradhanmantri awas yojana. This guide will cover all the pm awas yojana documents required to successfully avail the home loan subsidy. Documents Required for PMAY Application To apply for Pradhan Mantri Awas Yojana, you must provide the following documents: Identity Proof (Any One) Aadhaar Card (Mandatory) PAN Card Voter ID Passport Driving License Address Proof (Any One) Aadhaar Card Ration Card Latest Utility Bill (Electricity, Water, or Gas) Rental Agreement Income Proof For Salaried Applicants Salary Slips (Last 3 months) Bank Statement (Last 6 months) Form 16 or Latest Income Tax Return (ITR) For Self-Employed Applicants Income Tax Returns (Last 2-3 years) Business Registration Certificate Bank Statements (Last 6 months) Property-Related Documents Agreement to Sale or Title Deed Approved Building Plan No Objection Certificate (NOC) from Society or Builder Additional Documents (If Applicable) Declaration stating the applicant does not own a permanent house Minority or Disability Certificate Having the above mentioned documents for PMAY application, you can now go ahead with the steps to apply for Pradhan Mantri Awas Yojana. Documents Required for PMAY-Urban (PMAY-U) Identity Proof: Aadhaar Card, PAN Card, Voter ID, Passport, or Driving License Address Proof: Aadhaar Card, Ration Card, Utility Bill, or Rental Agreement Income Proof: Salary Slips, ITR, or Bank Statements Property Documents: Sale Agreement, Approved Building Plan, or NOC from Society Documents Required for PMAY-Gramin (PMAY-G) Identity Proof: Aadhaar Card, Voter ID, PAN Card, or MNREGA Job Card Address Proof: Aadhaar Card, Ration Card, or Utility Bill Income Proof: Self-declaration, MNREGA Job Card, or Bank Statement Land/Property Documents: Land Ownership Proof or Panchayat Certificate The documents mentioned above are essentially required depending on how the Pradhan Mantri Awas Yojana works. PMAY Eligibility Criteria To qualify for PMAY, you must belong to one of the following categories: Category Annual Income Range Loan Subsidy Available Economically Weaker Section (EWS) Up to ₹3 lakh 6.5% interest subsidy (loan up to ₹6 lakh) Lower Income Group (LIG) ₹3 lakh – ₹6 lakh 6.5% interest subsidy (loan up to ₹6 lakh) Middle Income Group I (MIG-I) ₹6 lakh – ₹12 lakh 4% interest subsidy (loan up to ₹9 lakh) Middle Income Group II (MIG-II) ₹12 lakh – ₹18 lakh 3% interest subsidy (loan up to ₹12 lakh) Other Eligibility Conditions The applicant or any family member must not own a permanent (pucca) house in India. Women co-ownership is mandatory for EWS & LIG categories. The property must be in an approved urban or rural area. If applying for PMAY Rural, check the official PMAY Gramin beneficiary list. How to Apply for PMAY Online Application Process Visit the official PMAY website Enter your Aadhaar number for verification Fill out the PMAY application form with personal & income details Upload all the necessary documents Submit the application and save the reference number Offline Application Process Visit a Common Service Centre (CSC) or designated bank Collect and fill out the PMAY application form Attach self-attested copies of required documents Submit your form and collect an acknowledgment receipt Latest PMAY Updates (2025) PMAY extended till 2025 – More homes to be built under the scheme. Increased Budget Allocation – Higher investments in urban and rural housing. More Subsidies for EWS & LIG – Additional support for lower-income groups. Conclusion Every single one of us has a goal of owning a lovely house. A home is one of the most major buys a person can make. It is still a huge investment whether the house is tiny or big, in a city or a distant suburb. The Pradhan Mantri Awas Yojana (PMAY) is a state system to help people who cannot acquire a house on their own. It is a federal funding welfare plan that seeks to enhance the quality of life for urban and rural residents struggling financially. The PMAY plan aims to provide eco-friendly, sound housing that is fair to low-income urban and rural residents. To learn more about the Pradhan Mantri Awas Yojana, visit Piramal Finance for related blogs and explore their products and services. Frequently Asked Questions (FAQs) Can I apply for PMAY if I already have a home loan?Yes, but only if you have not availed any other government housing subsidy. Is Aadhaar mandatory for PMAY?Yes, Aadhaar is required for the online application process. Can a single woman apply for PMAY?Yes, single women are eligible to apply for the scheme.
