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Tax

What is Tax Liability?

Tax liability refers to the total amount of tax that individuals and organizations owe to the federal, state, and local governments in a given time frame. These liabilities are considered short-term debts for businesses, usually settled within a year, and are reflected on a balance sheet. Individuals generally pay tax liabilities either out of pocket or through income tax withholding from their salaries. Every taxable event, such as earning income, making sales, or paying employees, creates a tax obligation. The total tax liability includes all these events. It is calculated based on income tax rates, types of taxes, and other factors. Your tax bill is essentially the sum of all your tax liabilities owed to the IRS or the income tax department, whether from earned income, investments, or other sources such as lottery winnings. Types of Tax Liabilities You might encounter several types of tax liabilities. Income tax liability (Federal, state, and local) Corporate tax liability Capital gains tax Payroll taxes Excise and franchise taxes Understanding these can help you reduce your taxable income and make informed decisions regarding your finances. Taxation of Capital Gains When you sell an asset for a profit, you incur a capital gains tax liability. This can be classified into: Short-term capital gains, taxed as regular income if the asset was held for less than a year. Investors pay preferential income tax rates on long-term capital gains if they hold the asset for more than a year. Planning your asset sales carefully can help you manage and possibly reduce your tax liability. Tax Liability for Corporations Under Indian corporate tax laws, companies are mandated to pay taxes on their total income. Even companies operating globally but registered in India are liable to pay taxes domestically. Sections 90 and 91 of the Income Tax Act offer provisions to prevent double taxation. Filing accurate audit reports and keeping your records updated is important. This helps ensure compliance and may lower the amount you owe through eligible tax credits. Tax Liability for Small Businesses Small businesses face multiple tax-based obligations from different types of taxes, including: Income tax liability on business earnings Payroll tax obligations Sales tax liabilities As a small business owner, your tax liability depends on different taxable events. These include income, sales, and payroll. It's important to know these triggers. Consult a tax professional to file accurately. They can help you find ways to lower your tax bill by claiming eligible deductions and tax credits. How to Reduce Your Tax Liability Reduce your taxable income by claiming all eligible deductions. Utilize tax credits to reduce the amount you owe directly. Stay informed about income tax rates and types of taxes applicable to your situation. Work with a tax professional who can advise you on strategies to reduce your tax liability legally. Conclusion Ignoring your tax liability can lead to severe consequences, including penalties and audits. Stay aware of your deferred tax liability and ensure that you correctly withhold and pay taxes on time. Keeping good records, making timely payments, and working with a tax professional can help you manage and lower your tax bill.

08-11-2023

Education

Things You Need to Know About PAN Card Fraud

The PAN card is unique to every person in India. Everyone can get this document, regardless of tax status. But in recent times, fraud using PAN cards has been on the rise. Several cases exist where individuals have lost a lot of money. These hackers misuse the details on the PAN card. This leads to financial loss. [B-01] How to Know if Someone Has Your PAN Card Details? If you think someone may have your PAN card details, here is how you can check. Have a look at your credit score. Here you will know all loans taken under your name. Below, we will list the steps you need to take to check your credit report online. This will let you know if there has been a PAN card scam. Step 1: Visit a reliable credit bureau. Step 2: Look for the ‘Check Cibil Score’ option. Step 3: You will have to enter some details. They will include your name, email ID, date of birth, mobile number, and PAN card. Once you enter the correct details, you will be able to check your CIBIL score. Also, you will be able to see if there is any fraud. How to Report a PAN Card Scam? If you find any changes in your credit score, it means someone used your details. You should report any PAN misuse as soon as possible. This section will discuss how you can report a pan can fraud. Step 1: Start by going to the official website of TIN NSDL. On the homepage, you will find the customer care section. Choose “Customer care”. Step 2: On clicking this option, you will get a drop-down menu. Step 3: Look for the “Complaints and Questions” option. Select that. Step 4: A complaint form will open. Make sure to enter all details correctly. Provide the correct data to ensure someone looks at your matter. Step 5: The final step is to enter a captcha code. Enter it and proceed by clicking “Submit”. Is There a Way to Avoid Pan Card Fraud? Yes, there are many ways you can avoid pan card scams. Below, we will list some methods to keep you safe from these scams. We hope this helps you stay safe from such frauds. Do not enter your PAN card details everywhere. First, you should verify the authenticity of the website. Many fake websites are online. These websites take information from the user and later misuse it. Don't give personal info on unknown websites, like credit card or loan comparison sites, not recognized by the government. Misusing and even selling your data is very easy. Only give PAN card copies to valid organizations and businesses. Know where and why you need to submit these. Do not give your full name or your date of birth on online websites. People generally use this information to track the PAN. Make sure you keep an eye on your credit score regularly. Do not save your PAN card details on your phone. You can compromise on confidential information if you lose your phone. What are the Types of PAN Card Fraud? Giving out your PAN card number is risky. People can misuse the information and take loans in your name. Here are some ways that these hackers can use your details. 1. Rental hotel rooms Scammers usually use fake or stolen PAN card details while renting hotel rooms. They may even do this when renting vehicles. If anything wrong happens in the hotel room, the police will first check the IDs. Thus, this is a case of stolen identity. 2. Buy jewellery If you buy gold for more than a certain amount, you must provide your PAN card information. Scammers can use stolen PAN cards for this purpose. In case of any PAN card misuse, the IT department may call you for interrogation. 3. Take loans or apply for credit cards If a scammer steals your PAN card details, they can use them to take out new loans. Also, they can use the information to apply for credit cards. This can lead to various financial frauds. And the blame will rest on you since it has your PAN card information. [B-02] The Bottom Line PAN card frauds are more common than you can imagine. There are many cases where people have reported misuse of PAN card details. These frauds will only keep rising. But the only way through this is to be safe. Go online and check if someone is misusing your information. Avoid giving your PAN card details to strangers or fake websites. Use this information only when it is essential.

