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Business Loan

Finding a Loan for Your Business Needs in 2025

No matter how big or small a business is, it needs money to do everything it needs to do. Funding is required not only as a one-time investment but also regularly as working capital. Not everyone will always have enough money to invest in a business when needed. Also, some days you’ll need a lot of money, and others you won’t. You would all like to get a loan for business with a lower interest rate. This article will provide information about small business loans and interest rates for business loans. [B-01] Average business loan interest rate in India The typical interest rate for business loans varies depending on the loan type. Business loan interest rates typically range from 15% to 24% annually. Since many business loan types are available for clients with a wide range of credit scores, interest rates are ambiguous. Types of Business Loan Interest Rates There are two main interest rates for business loans: those that go down over time and those that stay the same. These are fully explained here: Reducing interest rate Reducing interest rate is the rate that is calculated monthly on the remaining loan value. In this method, the EMI includes the principal and the interest due each month on the loan amount still owed. With each EMI payment, the amount still owed on the loan goes down. So, the interest rate for the next month is based only on the loan amount that is still owed. This interest is calculated by multiplying the interest rate per payment by the remaining loan amount. Flat interest rate A flat interest rate is the interest rate calculated on the total loan amount over the life of the loan without considering that the monthly payments will reduce the principal amount and, in turn, the interest rate. So, the effective interest rate is much higher than the nominal flat rate. This is how you figure out a fixed rate of interest. The formula for figuring out a fixed interest rate is Interest Payable per Payment = (Original Loan Amount Number of Years Interest Rate p.a.) / Number of Payments. Reasons Why You Want to Take a Loan for Business Getting a loan for a business can be a good idea. You can buy new products or hire more people with the extra money. This will help your business make more money and grow. Let’s look at why you might want to take out a loan for business: Starting a New Business Before a business can take its first step, there are a lot of things that need to be done and things that need to be set up. Capital is essential to pay for all of these, and a small business loan can make it easier on the owners. For business growth If a business is doing well and the owners want to grow it, a loan for the business would be beneficial. It can be used to pay for the creation of new products, hiring, promotion, marketing, and many other things. For Renovations It is essential always to update your office space so that you can get more customers. Getting a loan for business is the best thing to do if you want to fix up the place and add new, high-tech equipment. To get new business opportunities If you want to take advantage of a business opportunity on the market, you might need money. Loans for business can help you get money no matter where or when you need it. To stand out from your competitors Today, there is competition in every field, so it is essential to stay ahead of your rivals. Using a loan for business, you can install high-tech machines, digitise your business, switch to better software, etc. Minimum Personal Credit Scores for Small Business Loans Here’s how your credit score affects your chances of getting a small business loan. Remember that this is only one of many factors considered by lenders during the approval process. A credit score of 550 or lower When small business owners have credit scores in this range, most lenders refuse to offer them credit. Sometimes you have to be eligible for a loan from a specialised lender. But the interest rates will likely be very high. You may also be able to obtain merchant cash advances or invoice financing. But do your research and proceed with caution, as always. A credit score between 550 and 600 Most banks cannot approve your loan for business at this point. The interest rates will still be high even if you have access to alternative lenders. A credit score between 640 and 700 This is still too low to meet the criteria for most banks’ loans. There are a lot of lenders available to you that offer reduced costs. But the interest rates will still be higher than they would be for traditional loans. A credit score between 700 and 750 Here, you can apply for traditional bank loans and loans for business. Most financing options are still available. But you will usually need vast documents and proof of your company’s ability to pay. A credit score of 750 or higher You’re in the best possible position with low interest rates and useful repayment terms. With this high credit score, you can obtain affordable financing. [B-02] Conclusion Loans for business are an effective tool for funding, launching, and growing your business. As a firm owner, you may seek funding to keep your firm running, expand your locations, buy new assets, or recruit additional staff. All of this is made possible by a small business loan. Cash flow management is a vital part of every firm. For most small firms, timely access to financing is critical to survival. But how can you get loans when you currently need operating capital? If you need a small business loan in India, the internet can deliver the finest loan offers from around the nation right to your door.