08-11-2023
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Home Loan

Top Home Loan Festival Offers by Piramal Finance

Do you still have a house in your dreams today? Piramal Finance, one of the most economical home loan solution providers, can help you get started on the construction of your own dream home. If high-interest rates are preventing you from moving right now, you will find more calming and affordable home loan offers during this festival. Piramal Finance offers a wide range of affordable and buyer-friendly home loan solutions to help its customers build their dream homes without any worry. You can be confident that Piramal Finance will work with you to make your dream of home ownership a reality. Our goal at Piramal Finance is to make this transition as easy and comfortable as possible. The best home loan deals are available during the holiday season for both new loans and balance transfers. Additionally, throughout the festival, salaried and self-employed people can apply for home loans and take advantage of the top home loan deals. Let’s look at Piramal Finance’s “Buyer’s Favorite” festival offers’. [B-01] Best Festival Offers for Home Loan Buyers – Piramal Finance Hassle-Free Documentation During Festive Offers: It only requires the barest amount of paperwork to further ensure a straightforward and trouble-free process for a home loan application during festival offers. Pocket-Friendly Festive Scheme: When you choose a home loan during seasonal deals, Piramal Finance gives you the option of choosing a floating or a fixed interest rate, making paying back your loan even more straightforward. You are so much closer to realizing your dream now. Open-to-All: Piramal Finance provides the greatest home loan offers to everyone throughout the festival season, whether they are salaried workers or independent contractors. Low-Interest Rates: This holiday season, Piramal Finance has created the best home loan deal. It has reduced interest rates by offering discounts (check the website) and waiving processing charges (check the website). Repayment Flexibility: There are many options available at Piramal Finance when it comes to creating a home loan structure that suits your requirements. Piramal Finance allows a lot of flexibility in the loan tenure, prepayment and foreclosure as well. Offer to Avail Benefits with Fewer Procedures: Simply complete the application form and provide the required documentation to Piramal Finance to apply for a home loan. A relationship manager will get in touch with you shortly and begin the process at your convenience. Many financial companies today claim to offer the lowest house loan rates in India. Even though many bargains could seem alluring, it’s best to avoid choosing businesses simply because they’re providing low-interest mortgages. A home loan is a long-term commitment, so you must be cautious and wise when choosing one. In the financial industry, Piramal Finance is a reputable and well-known name. Having been in this industry for a while, the company is familiar with the requirements of a borrower and provides one of the lowest loan interest rates in India. Factors to consider before applying for a home loan Before you apply for a home loan, make sure you know how much the fees will cost and how much the interest will be. It is important to understand these costs so you can calculate the overall cost of your loan and prevent yourself from selecting a high-priced loan that you will pay back over time. Here are some important costs to be aware of if you are a first-time applicant: Interest charges for late payments or failure to pay Charges for documentation EMI bounce fees Additional applicable/relevant fees Process charges Advantages of a home loan during the festive season With these loans, you may get the conveniences of your own home now for a good price without having to pay a large amount of money all at once. This makes it easier to handle any unplanned expenses. Companies like Piramal Finance also allow you to reorganize your EMIs if your investment goals change; for example, you can lengthen the repayment period and shorten the EMI if necessary. Your income, lifestyle, and financial security all genuinely improve when you reside in a safe home with improved facilities. So rather than waiting forever or taking a chance on nothing for the same, it is far better to take out a home loan and buy the home of your choice right away. Major home loan schemes by Piramal Finance 1. Piramal Self-Construction Home Loans For the building of bungalows, independent houses, row houses, etc. Up to 90% of the cost of real estate, including land, is supported. Construction can last for up to two years. 30-year maximum term, subject to retirement age. 2. Piramal Super Loans 20% greater eligibility. 10% to 15% off EMI. Land and property costs totaling up to 90% are financed. Top-ups are possible with more EMIs. Applications from both individuals and groups are accepted. Starting annual interest rates are 9%. 3. Piramal New Purchase Home Loan Suitable for usage with ready-to-move-in, under-construction, and resale property. Assistance with confirmed properties is available through advisory services. Agreements with top insurance companies to cover the loan and the property. Process turnaround time for processing is quick. Tailored programs for physicians, accountants, and other professionals. Starting annual interest rates are 9.65%. [B-02] Additionally, consider the repayment period because it directly affects the amount you pay each month (or EMI). You will have enough time to repay a significant home loan amount if your term is longer. In this manner, defaults are prevented. Part-payment and default policies on home loans should also be considered. You can prepay your loan more quickly in the future when you have extra funds. You can now apply for a home loan online here to take advantage of the discounts mentioned above. This shows that the whole process of Piramal Finance’s home application is relatively simple. Having a few required documents and meeting minimum eligibility criteria can make completing a home loan application easier.