08-11-2023

Other

What is a Trading Account, Its Charges and Eligibility Criteria

Recently, many people have moved toward investing. People are opening Demat and trading accounts every day. You might have noticed that your neighbour has begun to talk about stocks with you regularly. Also, you may have decided to start dealing in stocks to make more money. However, before you take a plunge into the world of trading, you need to know about the ABCs of trading. A trading account is a fundamental aspect of share markets. Understanding them is crucial. So, read this article to learn all the vital information about trading accounts. [B-01] What is a trading account? Are you considering investing in the stock market? As an initial step in becoming a trader, you will need a Demat account. The next step is opening a trading account. A trading account allows you to buy and sell equity shares and bonds. Using a trading account, you can trade shares and securities in the stock market electronically. In what way does a trading account work? Your trading account links your Demat account and your bank account. It debits your shares from your Demat account and credits the money to your bank account. This mechanism for online trading accounts facilitates the sale of your shares. Alternatively, in the case of share purchases, shares are credited to your depository account and the money gets debited from your bank account. Features of a trading account Shares can be purchased and sold online or via smartphone. Expert recommendations facilitate access to the best-performing shares in different categories. If you open an online trading account, you will get free alerts about the market and news. Margin investing allows investors to gain exposure to a variety of stocks. You can trade stocks without any delays with real-time transactions. Unique features help you place orders after the market hour. Expert research advice is available from our team of analysts. Trading account benefits As an investor, you can set your trading limits on your trading account. A trading account lets you buy and sell stocks, gold ETFs, forex, and derivatives. It is easy to perform all sorts of transactions virtually. You do not need physical transactions to buy or sell securities. It builds a profitable relationship between profits and sales to an investor. It provides the perfect ratio between profits and purchased goods. Demat account vs. trading account Functional difference: You can use a Demat account to hold securities in an electronic format. A trading account’s purpose is to allow the trading of stocks on the stock market. It means buying and selling shares on the exchange. Nature: A Demat account works similarly to a savings account. In the same way that a savings account holds money, a Demat account allows investors to have financial instruments in a dematerialized or electronic format. They are debited or credited as necessary. Trading accounts, on the other hand, function more like bank accounts. It is essential to have both a depository account and a trading account. The main purpose of a Demat account is to keep your trading account safe so you can buy and sell shares at any time without risk. Time measurement Trading accounts differ from depository accounts. Depository accounts hold shares and are measured as stocks at the end of each financial year. On the other hand, an account for trading transactions is a flow statement. Choosing the best trading account in India Several service providers are available on the market. So choosing the right one can be confusing. Before selecting your broker, you should consider the following: Searching for a platform with reasonable service charges based on transaction frequency is essential. If you are an equity trader, you can select a provider that suits your needs. The best trading accounts have high-tech platforms that let you trade whenever and wherever you want. To ensure smooth trading, select a reliable and efficient service provider. Charges for Opening an Online Trading Account In India, several stockbrokers provide trading accounts to their clients. In most cases, the expenses associated with a trading account are nominal. You can break the typical fee structure into several categories, such as: A one-time account-opening fee is required. Fees for account processing Annual maintenance fee. A trading account can be opened in various ways, depending on your chosen plan and associated account opening charges. The average account opening fee ranges from INR 0 to INR 975.00, depending on your plan type. Eligibility Criteria to Open an Online Trading Account To open an online trading account, you need to meet specific eligibility criteria, which makes the process straightforward. Age You must be 18 years of age. There is still the possibility of having a trading account if you are under 18, but you can’t buy or sell directly with a stockbroker. Besides, you can only sell securities that the minor can possess, such as IPOs, inheritances, gifts, corporate actions, etc. PAN card You must have a valid PAN card to apply. Demat and bank account You must have a functional depository and bank account. The unavailability of a Demat account can be sorted out by submitting either one of these documents: a cancelled check, a bank passbook, or the most recent 6-month bank statement. KYC documents You need to complete KYC for a trading account. Submitting the below documents will help you complete your KYC process: Income proof: If you wish to trade futures and options, you will need income proof. Providing either of these documents can prove your income: the latest six-month bank statement, the most recent three-month salary slip, and the most recent ITR statement. Identity and address proof: You can present several types of documentary proof: a PAN card, an Aadhaar card, a driving license, a passport, and a voter ID card. Alternatively, you can submit your most recent utility bill or bank statement for proof of address. Also, you’ll need your passport photo and signature on white paper. [B-02] Conclusion If you still need to start trading, there is always time for you to start. Piramal Finance can be a one-stop solution for all your financial needs. It is always necessary to look for wealth-creation opportunities to create wealth. Thanks for reading the information we provided regarding trading accounts. We hope that it has helped you and cleared your doubts. Comment if you agree.