08-11-2023

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Everything you need to know about fixed rates in India

Are you worried about the interest rates going up? Then it would be best if you study more about fixed-rate loans. By applying for a fixed-rate loan, you can fix your interest rate. Then you will be able to enjoy a fixed EMI for your loan term. Fixed-rate loans are best if you want to keep a tab on your EMIs. It also allows you to calculate the interest you’ll pay throughout the loan. If you take a fixed-rate loan, you will also know how much you will repay. Fixed-rate in India is a loan product where the interest rate is the same for a specific period. Fixed-rate loans are meant to be simple and practical. Several banks in India offer fixed loans, which are a popular choice for borrowers who want to lock in a low interest rate. Read on to learn more about fixed-rate loans. What is a fixed-rate loan? A fixed-rate loan has a fixed interest rate. Experts explain a fixed rate as an interest rate set to stay identical for a loan term. It provides the borrower with an option to forecast their EMIs. Unlike variable interest rates, a fixed rate is easier to calculate and predict repayment. The loan is given at a fixed interest rate for a set period. As you know the overall interest cost, you can calculate the EMIs easily. A fixed interest rate is mostly given on instruments like mortgages, corporate bonds, etc. You will mostly see the fixed interest in percentage per annum. Fixed-rate loans in India are a good option for borrowers who want certainty about their payments. There’s no guessing about your interest rate throughout the life of the loan. There’s no need to make extra repayments or borrow more money to keep up with repayments. Fixed-rate loans are great if you are looking for a backup to face new financial challenges. It can also help in critical financial situations like buying a house or starting a business. How does a fixed-rate loan work? Borrowers are usually most attracted to loans with fixed rates as they do not fancy non-static interest rates during the loan period. This is because there is an increase in interest payments, which will extend to mortgage fees. With this rate, you can avoid the risks associated with variable interest rates. When you choose a variable interest rate, the interest on the loan will change periodically. The change depends on an index or base interest rate, which is uncertain. On the other hand, a fixed rate is always certain and stays constant throughout the loan tenure. It’s easy to calculate the cost overall of a fixed-interest rate loan. All you have to do is put the following into consideration; Amount of the loan, Applicable fixed rate. Loan repayment tenure. Once you know all these three factors, you can calculate your interest rate. Advantages and disadvantages of taking fixed-rate loans Generally, when considering a loan, there are a lot of things you should keep in mind. Some of these things can range from the present economy to when and how the mortgage can be fixed. Fixed-rate loans are more favourable to borrowers than lenders. Advantages of fixed-rate loans: Here are some of the known advantages of taking a fixed-rate loan; Predictability: With fixed interest rates, you can predict your monthly loan fees as the payments are static from month to month. Reduced rates: A fixed-interest rate loan comes with low interest rates, which are constant. Costs computing: It is much easier to calculate the lifetime borrowing cost of a fixed-interest rate loan as the cost is always constant. Certainty in interest rates: The fixed interest rates ensure clarity on the expected amounts to be paid, as it is constant. No movement in interest rates: Fixed rates protect the borrower from unexpected rate increments and ensure that the borrower is prone to market volatility. Disadvantages of fixed-rate loans Even though there are numerous advantages from the borrower’s perspective. There are also some disadvantages of taking a fixed-rate interest loan. Here are some of the drawbacks; Higher interest rates: Sometimes, a fixed-rate loan may come with a higher interest rate if you compare it with a flexible-rate loan. Dwindling rates: In some cases where there is a decline in the fixed interest rate, you will still be compelled to pay your usual interest rate, which will be higher at the time. Refinancing: Refinancing from a fixed-rate loan to another or a variable-rate loan can be profitable when interest rates drop. Although it may take too long, the accrued gain may be significant. Early payback charge: If you need to exit a fixed loan contract before the expiration of the contract term, you will be charged an early repayment fee. Thus, early payment of fixed-rate loans can be expensive. So, you must make this payment only if the savings exceed the foreclosure fee. [B-02] Conclusion In conclusion, getting a fixed-rate loan in India is very helpful, especially in favorable conditions. Moreover, Piramal Finance India is your best option if you are looking for a reliable source to get your fixed-rate loan. Piramal Finance offers the best services and plans for fixed-rate interest loans, business and housing loans, etc. They are always ready and available to you. To know more about this, visit their website today. They have many articles and blogs related to the topic that can help you improve your finance skills.