08-11-2023
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Business Loan

Smart Business Loan Tips for Entrepreneurs in India

Starting or growing a business in India often requires more than just a great idea—it takes capital. That’s where business loans come in. For entrepreneurs, especially first-time business owners, getting a loan can be both an opportunity and a challenge. The good news? With the right knowledge and preparation, you can increase your chances of getting approved and make better financial decisions for your venture. Here are some essential business loan tips every entrepreneur in India should know. Have a Clear Business Plan Before applying for a business loan, make sure you have a solid business plan in place. Lenders want to see that your business idea is not just exciting, but also feasible. Your plan should clearly explain: What your business does Target market and competition Revenue model and projected earnings How you plan to use the loan amount Repayment strategy A well-thought-out plan increases lender confidence and shows that you're serious about your business. Check and Maintain a Good Credit Score Your credit score is one of the first things lenders check. A good credit score (typically 700 or above) increases your chances of loan approval and may even get you better interest rates. Here’s how to maintain a healthy credit profile: Pay existing EMIs and credit card bills on time Avoid taking too many loans at once Keep your credit utilization low If your score is low, work on improving it before applying. Understand Your Loan Options There are different types of business loans available in India—term loans, working capital loans, equipment financing, overdraft facilities, and more. Each has its purpose: Term loans are for long-term investments like expansion or buying property Working capital loans help manage daily business expenses Machinery or equipment loans are for purchasing business tools and technology Choose the right loan type based on your specific business needs. Compare Interest Rates and Loan Terms Don't settle for the first offer. Different banks and NBFCs offer different interest rates, repayment tenures, processing fees, and prepayment charges. Take time to compare options to find the best fit. Use online loan comparison tools or consult with financial advisors to understand which lender gives you the best deal for your situation. Organize Your Documents in Advance Incomplete documentation can delay or even reject your loan application. Prepare all required paperwork in advance, such as: PAN card and Aadhaar card Business registration or GST certificate Bank statements (6–12 months) Income tax returns Financial statements (balance sheet, P&L, etc.) Having these documents ready shows professionalism and speeds up the process. Borrow Only What You Need It might be tempting to take a larger loan than required, but remember—you have to repay it with interest. Borrowing more than necessary can strain your cash flow and hurt your business in the long run. Assess your business needs honestly and apply only for the amount you truly need. Evaluate Your Repayment Capacity Before signing the loan agreement, ask yourself: Can my business comfortably repay this loan every month? Use EMI calculators to estimate monthly payments and ensure your expected income can support them. If your cash flow is uncertain, consider loans with flexible repayment options or longer tenures. Maintain a Good Relationship with Your Lender Once you get a loan, stay in touch with your lender. Be transparent if you're facing difficulties. Some lenders offer restructuring or flexible repayment options during tough times. Building trust with your lender can help you in the long term, especially when you seek future funding. Use the Loan Wisely Once the loan is disbursed, use the funds strictly for the purpose mentioned in your application—whether it's buying inventory, upgrading equipment, or expanding operations. Misusing funds can lead to financial trouble and hurt your credibility with lenders. Final Thoughts Getting a business loan is a big step for any entrepreneur. With proper planning, smart borrowing, and disciplined repayment, a loan can fuel your growth and turn your vision into reality. Remember, loans are a financial tool—not a shortcut. Use them wisely, and they can be the foundation for long-term success.
08-11-2023
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Home Loan

10 Wonderful Tips To Boost Home Loan Eligibility

For most of us, getting a home is a dream come true. Everyone dreams of having their own house someday. But with rising property rates, owning an estate is becoming tougher. A home loan is a wonderful instrument that allows individuals, especially those with low incomes, to own a home. But here’s the twist: You can only get a home loan if you are eligible for one. Financial institutions like banks or independent lenders have specific criteria for giving loans. These criteria help them determine the creditworthiness of the candidate. So, how can you improve your home loan eligibility? That’s what we are going to explore today. Below, we have shared the top tips to boost home loan eligibility. #1 Improve your credit score Banks usually check an individual’s credit score during the home loan evaluation process to evaluate their creditworthiness. You will not be denied a home loan if you have a good credit score. It boosts your home loan eligibility. You need to pay all your loan EMIs on time to improve your credit score. If you are paying your monthly installments and credit card dues on time, your seriousness will be reflected in your CIBIL score. #2 Go for home loans with a longer tenure An important factor directly connected with your EMI amount is the duration of your home loan. Generally, the longer your loan’s duration, the lower the EMI amount. With a lower EMI amount, it would be easier for you to repay the home loan on time. Lenders generally consider this probability when evaluating home loan eligibility. Therefore, try to apply for longer-term loans to boost your eligibility. #3 Opt for joint home loans Instead of taking out regular home loans, consider applying for home loans jointly. Having more than one earning member in your family considerably increases your home loan eligibility. When you co-borrow, it not only improves your loan eligibility but also divides the burden of EMI repayment with additional tax benefits. If you know about home loans, apply for them with your parents or spouse. #4 Maintain your FOIR below 40% Your Fixed Obligation to Income Ratio is a critical parameter that almost all