08-11-2023

GST

All About GST on Laptops in India

Laptop users must be aware of laptop taxes. Since the tax was first levied on laptops, there have been inquiries on the applicability of GST on laptops and computer devices. We will discuss the various aspects of GST on laptops and computer accessories in India. From the brief history of laptop tax to the present day, we will cover everything you need to know about the taxation of laptops in India. [B-01] GST Rates on Computer and Laptop with Accessories The Goods and Services Tax (GST) is a new tax that was implemented in India on July 1, 2017. With GST, there are different rates for different types of items. For computer hardware and accessories, the tax rate is 18%. The final rate applies to all other items, including laptop computers. So, now that you know the basics, it’s time to head to the store and start stocking up on tax-free items. How Was a Tax Levied on Laptops in the Pre-GST Era? Before the introduction of the Goods and Services Tax (GST) on July 1, 2017, laptops and computer accessories in India were taxed under multiple indirect tax systems. Value Added Tax (VAT) - 5% to 14.5%, depending on the state in which the laptop was purchased. Excise Duty - A 12.5% excise duty was applicable on laptops manufactured in India. Central Sales Tax (CST) - If a laptop was sold across state borders, a 2% CST was levied (if the buyer had a valid tax registration) else, full state VAT applied. Customs Duty (for Imported Laptops) - Imported laptops were charged a 10% Basic Customs Duty (BCD). An additional Countervailing Duty (CVD) of 12.5% was applied (to offset excise duty on local manufacturers). Special Additional Duty (SAD) of 4% was levied to neutralize VAT impact. What is the Applicability of GST on Laptops? With the Goods and Services Tax (GST) implementation in India, many people wonder what this tax will apply to. Thankfully, laptop computers are included under the tax rules. As of now, the GST will apply to all electronics. This includes laptop computers, tablets, smartphones, and other electronic equipment. Buying a laptop for personal use or business purposes, the GST applicable will be 18%. However in case of business, you can claim Input Tax Credit (ITC) on the GST paid, reducing the tax liability. How are GST Rates Determined? Goods and services in India are subject to the GST (Goods and Services Tax). This tax is applied at 10% on the value of the goods or services, whichever is greater. This means you don’t have to worry about paying GST on items that cost less than 100 rupees. However, if an item costs more than 100 rupees, you must include the product’s full price in your GST calculations. This is important to remember, as it can save you a lot of money in the long run. If you’re looking to buy any new items, it’s important to consider this tax and factor it in during your calculations. What is the HSN Code for Laptops and Computer Devices? When buying a laptop or computer device in India, it’s important to know the HSN code. This code is a unique tax identifier for laptops and other computer devices and is required by the government of India. It helps businesses to classify their products so as to determine the tax on them. You can use the HSN code to look up certain specifications about your device, like the processor type or RAM size. Impact of GST on Other IT Accessories The impact of the Goods and Services Tax (GST) on other IT accessories has been far-reaching. Most items previously taxed at a 5% rate now fall under the 18% GST bracket. This includes digital devices like smartphones, laptops, tablets, and e-readers. So, whether you’re looking to save on your tech accessories or know someone who is, keep up with the latest tax news. How is GST Calculated on Laptops? GST is a tax that applies to most consumer goods in India. When you purchase a laptop, the GST amount will be shown on the invoice. You need to pay the GST to the vendor before taking possession of your laptop. Basic GST breakup for LaptopsThe GST rate on laptops is 18%, which includes: CGST (Central GST) = 9% SGST (State GST) = 9% (if purchased within the same state) IGST (Integrated GST) = 18% (if purchased from another state) Let's say you buy a laptop with a base price of ₹50,000. According to 18% standard rate the gst applied will be 18% i.e Rs 9000 and hence the laptop will cost you Rs. 59000. Here if the laptop is purchased in the same state, the sgst and CGST would be Rs. 4500 each and if its purchased from another state the IGST will be Rs. 9000. Types of GST Applicable to Laptops, Computers, and Accessories For starters, the GST is a federal indirect tax that applies to laptops, computers, and accessories. This means that the tax rate, value of the goods, and other specifications are all listed on the GST website. Additionally, if you’re buying a laptop or computer in India and it’s not explicitly mentioned on the invoice/bill/receipt – then it’s likely subject to GST. Keep this in mind when shopping, and be prepared to pay the tax on your purchase. [B-02] Conclusion This blog has provided you with a comprehensive understanding of the tax implications when purchasing laptops in India. You now have insights into the applicable GST rates for laptops, computers, and accessories, as well as the HSN (Harmonized System Number) codes. Staying informed about these tax details can help you make smarter financial decisions. If you are looking to buy a laptop, whether you're a student, a professional, or a business owner, you can apply for Piramal Finance personal loan and choose flexible options to help you finance your purchase with ease. Apply today and take home your dream laptop without financial stress!