08-11-2023

Dream Mobile

Best Phones under 30000 in India - Price & Specs

Searching for the best phones under ₹30,000 in India? Whether you're a gamer, a photography enthusiast, or someone who values long-term software support, this guide will help you discover top smartphones that deliver premium features without the premium price.With so many new launches, mobile phone market has always been competitive. Hence, this article lists some of the best phones under 30000 to help you make the best choice. Best Smart Phone Under 30000 1. Samsung Galaxy A55 5G2. Nothing Phone (3a) Pro3. Motorola Edge 60 Pro4. Vivo T3 Ultra5. iQOO Neo 10R6. OnePlus Nord 47. Realme 14 Pro Plus 5G8. Vivo V50e Samsung Galaxy A55 5G Price (India): ₹25,999 – ₹31,000 (varies by storage/RAM configuration; often available for around ₹27,999 during sales) Features: Display: 6.6-inch Super AMOLED, 120Hz refresh rate, HDR10+ support, Full HD+ resolution Processor: Samsung Exynos 1480 (4nm) with Xclipse 530 GPU Battery: 5000 mAh with 25W fast charging Storage: Options of 128GB or 256GB (expandable via microSD) RAM: 8GB / 12GB Camera: Front Camera: 32MP Rear Camera: Triple setup – 50MP (OIS) + 12MP (ultrawide) + 5MP (macro) Pros: Bright, smooth AMOLED screen Solid build quality with IP67 rating and Gorilla Glass Victus+ Dual stereo speakers and memory expansion support Cons: No support for wireless charging Display resolution could be better for the price Review:This phone is a dependable choice in the mid-range category, delivering excellent visuals, solid battery life, and long-term durability. However, the camera and charging speed are just average. Nothing Phone (3a) Pro Price (India): Around ₹33,999 (estimated from European pricing) Features Display: Approx. 6.77-inch LTPO AMOLED, 120Hz refresh rate, peak brightness ~1300 nits Processor: Snapdragon 7s Gen 3 with Adreno 710 GPU Battery: 5000mAh with 50W wired fast charging Storage: 256GB RAM: 12GB Camera: Front Camera: 50MP Rear Camera: Triple setup – 50MP (main with OIS) + 50MP periscope zoom + 8MP ultrawide Pros: Transparent design and unique Glyph interface Excellent camera range, especially for zoom and portraits Long battery life with fast charging Cons: Optical zoom lacks perfect stability No IP68 rating or wireless charging Review:A stylish and camera-centric device, it stands out for its design and versatility. Ideal for content creators and those seeking premium aesthetics without crossing flagship pricing. Motorola Edge 60 Pr Price: ₹33,999 Features: Display: 6.7-inch OLED, 120Hz refresh rate Processor: Snapdragon 8+ Gen 1 Battery: 5000mAh with 33W TurboPower fast charging Storage: 256GB RAM: 12GB Camera: Front Camera: 50MP Rear Camera: Triple setup with telephoto lens (likely 50MP + ultrawide + telephoto) Pros: Near-flagship performance Smooth user interface with near-stock Android Reliable camera system including telephoto Cons: Battery could perform better Software updates not as prompt as competitors Review:Great for