lenders consider while calculating borrowers’ home loan eligibility. Most financial institutions require you to have 40%–50% of your monthly income devoted to living expenses. Ideally, if your house expenses match this requirement, the chances of home loan eligibility greatly improve. #5 Choose the right lender Lenders are the backbone of the overall lending process. However, due to the complex eligibility process, you might not be interested in home loans from banks. That’s when independent lenders come in to fulfill your dream of getting a home. There are a plethora of lenders in the micro market with less complex home loan eligibility criteria. With a little research, you’ll be able to find them. #6 Make patience your friend It’s advised that you not hurry or panic when applying for home loans. Understand the market rather than rushing into any decision. You need to pay proper attention to some things when determining your estimated budget, calculating your income or earnings, and checking for errors in the CIBIL report. Spending time researching the market and evaluating lenders will help you get loans even with low home loan eligibility. #7 Pay off all your debts Your debt-to-income ratio is an essential factor that most lending institutions consider when evaluating the eligibility of applicants. The debt-to-income ratio refers to the total monthly debt you pay on your income. Your home loan eligibility rate will be low if you are already covering some financially heavy bills. Paying off your debts is the best way to ensure you remain eligible for a home loan. When you have no debt or low EMIs, your chances of getting a home loan improve greatly. #8 Mention additional income sources An excellent way to increase your chances of getting your loan approved is by declaring your additional income. Lenders base their lending decisions primarily on income. So, when you declare your additional sources of income, you give lenders surety that you can quickly repay them. Additional income sources, such as rental income, side businesses, freelance income, etc., can help you improve your financial health. Besides, having additional income can also help you get larger loans comfortably. #9 Make a larger down payment Most lenders or financial institutions finance home loans for approximately 75%–90% of your property’s value. You have to bear the cost of your remaining property. Someone can adjust that, but what about the principal value? If you don’t get it in the first place, your overall goal of getting the house will remain a dream. To ensure higher chances of loan approval, try to make a larger down payment. The higher the down payment, the lower the loan value and, therefore, the lower the payable interest. #10 Avoid changing jobs Are you a salaried person trying to get a home loan? If yes, make sure your job profile reflects your experience of not less than 2 years with the same company. Having frequent job changes in your application will hurt lenders. When it comes to salaried applicants, most lenders accept applications when the applicant’s income is stable. In other words, you have to show the lenders that you have a stable income, and having multiple job experiences contradicts that. Therefore, we suggest you show consistent work experience in your application. It will improve your home loan eligibility and, thus, your chances of getting a home loan. [B-02] Conclusion Home loan eligibility is integral to determining whether you will get a loan. To increase your chances of getting a loan, you must improve your eligibility. In today’s blog, you learned the top 10 tips you can follow to boost home loan eligibility. Try them before applying for a home loan, and boost your chances of getting it! Piramal Finance is a renowned finance company. You can choose from various financing options, such as home loans. They offer hassle-free, quick, and easy home loans with no foreclosure charges and zero repayments. So, what are you waiting for? For more details about their home loan process, visit their official website now!
08-11-2023
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PPF Interest Rates - PPF Maturity, Closing, and Withdrawal Rules

The PPF interest rate has always been a popular topic in the world of investment. It's often the first thing people want to know when considering a PPF account. Are you looking for accurate information on PPF interest rates but need help finding the correct numbers? Don't worry—we've got you covered! In today's blog, we'll dive into the current PPF interest rate and explore some key details about PPF that you will want to take advantage of. So, stay tuned as we get started. Let's begin! What is PPF? PPF, also known as the Public Provident Fund, is an exclusive investment scheme. It’s popular among investors due to its various investor-friendly features and multiple benefits. PPF is an investment scheme for the long term. It’s best for investors who believe in long-term gain and wish to earn high but stable returns. Keeping the principal investment amount safe is the primary target for people with a PPF account. In the market today, there are countless investment schemes. But there has never been a scheme that offers as safe returns as PPF. Besides, it’s also considered the best investment for people who are new to investing. Let’s talk about the PPF interest rates now. What are the current PPF interest rates? PPF interest rates aren’t fixed but are of a changing nature. But despite its nature, it doesn’t change much in the long run. Like in 2020, the PPF interest rate was bouncing between 7-8%. Talking about the interest rate, the current rate is 7.1%, compounded annually. PPF interest rates have been stable at this level since the last quarter of 2020. Its stability is what makes it risk-free. Now you might wonder, “How come the rate is so stable?” Well, PPF is backed by the Indian government, allowing it to provide 100% risk-free returns. Additionally, the PPF also falls under EEE status. This means that whatever amount you invest, the interest on your investment, and your maturity amount—all of them are free from tax. You don’t have to pay even a single penny of tax on your investments. Its tax-free features are one of the factors that attract investors to this fund. PPF Maturity, Closing, and Withdrawal Rules If you are new to PPF, understanding the PPF interest rates is the first step. The second step is learning about maturity rates and certain withdrawal rules. So let’s talk about account maturity first. A PPF account only matures after 15 years, starting from the end of the financial year when the account was opened. Investors