08-11-2023

Personal Loan

Who is Responsible for a Personal Loan Amount if the Borrower Dies

Each bank’s and NBFC’s agreement for a personal loan has a section that says what happens to the personal loan on death of borrower. In this situation, the loan balance is usually paid for by the legal heir of the family. If the borrower died and had life insurance in his/her name, the insurance company would pay back the personal loan. The borrower’s family wouldn’t have to worry about the money. [B-01] Types of Loan Home and car loans are secured loans, while credit card payments and monthly instalments (EMIs) on personal loans are unsecured loans. Let’s look at each case to see if the bank can force the borrower’s family to repay the personal loan on death of borrower. Home loan In the event of a joint house loan, the other co-applicant would be exclusively liable for loan repayment if the primary applicant passes away. Auto loan If the borrower dies, their family must pay back the car loan. If the family can’t repay the loan, the bank takes the car and sells it at auction to compensate for its loss. Personal loan / Credit card Unsecured loans include personal loans and credit card debt. If a person dies without making payments on a personal loan or credit card account, the bank cannot ask the person’s family or legal heir to pay the debt. Since the loan is unsecured, there is no security for it, so the property can’t be taken. The bank writes it off in this case and adds it to an ” NPA account.” What Takes Place if the Personal Loan is Taken in the Borrower’s Name? When there is no valid will and the personal loan is only in the borrower’s name, the loan administrator would take care of the obligation. Bank would use the borrower’s assets to pay off the loan, not the administrator, who will not lose money on his own. What Steps Must be Taken to Repay a Personal Loan on Death of Borrower? Notify the creditor or lender of a personal loan if the borrower dies. If you don’t, the EMIs will be thought to have been paid in the usual way. Ask the lender how much money you need to pay back. Check to see if the borrower has a personal loan or life insurance. It could be used to pay off the debt. If there is no insurance, the person in charge of the loan should ask the borrower about any property, real estate, or land they may have owned with their family. Only if the borrower’s name is on the personal loan will the remaining debt likely be written off if the borrower’s assets are not enough to pay off the debts. When a Borrower Dies, How Would Lenders Get Their Money Back From a Personal Loan? Lenders never demand repayment of an unsecured loan, except secured loans or personal loan on death of borrower from a legal heir or any living family member. Since there is no security on this credit, lenders can’t seize and sell real assets to get their money back. Whenever this happens, lenders usually write off the outstanding debt or add this to an “NPA account.” Similarly, family members should know what to do if a person with a personal loan dies. On the other hand, if a co-applicant and co-signer are engaged in a personal loan, then the individual would have to pay off the sum if the main borrower dies. But this rule doesn’t say that the borrower’s legal heirs must pay back the debt. They can or could take the things. The Bank’s Method for Recovering the Loan No matter what caused the death, a loan must be paid back when someone dies. In this case, the loan will have to be paid for by the guarantor. The bank gets in touch with the legal heirs to ask them to pay off the loan based on how much they own of the asset and property without a co-borrower or collateral. If the legal heirs don’t pay back the loan, the bank could take possession of an asset like a house or car and then sell it at auction to get their money back. Most responsibility for paying back the loan falls on the co-borrower or guarantor. What is Personal Loan Insurance? Personal loan insurance lets you pay back the loan if you get hurt, sick, or die before the loan is due. For debt consolidation, the insurance company would pay your loan back. Personal Loan Insurance has rules and terms that the borrower must follow. But if their loan was insured, which means they had insurance, the insurance company would have to pay back the loan amount. Almost all loans today come with insurance because if the borrower lost money, the bank would have no way to get it back. Getting insurance with your loan is almost a must if you want to ensure your family doesn’t suffer if you have bad luck. The lender needs to know that you will pay back the loan. Protecting Loved Ones After Death The simplest strategy to prevent heirs from obtaining personal loans after a death is to prepare a will that details how the assets would be distributed. It is illegal for debt collectors to require surviving relatives to pay for a deceased person’s loans, except for joint or co-signed accounts, including loans. They will still attempt, so you’ll be aware of your rights. Accounts containing recipients who are still alive are also immune to creditors (life insurance, retirement accounts, trusts, etc.). A family won’t need to inquire about what occurs to personal loan on death of borrower. If they are prepared and aware of what to do. [B-02] Conclusion Families who have lost their main income earner are worried about how they will pay off any debts or credit card balances. The last thing they would have wanted to do was talk to people from the collection agency. Financial institutions’ steps to get back money that hasn’t been paid depend on the type of loan. In some cases, like a home loan, the law makes it easier for lenders to get their money back. In some situations, like a personal loan, a lender has no legal options.