users looking for top-tier power and clean Android experience. The camera versatility and fast performance make it a standout at this price. Vivo T3 Ultra Price (India): ₹27,999 Features: Display: AMOLED with 120Hz refresh rate Processor: Snapdragon 7 Gen 2 Battery: 5000mAh Storage: 128GB / 256GB RAM: 8GB / 12GB Camera: Front Camera: 16MP Rear Camera: Dual or triple-lens with a 64MP main sensor Pros: Smooth display and user experience Efficient chipset for everyday use Cons: Preloaded bloatware may affect UX Camera performance not class-leading Review:A well-balanced smartphone that delivers reliable performance, smooth UI, and a good display—suitable for everyday users. iQOO Neo 10R Price (India): ₹26,998 Features Display: Likely 6.78-inch AMOLED/LCD, 120Hz Processor: Expected Snapdragon 695 / 778G Battery: 5000mAh with fast charging (44W–66W) Storage: 128GB / 256GB RAM: 8GB / 12GB Camera: 16MP front camera + 64MP main rear camera Pros: Solid gaming performance Rapid charging speeds Cons: Display may not be AMOLED Average camera performance Review:Ideal for budget-conscious gamers and power users. Performance is the focus here, while cameras are decent for casual use. OnePlus Nord 4 Estimated Price (India): ₹30,000 – ₹35,000 Expected Features: AMOLED display, 120Hz refresh rate Snapdragon 7+ Gen 3 5000mAh battery with 80W fast charging 128GB/256GB storage + 8GB/12GB RAM Camera: Triple setup with main 50MP OIS Pros: Clean software experience (OxygenOS) Strong performance Cons: No wireless charging Updates slightly delayed in recent models Review:Anticipated as a solid upgrade in the Nord lineup, this model is expected to bridge the gap between mid-range and premium categories. Realme 14 Pro Plus 5G (To be launched in India) Expected Price: ₹28,000 – ₹30,000 Expected Features: Curved AMOLED display, 120Hz refresh Dimensity 7050 or Snapdragon 7 Gen series 5000mAh battery + fast charging Rear camera: Likely 50MP Sony IMX890 OIS Pros: Premium display and build Sony sensor for flagship-grade photos Cons: Software UI may feel bloated Only 2 years of major updates Review:If camera and design are key, this phone could be a great value-for-money option in the upper mid-range. Vivo V50e Expected Price (India): ₹25,000 – ₹28,000 Expected Features: AMOLED screen, ~120Hz Snapdragon 6 Gen 1 5000mAh battery 8GB RAM / 128GB storage Cameras: Dual setup with 64MP OIS + depth/macro Pros: Light and sleek design OIS-enabled camera for better low-light shots Cons: Not suited for heavy gaming Bloatware in Funtouch OS Review:An elegant device perfect for casual users focused on style, camera stability, and daily multitasking. Conclusion Great battery life, fast charging, and strong performance are key features to look for in the top phones under 30,000. Plus, you won't have to compromise on an average camera when looking for the best phone under 30,000 in India. Visit Piramal Finance if you are interested in more articles about the best-performing electronics in India.