get an advantage with the maturity date. They can extend it in blocks of five years after maturity. Now a common question asked by many beginner investors is, “Can we prematurely close our PPF account and withdraw all the money?” Yes, you can always withdraw your money from PPF before the maturity date. However, we don’t recommend you do that. But there are some exemptions, such as higher education for children, medical treatment, etc., where you can close your PPF account. But you can close it only after the compilation of five years, not before that. Learn how to make a crore with PPF. PPF is undoubtedly the best and most secure investment scheme for long-term investors. It’s not just about the tax benefits PPF offers; one can indeed make more than Rs. 1 crore with it. As you might know, the PPF interest rate that the government offers is 7.1%, which is compounded annually. Now let’s assume that this rate of return remains the same for the next 20 years. So, if your yearly deposit is 1.5 lakhs a year, it will be approximately 40 lakhs in the next 15 years. As mentioned above, investors can extend their PPF account’s maturity date by a bundle of 5 years after the completion of the 15-year maturity period. If you continue to invest 1.5 lakhs per year for another ten years, your PPF balance will reach a whopping 1 crore. So, the total number of years it took you to get to 1 crore is 25 years, with a consistent PPF rate of 7.1%. But the government tends to revise PPF interest rates every few years. Therefore, with an increased interest rate, you can reach your financial goal faster than you can imagine. Besides, PPF is the safest investment option, so you don’t have to worry about any potential risk of loss. How can you get the most out of your PPF investments? The biggest goal of every PPF investor is to try and make the most out of their investments. So, let us tell you how to do it. PPF interest rates are calculated monthly. However, it’s credited to your PPF account at the end of the fiscal year. Moreover, the amount of monthly interest is calculated for the days between the fifth and last day. So, if you want to maximise your returns, invest in PPF before or on the 5th day of every month. If you follow this approach, you will become more interested in the current month’s balance than the previous one. That’s the case with monthly investments. Now many people prefer lump-sum investments as well. This means they make all of their investments for the year at once. If you are one of them, try making your PPF deposits between April 1 and April 5 of the financial year. This will help you maximise the returns on your lump-sum PPF investments. [B-02] Conclusion PPF is a great investment option, especially for beginners. If you believe in long-term gain and want to earn via compounding income, invest in PPF. The current PPF rate is 7.1%, but it has a high chance of increasing in the future. Unlike other investment options, every time is the right time to invest in PPF. We have tried our best to share every important detail about PPF and PPF interest rates. If you want assistance with any financial-related topic, such as PPF, FD, etc., try Piramal Finance. Their team of experienced financial advisors will help you make ideal financial decisions.
08-11-2023
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Complete guide on how to find the Cheque Number

Although debit and credit cards and various other modes of electronic payment are overshadowing cheques as a dominant mode of payment, cheques haven’t entirely lost their usage. Even today, many people use chequebooks to make payments for various purposes. On the other hand, however, some people do have a chequebook but haven’t used it once. Whether you actively use your chequebook or not, you might have noticed a series of numerals written at the bottom of the cheque. You might have also heard the word ‘cheque number,’ but you might be clueless about it. But you are not the only one who is clueless about these things. Thus, here’s an article that discusses the cheque and its various aspects in detail and how to locate the cheque number on a cheque. Hence, let’s get started! What is a Cheque Number? A cheque number is a unique 6-digit number seen at the bottom of every cheque leaf on the left-hand side. The cheque number is different on each cheque. No two cheques can be found bearing the same cheque number. A 9-digit code, known as the Magnetic link Character Recognition Code(MICR Code), follows the 6-digit cheque number. All the numbers on a cheque are with special magnetic ink. What are the features of a Cheque? Some of the features of a cheque are as follows: Cheques can only be issued by individuals who hold a current or savings account. A cheque is regarded as an unconditional order and not a request. A cheque is payable only on demand. Whenever a cheque is encashed, the payment is made in cash. The maker/drawer of the cheque needs to put his/her signature on the exchequer mandatorily. A cheque is valid only when it is dated and signed. A cheque is invariably drawn on a specific bank. Where can one find the Cheque Number? One can find the cheque number at the bottom on the left-hand side. The 6-digit cheque number always precedes the 9-digit MICR code. What does a Cheque Number signify? The unique cheque number on a particular cheque leaf is used to know the status of that cheque. For example, you have drawn several cheques to different payees. Now, you are curious to know about the status of those cheques. Here comes the role of the unique cheque number. The cheque number will let you know which cheque has already been encashed and which is still left. Thus, the cheque number signifies the status of the cheque. At the bottom of every cheque leaf on the left-hand side is the 6-digit unique cheque number. The Magnetic Ink Character Recognition Code, commonly known as the MICR code, is a 9-digit number. This MICR code indicated the bank and the bank branch from where a particular cheque had been initially issued to the account holder. The first three digits of the MICR code represent the city code, the next 3 digits reflect the bank code, and the last 3-digits represent the code of the bank branch. The MICR code is followed by a 6-digit number, which is a fragment of the cheque issuer’s account number. The last 2 digits that can be seen at the bottom of the cheque are referred to as the transaction ID. This ID signifies whether the cheque issued is payable at par or locally. Whereas a local cheque can be encashed only at the bank from where the cheque has been issued, while the payable at-par cheque can be issued at any branch of the issuing bank. However, most of the issued cheques are payable at par. All of the numbers which have been discussed above are written with special magnetic ink. Thus, these numbers can be read only with the magnetic in the reader. Usually, all banks in India have the same kind of cheque leaf format as discussed above. However, you might notice slight variations in the formats of the cheques issued by different banks. What are the different types of cheques? The various type of cheques are as follows: 1. Bearer Cheque As the name suggests, the bearer cheque is one in which payment is made to the person carrying or bearing the cheque. The words “or bearer” are printed just in front of the payee’s name on a bearer cheque. Anyone carrying the bearer cheque to the bank is eligible to encash it. The banks won’t ask for the issuer’s authorisation while paying this cheque. Bearer cheques are endorsable. 