08-11-2023

Personal Loan

The process to get a personal loan to buy a second-hand car in India

Having a car of your own is probably one of the best experiences you will ever have. It is still a dream come true experience for many people because of high financial requirements. However, getting a car, be it second-hand, is difficult without any financial assistance. In such cases, people go to apply for loans to help them accomplish their needs. Since buying a second-hand car is a personal requirement, you can go for a personal loan. A personal loan can help you cover all your personal needs without putting much financial burden on your monthly budget. It is one of the most popular loan options that can touch upon a variety of subjects like buying a car, or a house, funding higher education, making a down payment, or even financing a wedding. Personal loans are also easy to apply for and can be quickly sanctioned to borrowers. Do you want to buy a secondhand car using a personal loan amount? Then Read on to answer all your queries related to personal loans. This will help you know about personal loans, their eligibility, papers, and the process to get a second-hand car. [B-01] Personal loan: What is the meaning of a personal loan? A personal loan is a financial aid that you get from a lender to meet your financial requirements. The lender can be a conventional source like a Bank or an NBFC or even a private financier. You will be charged with a rate of interest which you have to repay within a tenure. You don’t have to pay the total amount of the loan upfront or make any down payment. You will only be required to repay the debt through the EMI. Since personal loans are unsecured, you don’t require an asset like a property or shares to pledge to get a loan amount. You can apply for it and get sanctioned even if you do not have collateral. The loan amount is often high so that you can easily cover your needs and still not experience any financial burden. There is high flexibility in terms and conditions to help you have the liberty to choose the best for yourself according to your goals and requirements. Now that you have known the meaning and significance of going for a personal loan, it is time to know about some of its features. What are some of the exclusive features of a personal loan to buy a second-hand car? There are several features of a personal loan which make it stand out from all other types of loans. Rate of interest Even if a personal loan is an unsecured form of loan, you still are charged a higher rate of interest, provided that you are creditworthy to the lender. Banks and NBFCs charge an interest rate of about 10.45 per cent per annum to 24 per cent per annum on personal loans in India. The interest rates solely depend on your credibility, credit score, and financial muscle to repay the loan. Disbursal The disbursal period on most personal loans is often within a day to ensure that the borrower doesn’t face any delay. Documentation The documentation requirement is also minimal to avoid unnecessary paperwork and prevent any type of delays just asked to show some basic documents like your KYC details, income proof, etc. Loan amount The loan amount sanctioned on most personal loans is also high, ensuring that the borrower gets to accomplish the requirement. The loan amount ranges between Rs. 20 lakhs to Rs. 30 lakhs and sometimes, can even go up, as high as Rs. 40 lakhs. Tenure Tenure is another factor which is very important when choosing a personal loan. The tenure of repayment on most of these loans ranges between 12 months to 60 months and in some cases even goes up to 84 months. This gives you the liberty to choose the best for you and plan your finances accordingly. Eligibility to buy a secondhand car using a personal loan. The eligibility criteria to get a personal loan to buy a second-hand car are easy and basic. You need to belong to the age group of 21-60 years to get a loan for a second-hand car. You must be either a salaried individual or a self-employed person, holding a work experience of about 1 to 3 years. You should have a decent credit score to get a personal loan for a second-hand car, usually 750 or more. In addition, you need to show some documents like your Photo ID, signed application form with 3 passport-sized photographs, residential proof, and income proof. How to get a personal loan to go for a second-hand car? Most people buy a pre-owned car for two reasons, either to learn to drive or if they are experiencing any financial burden. In both these cases, you can go for a personal loan to have a second-hand car at a decent interest rate. Before you apply for a personal loan to buy a secondhand car, you should at least have a decent credit score (750 or more), and a stable income. You should be able to arrange all the required documents beforehand and understand the mechanism of financing at a dealer to get a better offer. Moreover, you should try to make a down payment, as much as you can, to avoid higher interest rates on finance. [B-02] Wrapping it Up A second-hand car is the best choice for you if you are going through financial troubles or you want to learn how to drive. In both these, cases, you need financial aid that is going to help you have a second-hand car. So here, a personal loan comes to your rescue which you can get at a lower interest rate. But, before applying for it, you should make sure that your credit score is up to the mark, you qualify for the eligibility criteria, and you are capable enough to make a down payment. If you want to know more about personal loans and want to apply for them, you should visit Piramal Finance.