08-11-2023

Personal Loan

Reasons to apply for wedding loan

Weddings are the dream events in life and should be cherished for the remainder of life. One should ensure that no expense is spared when it comes to weddings. Whether splurging on exotic destinations or arranging for a 7-star menu, weddings provide an avenue for couples to showcase their status and ensure that the wedding event is discussed for generations. It is common traditional wisdom that loans should not be taken for weddings. But that is a thing of the past. The times are changing, and we should ensure we do not become an impediment to the frolic of youngsters. When the time comes to fulfil the cherished dreams of your daughter, taking a wedding loan becomes inevitable. [B-01] Thanks to the myriad options available, there need not be any budgetary considerations for the dream wedding. Top 6 Reasons to Apply for a Wedding Loan The top six reasons why taking a wedding loan is the best choice in modern life are listed below. 1. Wedding loans are a wonderful option in the absence of savings. Life is full of unexpected events. The expenses across your life may affect your savings and diminish the funds available to conduct a destination wedding. Worry not! Banks and private financial institutions are enhancing their credit portfolios and giving loans for destination weddings even in the absence of collateral. When the wedding day arrives and your bank accounts are unable to meet the demands of your dream wedding, wedding loans will come to your rescue, removing any obstacles and ensuring that the path to the wedding is paved with roses. One pivotal point before applying for a wedding loan is to ensure that you have a correct idea regarding the quantum of the loan. One should do an incisive financial analysis, and only that loan amount should be borrowed for which comfortable, convenient, and stress-free instalments or EMIs can be made. 2. Swift disbursal of wedding loans in a convenient fashion. Imagine applying for a wedding loan and getting through the process in minutes. Too good to be true? However, this is the reality when it comes to satisfying your lifelong quest to participate in and arrange a destination wedding. The approval status of the wedding loan is conveyed to the applicant in a matter of minutes, and the loan amount will be reflected in the bank account in 2 working days. Depending on the borrower’s credit rating and the interpersonal relationship between the applicant and the bank, some banks go the extra step for elite customers and make sure that the total wedding loan amount is disbursed in 24 hours. 3. Forget about credit cards, as wedding loans demolish them in terms of interest rate. Everyone knows how credit cards become agents of financial ruin when large expenses are incurred. Credit card holders may find it attractive to charge their cards for wedding expenses. Say no to this and go for a wedding loan instead. Why? It’s simply a huge money saver in terms of total interest paid. Wedding loans fall under the ambit of personal loans. For this category, the applied interest rate is lower when compared to the gargantuan interest rates charged by credit card companies. Weddings are moments of great joy and hope. Never make the mistake of turning such a joyful occasion into a bad memory by spiralling into unrecoverable debt. 4. Wedding loans entail attractive repayment options. Forget the hassles of timely repayment of wedding loans. Thanks to the guidelines of RBI, banks are mandated to offer easy and flexible repayment options to the borrowers of wedding loans. However, it is entirely up to the borrowers to determine the repayment structure. If the applicant has a comfortable financial position, they can go for a shorter loan tenure. But it is advised to go for a longer loan tenure because of the extra expenses that may be incidental after a few months to a year after the wedding. 5. Forget about prepayment penalties. Weddings are the source of great collections of funds. Wedding gifts in India constitute a great portion of cash as favours are accumulated over the years through give and take. An Indian wedding may result in the collection of huge cash deposits. The same amount can be used to repay the loan in full and avoid the incidence of interest. This is a win-win situation for both the bank and the applicant. The banks enjoy these cash flows as collateral, and the applicant can remove the financial obligation by clearing the loan quickly. As a matter of abundant precaution, the applicants are strongly advised to go through the contract of the wedding loan to ensure that there are no prepayment penalties. 6. Enjoy the fruits of an enhanced credit score. The young couple will need future finances to build their dream home or go on a destination honeymoon. What better way to build their credit score than by promptly making EMI payments and ensuring their credit score is green? The financial aspects of a good credit score are decreased interest rates and enhanced loan terms, all of which can be a boon in disguise for the couple’s stability after the wedding. Therefore, it is advised not to make a single late payment on your wedding loan. [B-02] Final Thoughts Say goodbye to budget limitations or a dearth of funds for your dream wedding. Wedding loans are the best thing that happened on the Indian wedding scene, as we Indians give much importance to this special event. Savings or no savings, a wedding loan can act as your best friend when meeting various expenses. Make sure to follow financial discipline after availing of the loan and make sure the repayments are made promptly. To read more such blogs, visit Piramal Finance and explore their products and services.