2. Order Cheque Order cheques are the exact opposite of bearer cheques. On this cheque, the words ‘or bearer’ are cancelled out. This means that no one except the person whose name is written on the cheque is eligible to encash it. The bank might verify the payee’s identity before encashing the cheque. Order cheques are non-endorsable. 3. Crossed Cheque These cheques bear 2 parallel sloping lines along with the words ‘a/c payee’ written at the top left corner of the cheque. These parallel lines ensure that irrespective of who presents the cheque to the bank, the payment will be made only to the payee whose name and account number have been mentioned. A crossed cheque can be encashed only at drawee’s bank. Thus these types of cheques are relatively safer. 4. Open Cheque An open cheque is an uncrossed cheque. This means that the top left corner of an open cheque does not bear 2 parallel lines. An open cheque can be encashed either at the drawer’s or the payee’s bank. The original payee of an open cheque can transfer it to another payee. The cheque issuer must put their signature on both sides of the cheque. 5. Self Cheque Self-cheques can be identified by looking at the word ‘self’ written in the drawee column. These cheques can be encashed only at the bank branch where the issuer has an account. The drawer uses these cheques to withdraw money from their bank account. [B-02] Conclusion The cheque number is the most important part of a cheque. You must copy down the cheque number at a safe place. This is extremely important because if someone misplaces their cheque or a payee finds that money has not been credited to their bank account, the cheque number will help track its status. The cheque number might even help one to retrieve lost/stolen money. Many banks and NBFCs disburse loans via cheques. Piramal Finance, an NBFC, is one of them. Piramal Fiance is a renowned finance company that offers its clients quick, hassle-free, and easy loans. It offers various types of loans, including personal, home, business, etc.
08-11-2023
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EPFO UAN Activation: How to Activate Your UAN Number Online

If you run a business with 20 or more employees, it is mandatory to register with the Employee Provident Fund Organization (EPFO). Under the Employee Provident Fund (EPF) scheme, an equal amount of contribution is made by both the employer and the employee. Every individual registered under the EPF scheme is assigned a Universal Account Number (UAN). It is a twelve-digit value that helps them manage information regarding their EPF account. If you are an employee who wants to switch jobs, the UAN will remain the same. Only member identification changes when you change jobs. You can ask your company what your UAN is. In certain cases, your salary slips also mention it. Without UAN activation, you cannot withdraw or transfer money from your Provident Fund (PF) account. [B-01] There are certain documents you should have before UAN activation. These include: UAN provided by your company Member ID provided by the employer. The member ID is the same as your PF digit. In case you don’t have a member value, request one from your employer. The member ID is an alphanumeric value that consists of a code. This code represents the state as well as regional offices. Aadhaar Card Digits PAN Card Digits Let’s learn more about the steps involved in the EPFO UAN activation process. Steps for the UAN Activation Process Online To activate UAN number online, follow the steps below: Go to the Member Interface of the Unified Portal of Employees’ Provident Fund Organisation. On the right, under the ‘Important Links’ section, you can find ‘Activate UAN’. Clicking on the link will take you to the next page. Here, you need to enter details such as your UAN/Member ID number, Aadhaar digits, your name, birth date, mobile number, and the captcha. After entering the details, go to ‘Get Authorization Pin’. The pin will be sent to your registered phone number. Click on the ‘I Agree’ checkbox to accept the terms. Then go to ‘Validate OTP and Activate UAN’ The password will be sent to the registered mobile number. You can log in now using your UAN and password. After logging in, you can choose to change your password. Documents Required to Activate UAN Number The EPFO UAN activation requires the following documents: PAN card Aadhaar card Bank account details Bank IFSC code Address Proof of identification Benefits of UAN UAN has many benefits for employees as well as employers. Some of them are: Due to UAN, sending PF funds has become hassle-free. It has made the procedure quick and increased the chances of fewer errors. You can even switch your EPF account online. Before UAN, withdrawing your PF was dependent on your employer. But, UAN has reduced this dependency. Once the KYC verification is complete, the PF amount from the old account to the new one can be sent automatically. You receive a notification on your phone for every activity in your EPF account. This has made things more secure. You can also check your account balances through UAN. UAN helps in ensuring the PF accounts of the employee are valid. How to Link Aadhaar with UAN There are three ways to link your Aadhaar card with your UAN: Using the Official EPFO Portal Log in to the Unified Portal for Employee Provident Funds Go to ‘For Employees’ followed by ‘UAN Member e-Sewa’ Enter your UAN along with the password and log in Go to ‘manage’ and then on ‘KYC’ Next, you will need to enter the details of your bank branch, Aadhaar card, and PAN. Go to ‘Save’. Your request will be displayed in KYC pending approval. Once approved by UIDAI, it will mention the employer’s name as “approved by the establishment” as