08-11-2023

Personal Loan

8 Reasons for getting a Personal Loan in India

You may often need money when you are least ready for it. In times of financial trouble, personal loans can be a lifesaver. They are available immediately and fall under unsecured loans, meaning they do not require collateral and can be repaid quickly. In the past, borrowing money required a visit to the borrower, but now everything can be done online. Personal loans cover all the financial needs of a person. You may decide to look for a loan due to several factors. Taking a personal loan in India is simple and can be done for any need. [B-01] Even though there are many uses for personal loans, some reasons are popular and almost universal. Let’s talk about some of the most common reasons to get a personal loan in India. 1. Easy application and approval In the past, Indian lenders and banks took too long to approve personal loans. One had to fill out a lot of paperwork and wait for days, and even then, there was no guarantee that the instant loan application would be accepted or that the funds would be distributed in India on time. However, today’s online lenders make it possible to apply for a personal loan in India and get it in just a few hours. You can quickly apply for a loan online by immediately visiting the website and uploading your documents in minutes. In addition, the loan amount is deposited into your account once your application is approved. The entire process is done online, from applying for a loan to getting the money. This way, you can apply for a loan and get your money without having to talk to your lender. You will also be able to meet your urgent requirements quickly with fast loan disbursal. 2. Medical Emergencies Medical emergencies are unpredictable and can put immense financial strain on individuals and families. From sudden hospitalizations and surgeries to critical treatments and post-operative care, the costs can escalate quickly. In such situations, a personal loan serves as a quick and hassle-free solution, ensuring you get the necessary funds without depleting your savings. With the rising cost of healthcare in India, having immediate access to funds can be a lifesaver. Many financial institutions and NBFCs offer personal loans specifically for medical emergencies, covering everything from doctor consultations and diagnostic tests to ICU charges and expensive medications. If you require instant financial assistance, you can opt for an online instant loan, which offers quick disbursal—generally within a few hours. 3. No usage restrictions The primary advantage of personal loans is that you can use them for any purpose. On the other hand, home and car loans can only be used for a specific purpose. In this way, they are not similar to a home loan, which you must use to purchase real estate, and a vehicle loan, which you must use to buy a vehicle. You can use individual credit to meet any financial need. You can use personal loan in India to pay for things like vacation expenses, house renovations, new furniture and appliances, wedding expenses, unexpected health care expenses, education expenses, buying a used car, etc. 4. No Collateral One of the main reasons why personal loan in India is becoming more popular in this country is that you can obtain them without any collateral. Since individual loans are unstable advances, you do not have to give any security, guarantee, or insurers to get a loan confirmation. When approving a personal loan in India, the only factor considered is your ability to repay the loan within the stipulated time. 5. Flexible terms The typical repayment period for an instant loan is between 12 and 60 months. You can choose the maturity period that suits you best. However, remember that a personal loan in India comes with extended repayment periods and has significantly higher interest rates than loans with shorter repayment periods. Features like low EMIs and flexible repayment terms make loan repayments simple. Your credit score will also increase if you take an instant loan and make your EMI payments on time. Remember that while the loan has a longer tenure, the EMIs are lower, but the total interest paid is higher. As a result, you can be flexible and choose repayment strategies that suit your preferences and financial situation. 6. Personal loan for weddings In every Indian household, a wedding is one of the most significant occasions. You want to complete every step, whether it’s your or your children’s wedding. Taking out a personal loan in India will get you everything you want, but suddenly your savings will run out. Several financial institutions offer attractive terms and interest rates for wedding-related personal loans. 7. Higher education expenses Whereas you can cover school fees with an education loan, You still need a lot of money for related expenses. Some basic costs associated with higher education include travel, insurance premiums, book costs, and housing deposits. One can pay these costs and realize your dream of studying at a good school by getting a personal loan. Traditional education loans come with some conditions and restrictions. For example, some loans can only be used if you get into a particular type of college. In addition, they have strict repayment requirements, and it takes years for students to become debt free. In such cases, a personal loan in India is generally a better option as there are no essential elements for drawing such an advance. [B-02] Conclusion It does not matter for what reason you are taking a personal loan in India; what matters is that you pay your debts on time and have a good credit history. A personal loan in India can help prepare for any financial needs and to deal with life’s uncertainties. If you are looking for an Indian financial services company offering personal loans, you should go for Piramal Finance, as it offers customizable personal loans with longer tenure and reasonable interest rates. Moreover, the costs and fees are not too high, and there is no collateral or security requirement. With Piramal Finance, you can choose the EMI amount that suits you best and free yourself from the burden of high repayment costs.