08-11-2023

Personal Loan

Know the Key Points Between an Education Loan And Mortgage Loan

With the growth in the financial market, many banks and NFBCs are offering different types of loans. The type of loan you get depends on your requirements. This article will walk you through two types of loans—an education loan and a mortgage loan—and their differences. An education loan is an unsecured loan borrowed to finance higher education. On the other hand, a mortgage loan is a secured loan offered against collateral and can be used for various purposes like funding your child’s education, renovating your house, etc. Read on to learn how these two loans differ. Education vs Mortgage Loan: Key Differences Here are the 7 key differences between mortgage loans and education loans. 1. Meaning A mortgage loan is a type of secured loan that provides funds in exchange for an immovable asset, such as a house or a piece of real estate. Until you repay the loan, your lender will hold this asset as collateral. It is a contract between you and your lender, in which you consent to the lender’s right to repossess your asset if you fail to repay the loan. An education loan is unsecured, meaning it is often provided without any collateral in exchange. It is a sum of money that is borrowed to fund higher education expenses. Many banks and NFBCs offer education loans to college-going students. 2. Usage You can use a mortgage loan for a range of purposes, like Financing an urgent medical need Paying for the higher education of your children Paying for the wedding of your children Growing your business Renovating a house On the other hand, you can use the sum of an education loan only to pay for your tuition fee and other educational expenses. 3. Loan-to-Value Ratio The amount you get from a loan as compared to the actual worth of property (collateral for a mortgage loan) and course fees (for an education loan) is known as the loan-to-value ratio. Typically, banks and NFBCs offer 60%-70% of the property’s market value in a mortgage loan. In the case of education loans, lenders provide the borrower with the complete sum that pursuing their education might need. The fees may also include tuition fees, accommodation charges, etc. 4. Repayment Schedule In both a mortgage and an education loan, you repay the loan amount in the form of EMIs. The EMI amount is generally decided beforehand. In most cases, banks suggest you the best EMI amount based on your monthly income. But you can even negotiate the EMI amount based on your repayment ability. In a mortgage loan, the repayment schedule begins once the loan amount is transferred to your registered bank account. For instance, if you took a loan at the start or middle of the month, the bank will set a date for the EMI payments in the following month. However, an education loan borrower is a student with no source of income. That is why the repayment is scheduled to begin after the course completion for which the loan was taken. Also, lenders do not ask for repayment right after the course completion; instead, they offer a six-month grace period to find a job. Once you find a job within the grace period, the repayment cycle begins through EMI. If a salaried person opts for an education loan, the repayment schedule is the same as for a mortgage loan. 5. Repayment Tenure The repayment tenure for a mortgage loan can go up to 15 years, as they are offered against collateral. For education loans, the tenure goes up to 8 years, but it varies from lender to lender. 6. Disbursal of Loan Amount For mortgage loans, the lenders disburse the loan amount into the borrower’s registered bank account after the approval of the loan. The borrower is free to use that sum for any purpose. In the case of education loans, the loan amount is not directly handed over to the borrower or transferred to their bank account. Instead, the lenders transfer the loan amount directly to the account of the educational institution from where they will study. 7. Tax Benefit According to Section 24(B) of the Income Tax Act, salaried people can benefit from the income tax deduction for mortgage loans (also known as loans against property). If you use the loan amount to finance a new house or house renovation, you may file for a tax return of up to ₹2 lacs you paid as loan interest. As soon as you begin making repayments for an education loan, you can use Section 80E of the Income Tax Act to claim a deduction in the monthly interest you pay. However, the deduction is not allowed on principal repayments. Benefits of Applying for a Loan at Piramal Finance The following are the benefits of applying for a loan at Piramal Finance: There are little to no charges for foreclosure and early payments Minimal documentation Smooth process with quick approvals and disbursals Affordable monthly EMIs Flexible repayment terms, with the tenure ranging from one to five years Combined incomes for maximised loan eligibility Accessible to both salaried and self-employed individuals [B-02] Conclusion Both mortgage loans and education loans serve different purposes. Get an education loan if you wish to pay for your education in India or abroad. It is simple to obtain and does not need collateral. However, go for a mortgage loan to fund an urgent medical bill, pay for your wedding, expand your business, or renovate your home. To acquire a loan from Piramal Finance, apply here or call 1800 266 644. With Piramal Finance, you can be sure of personalized customer service and customized loan plans. You can also check out other such articles, financial products, and services on their website.

08-11-2023

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All you Need to Know About the Gratuity Rule