well as “verified by UIDAI.” Using the UMANG App Log in to UMANG app using MPIN or OTP. Once logged in, go to the ‘All Services Tab’. Here, choose ‘EPFO’. Under the EPFO section, choose the ‘e-KYC service’ option. Then choose the ‘Aadhaar Seeding’ option. Enter your UAN, followed by the ‘Get OTP’ tab. An OTP will be sent to your mobile number. Enter your Aadhaar details. Lastly, you will receive an OTP on your registered number again, as well as an email for verification. Offline Mode To link Aadhar in offline mode, you will need to fill out the ‘Aadhaar Seeding Application’. This will require your UAN and Aadhaar digits. You will have to submit self-attested copies of UAN, PAN, and Aadhaar along with the application. This can be submitted at the EPFO office or Common Services Centers. Once the verification is done, you will get a message on your phone saying that the Aadhaar has been linked to the EPF account. [B-02] Conclusion UAN has made things easy for businesses as well as employees. All the PF accounts can be accessed on a single platform. It also helps the EPFO track all the changes being made. These facilities can be accessed online, which makes things hassle-free. Further, you can switch your PF account from one employee to another, from the comfort of your home. The steps for activating the UAN are simple. It requires minimal documentation. For more such articles, head to the Piramal Finance website. Our experts will guide you through your finance-related concerns.
08-11-2023
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Business Loan

How is a Mudra Loan Different from a Business Loan?

When running a business, it is vital to ensure that the cash flow is properly managed. There can be situations when you are on a growth path and need more funds to support your efforts. But there is a chance that you do not have enough reserves to support your targets. This is where you need to opt for a business loan. Many banks and NBFCs offer a range of loans. These loans help you with your urgent money needs. Mudra loans are one of the popular loan options for business owners. There is no need to offer any security to get this loan. You can use this amount for any business need that you may have. This could include paying bills, buying materials, machines, or other costs. Mudra loans are given for amounts of up to Rs. 10 lakhs with interest rates starting from as low as 8% per annum. Mudra loans are given through banks and NBFCs. Do you know that a business loan is not the same as a mudra loan? Read on to learn more about how these two options are different. [B-01] Differences between Mudra Loans and Business Loans As an owner, you must ensure enough cash is available in the business. While you might have to opt for a loan to ensure this, you must know all about the options available. This will help you make an informed decision. Here are the major variations between mudra loans and business loans. Type: A Mudra loan is an unsecured loan. This means you do not need to offer any security to get this loan. As the government gives this scheme, the process to get this loan is very simple. Female borrowers are given a preference under this scheme, though all types of business owners can apply. When it comes to a business loan, it can be secured as well as unsecured based on the lender. The amount you want to get as a loan will also decide if the loan is secured or unsecured. Most lenders offer loans of up to Rs. 10 lakhs without any security. Any amount more than this would need you to provide security to get the loan. Amount: When it comes to Mudra loans, the maximum amount you can get is Rs. 10 lakhs. These loans are given under three heads, Shishu, Tarun, and Kishor. No lender can offer more than Rs. 10 lakhs as a Mudra loan. On the other hand, there is no upper limit for a business loan. Many lenders offer even more than Rs. 5 crores as a business loan if you can give security, i.e., a loan against property. If you do not have any assets to pledge with the lender, you can get up to Rs. 10 lakhs as the loan amount. Security: There is no need to offer security to get a Mudra loan. It is a scheme given by the government to help medium and small companies that do not have any security to offer. Through this loan, you can address any issues your venture has been facing. On the other hand, a business loan may or may not need security. This will depend on the lender, purpose, and the amount of the loan. Most lenders offer loans of up to Rs. 10 lakhs without any collateral. Any amount more than this may need you to offer security. Interest Rate: The interest rate for a Mudra loan can vary across lenders. You can get this loan for as low as 8% per annum. It is one of the lowest interest rates for business loans. The reason for such a low-interest rate is that the scheme has government support. It aims to support small business owners. When it comes to a business loan, the interest rates can vary. The interest rate for an unsecured loan will be higher than a secured loan. For eg, Piramal Finance offers unsecured business loans starting from 17% per annum. It also offers secured business loans starting from 11.5% per annum. Application: You can apply for a Mudra loan online and offline. This scheme is available with banks as well as NBFCs. So, you can identify a suitable lender and then decide to apply at their office or from the website. The same is the case with a business loan. You can apply for this loan online as well as offline from the website of the lender. You must submit copies of various papers to start the loan process. Suitability: Mudra loans are meant for small and micro enterprises. Shopkeepers in urgent need of money can also apply for this loan. The maximum amount of Rs. 10 lakhs can optimally meet their needs. When it comes to business loans, they can be used by all types of businesses. Based on your profile and credit history, you can apply for any type of business loan. These high-value loans are great for medium and large businesses to fund their growth or invest in machinery. [B-02] Mudra loans are a good choice for a small-sized business to drive growth going forward. But it does have its limitations, and this is where a business loan comes into the picture. It can be a good choice if you need a higher amount for your business. Hence, you need to learn all about the pros and cons of every loan type to make a decision. This is where Piramal Finance comes into the picture. They have many articles and blogs on various topics to help improve your skills in the world of finance. They also offer a range of business loans to help fund your growth.