08-11-2023

Personal Loan

How To Extend Personal Loan Repayment Tenure; What Are The Effects Of It?

A loan is basically for a person who is looking for some kind of financial help and tenure or longevity plays a vital role in every loan. It also includes personal loans, which can be taken for a maximum of 5 years. Initially, an individual should choose an appropriate personal loan tenure, that is it should not be too long or too short. In this way, the overall interest experiences a substantial reduction. And life is certainly unpredictable and therefore some uncertainties will surely come in the path. Sometimes it can become quite difficult to pay off the personal loan EMI and in that case, a person would surely prefer the EMI to be lower. And this can only happen if the personal loan repayment tenure can be extended. [B-01] Here are Some of the Key Components of Personal Loan Repayment Tenure 1. Tracking Loan Repayment The repayment schedule will determine if indeed the running private loan arrangement has to be modified. When you ask the creditor to extend the personal loan’s term, they would initially review the repayment history to consider how consistently you have made EMI payments. The lender will look at the payment history going back at least 9 to 12 months. If the company notices areas where payments are falling behind schedule, it may think about extending the term to lower the EMI cost and help you make the on-time payment. 2. The Debt to Income Ratio The EMI on a private loan might have been less than 50% of the monthly gross earnings at the time of credit application and the implication of this is that it must have prompted the creditor to authorize the mortgage without hesitation. However, as time passes, a person might need some new loans which in turn would increase the debt in proportion to income. Also if the person has repaid the loans and the overall debt obligations exceed 60% of your wages, the creditor may increase the personal loan repayment tenure to avoid a hypothetical fallback issue in the future. 3. Revenue Evaluation If a person hasn’t signed out any additional debt but is still having difficulty making personal loan repayments on time, then it possibly can be the case that your earnings are not increasing with the growing inflation. In such cases, it should be discussed with the lender, when pursuing an extension on personal loan repayment. The lender will keep track of this and request payroll stubs and bank account numbers. When a person applies for a new personal loan, the lender will need the past three months’ salary slips as well as the last six months’ bank details. However, the lender may want you to present income details dating back a year or longer. 4. Your Life Stage Someone set to retire soon may have difficulty extending the term of their personal loan repayment. The argument is that extending the term further than the age of retirement may raise the likelihood of failing to pay. The creditor will preserve the term inside their pensionable age to avoid such occurrences. However, if superannuation is a long way off, the lending institution may consider extending the term if you are experiencing legitimate loan payment difficulties. Effects of personal loan repayment tenure Mentioned below are some of the effects of extending a personal loan repayment tenure: 1. The possibility of applying for a larger loan balance The mortgage balance users’ desire to borrow is the foremost important thing to think about when applying for private loan repayment. It is established by your financial requirements and accessibility. A longer amortization period permits you to borrow more bonuses based on their liabilities ratio. When it regards personal loans, all microfinance companies recommend an equity ratio of 35-40%. This indicates that the monthly liabilities, including prior EMIs and current EMIs, should account for 35-40% of your monthly income. Choosing a longer loan term might lower your DTI ratio by increasing your repayment capacity. As a result, you will be able to borrow more money. 2. It aids in the growth of a better credit history. The credit score is an important consideration in the mortgage application procedure. However, establishing a good credit score requires time and consistency. You have an exceptional possibility to accomplish this with a long-term conventional mortgage if you complete your EMIs on time. 3. Make room in your budget for extra things. One could save money for those other scheduled and unanticipated costs because your EMI repayments are reduced due to the longer repayment term. Users can then apply the excess funds to any additional requirements. If a person has a credit card, for example, a long-term loan with reduced EMIs can allow him to put this extra money toward its settlement. Furthermore, a person might employ this income in investments to obtain bigger returns for their long-term personal planning. [B-02] Conclusion Now that you’ve learned about the factors that can assist you to extend your personal loan repayment term and lower your EMI, put them into action with caution. Many people prefer to prolong the tenancy to the point where they ultimately pay significantly more to lower weekly payments. Because personal borrowing costs are still normally high, extending the loans for a prolonged period might dramatically increase your payments. When you’re facing a loan obligation, keep in mind you designate your earnings accordingly so you don’t find yourself having to ask the banker to extend the personal loan repayment tenure.

08-11-2023

Personal Loan

Personal Loan in Nagpur: Apply Online @ Low Interest Rate

Do you lack the funds to fulfil your obligations? Are you looking for a low-interest-rate loan that will solve your problems? Then, a personal loan is a solution for you. A personal loan is the best way to meet financial liabilities without pledging any assets for collateral. These are unsecured loans and are sanctioned quickly. You can apply for personal loan for many reasons like paying off medical bills, renovating a home, wedding expenses, purchasing expensive appliances, travel expenses, or even paying off existing debts. In this article, you will learn how you can get the best personal loan in Nagpur at a low interest rate. [B-01] Features of a personal loan Some of the most common features of a personal loan are as follows. Interest rates of a personal loan in Nagpur start from 12.99%* per annum. Personal loans have flexible repayment tenures ranging from 12 to 60 months. You can apply for any amount between Rs. 1 lakh to Rs. 10 lakhs. There are no or low pre-payment and foreclosure charges. Personal loans in Nagpur have pocket-friendly monthly EMIs. The documentation process and disbursal of personal loans are quick. You can club your and your spouse’s income for higher loan eligibility/ No collateral is required. What are the eligibility criteria for a personal loan in Nagpur? To be eligible for a personal loan in Nagpur, you should meet the following criteria. You must be a resident of India to apply for a personal loan in Nagpur. Your age must be between 21 and 70. A salaried employee, a self-employed professional or non-professional, an employee of the State, Central, or Local government, or an employee of the public or private sector can apply for a personal loan in Nagpur. You must maintain a credit score of 750 or above to be eligible for lower interest rates. What documents do I need to submit for a personal loan in Nagpur? You have to submit the following documents. Identity proof: Voter ID, Aadhar card, PAN Card, driving license, or passport. Proof of residence: You can submit a copy of your Aadhar card, ration card, driving license, passport, voter ID, electricity bills, and gas connection bills. Proof of Age: PAN card, Aadhar card, birth certificate, SSC certificate, voter ID or any government-issued document can be used as age proof. Loan application document with your signature. Bank statement (past six months). Additional documents required for salaried applicants: Salary slips (past three months) Income tax returns or Form 16 (past three months) Additional documents required for self-employed individuals: ITR (past three years) Balance sheets and P/L statements for the past three years How can you apply for a personal loan in Nagpur? You can apply for a personal loan in two ways. You can apply online. Direct online applications are accepted at the bank’s or NBFC’s website. All documents can be uploaded with the application form. You can apply in person at your nearby branch by going there with the necessary documentation. You will be assessed with all the documentation. How to get a personal loan in Nagpur at lower interest rates? Before you start searching for a personal loan in Nagpur with a low interest rate, there are a few things to consider. Pick a lender who can offer you loan terms that are adapted to your specific circumstances. Make sure you have a high credit score before applying for a personal loan in Nagpur as this determines the interest rate you will pay. If your credit score is low, the interest rate on a personal loan will be higher. Also, before applying for a personal loan in Nagpur, evaluate your requirements and the amount you need for the expense. If you do not calculate your needs, you might borrow more money than you need. You will be required to pay interest on the higher loan amount. If you get a loan for less than you need, you might be forced to get another loan. The second loan may have a higher interest rate. This will also affect your credit score. Weigh the advantages and disadvantages of several personal loan possibilities before selecting any one of them. Compare all terms before making a selection. Research the interest rates for each loan before choosing a loan that suits your needs and preferences. The most effective way to compare different personal loan interest rates is by using online calculators. The planning will help you have a straightforward borrowing experience. It will allow you to make an error-free decision. If your employer has a loan or other financial product partnership with a bank or non-banking financial institution, you can approach this lender because you might get exceptional interest rates on your loan. [B-02] Conclusion Availing of a personal loan may be the best way to acquire funds for your urgent requirements. However, some people find it difficult to get a personal loan because they are unsure whether they are eligible for such loans. Applying for a loan is not a complicated process. Personal loans in Nagpur are approved swiftly once you provide the required documentation. If you do not know where to begin, it is best to consult an expert. Piramal Finance can help you to get low-interest-rate personal loans in Nagpur. We can assist you in everything ranging from documentation to disbursal of loans. We offer ease of access, convenience, a 100% transparent process, and customer support. We also provide online services to help you obtain a personal loan hassle-free and from the comfort of your home. Contact us now to get started.

08-11-2023