08-11-2023
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Business Loan

How Can You Get a Small Business Loan Without Collateral in a Few Simple Steps

Initiating and sustaining a business requires good ideas and sufficient capital. If you are a small business owner, you might have experienced a need for funds at one point or another. You might think of loans, but there are criteria for providing collateral. However, it is not easy for everyone to have one, reducing the chances of getting a secured loan. But there is hope. Today, entrepreneurs can get collateral-free business loans easily. With the government coming up with schemes and banks and NBFCs supporting them, you can avail of small business loans at reasonable interest rates. Let us know how. [B-01] Collateral-free Loans: Features and Benefits As the loan is collateral-free, it differs slightly from any traditional loan. You must also be aware of collateral-free loans’ features and related benefits. Collateral-free: You don’t have to submit any assets to avail of the loan amount. Documents: All you need is business proof, identity proof, and a simple KYC (know your customer) process. Fast processing: As you don’t need to provide any collateral, the amount is processed almost instantly. Flexible interest rates: You get a competitive interest rate and thus have less burden than traditional loans. Easy repayments: You have the option to repay at your financial convenience. Now that you know about the features of collateral-free business loans, it is time to explore some government schemes under which you can get small business loans. Government Schemes Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) The Indian government launched a credit guarantee trust (CGT) in collaboration with SIDBI (the Small Industries Development Bank of India). You can get a loan from any private or government bank in India. For more information, go to www.cgtmse.in. Pradhan Mantri Mudra Yojana (PMMY) Under the Mudra Yojana, you can get the following types of loans: Loan Type Amount Interest Rate SHISHU Up to 50,000 INR 12% @ five years of repayment KISHOR 50,000 to 5 lakhs Depending on the lender TARUN 5 lakhs to 10 lakhs Depending on the lender To know more about the scheme, visit this website: mudra.org. How to Apply for Collateral-free Loans? You can obtain more information about collateral-free loans by visiting the lender’s official website or visiting your nearest physical branch. In both places, you will find an application form that you can fill out to apply for the loan. Several lenders also have customer service executives who can guide you through the entire process. Now, let us know the eligibility criteria. Eligibility for a Collateral-free Business Loan To avail of a collateral-free loan, you need to meet the following criteria: You need to be an Indian citizen between 23 and 65 years old. You must be self-employed and have your own business. A good credit score (usually more than 700) increases the chance of getting approved. Visit the website of CIBIL to know more. Lastly, you must have a business history of around three years. You also need to know how to improve your chances of becoming eligible. Things to Consider While Applying for a Collateral-free Business Loan There are options for you to get collateral-free loans. However, in some cases, there are chances that you may get rejected. Therefore, you can follow some steps to improve your chances of getting a loan. Explore your requirements: You must know why you are taking the loan and how much is sufficient for your business. Justification in front of lenders is necessary to improve your chances. Furthermore, your reasoning must be clear in your mind. Improve your credit score: If your credit score is below 700, you might have difficulty getting a loan. Therefore, you must try to bring it up to $700–750 to get eligible and negotiate lower interest rates. Clear any pending loans: There are chances of not being eligible for a collateral-free loan if you have multiple pending loans. You should clear these debts before applying for a fresh loan, which can increase your chances. Come up with a robust business plan. Before applying for a collateral-free business loan, a strong foundation and business plan must present in front of the lenders. Trust and confidence are two factors that will help you move forward with your plan. After ensuring your eligibility, the bank can ask you to present some documents for KYC. Let us delve into the details. Documents Required for a Collateral-free Loan Bank Statements: You must have a bank account with financial activity for the past six months. Some lenders may ask for a bank statement before disbursing loan amounts. Business proof: Registration proof, such as the GST number and address of the business, is also required. Also, you can expect the lenders to ask you about your business details. Identity Proof and Address Proof: You can present either your Aadhaar card or driving licence for your identity and address proof. Passports are also valid. PAN Card: You must have your Permanent Account Number (PAN) for KYC. Two recent passport-size photos [B-02] Final Takeaway After reading the above information, you might be well-versed in all the information related to collateral-free business loans. As a business owner, no matter how small or large, you can easily get loans from banks and other financial institutions. However, if you are looking for easy disbursement of collateral-free loans, you must consider Piramal Finance. They have simplified the online loan system for your business needs. In addition, you can also get an expert consultation about your requirements and other business loan-related information.
08-11-2023
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