You must be wondering about your gratuity entitlement if you are an employee. You may have heard about it but need clarification on what it means or how much you can get as an employee. This article will discuss the gratuity rule and how it applies to you as an employee. Keep reading to gather more knowledge about this. This blog post will teach you useful information about it. [B-01] The gratuity law can be claimed by employees who have completed five or more years of service. The gratuity law can be claimed by employees who have completed five or more years of service. This is usually taken as the end of their employment. With an employer and is paid to them on retirement or exit from the job. The gratuity amount that an employer pays to an employee after completing five years of service (or more) is called gratuity. It may be taxable in the employee’s hands if it exceeds Rs 50 lakhs per year. Or such other amount prescribed by law as per Section 32(c) of the Income Tax Act of 1961. The gratuity amount is the last drawn salary multiplied by the years of service completed. The gratuity amount that an employee receives is not taxable in your hands. And will be transferred to you after deducting an appropriate sum for provident fund contributions. Employers pay it to employees on retirement or when they leave their jobs. In the Indian context, gratuity is paid to employees who have completed five or more years of service. It is calculated as the last drawn salary multiplied by the number of years completed. Completed in service, and it is not taxable in the hands of an employee. The amount may be increased if there are exceptional circumstances, such as death due to accidents or natural causes. Retirement on grounds other than age; resignation with one month’s notice, etc., up to a legal maximum (currently Rs 200000/-) . Tax-Related Benefits of Gratuity ● The income tax that one can save from this goes up to 20%. ● With recent modifications to Section 10, gratuity is tax-free up to Rs. 20 lakh (10). ● It is a one-time cash payment made to the worker upon retirement. ● It is a tax-free amount paid by the company, not the employee. ● Statutory gratuities are the only payments free from income taxes. A gratuity is a sum of money given by an employer to a worker in recognition of their efforts, according to the Income Tax Act of 1961, which has exempted them from income tax ever since gratuities are not taxable. The maximum annual gratuity is determined based on the age at which you retire or leave your employer’s employment. It is calculated as below: The gratuity is calculated as follows: ● Last drawn salary ● 15/26 of the last drawn salary (for conductors) or 15/30 of the last drawn salary (for non-conductors). ● This can be reduced by up to 50% if there has been a long illness, maternity leave, or other circumstances. If you have worked for more than ten years with the same employer, you are not entitled to any other benefits. Like medical reimbursement, you may get more monetary relief instead of a pension plan, depending on your position within that organization. ● If you have retired from service, your gratuity will depend upon whether you were an employee during all these years, exactly as per the above calculation methodologies. Last Drawn Salary: 15/30 Number of Completed Years ● Last drawn salary: The average of the last ten months’ salary ● 15/30: The ratio of gratuity to last drawn salary NWC (number of completed years): The number of years you have worked for the company divided by 16. The gratuity limit has been raised from Rs 10 lakh to Rs 20 lakh in March 2018. The gratuity limit was raised from Rs 10 lakh to Rs 20 lakh in March 2018. This is the maximum amount an employee can claim as gratuity, and it’s a fixed amount, not a percentage of their salary. Gratuity is also a gift or parting payment, but it does not have to be paid in cash. Most companies encourage employees to use their savings or tax-free bonds. Gratuity rules for 2021 The 2021 gratuity rules went into effect on April 1, 2021. The following changes that are mentioned below were made. The following items previously considered will be excluded from salary per the new definition under the gratuity rules 2021: ● Bonus, pension, PF contributions, transportation allowance, HRA, overtime, and gratuity. ● Employees’ in-hand pay may be reduced due to these new laws taking effect. The deduction for social security programmes like the Provident Fund (PF) will go up. ● Due to the new law’s restriction, an employee’s allowances cannot exceed 50% of their base pay. Employers must raise employees’ basic salaries by 50%; it will be done to comply with this rule by limiting the allowance to 50% of the total salary. The employer will also pay more in staff gratuities, which are given to employees who have been with the business for more than five years. Employees will receive more benefits than before upon retirement as a result. Retirees should know their gratuity entitlement under the law. ● The gratuity law applies to all employees, regardless of age or service length. ● Employees who have completed five or more years of service are entitled to a gratuity of one month’s salary for every year worked over five years. ● The gratuity amount is the last drawn salary multiplied by the years completed in service (i.e., $80,000 x 6 = $480,000). [B-02] Conclusion This article has helped you better understand the gratuity rule. Gratuity entitlement is a critical topic in India. And we should all be well informed about it to make informed decisions regarding our future. The gratuity rules 2021bought Some significant changes in the gratuity rules have been explained in this article. For additional reading, you should head to Piramal Finance and increase your financial literacy. Keep reading to enhance your knowledge.

08-11-2023

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Top Biggest Upcoming IPO For The Year 2022

If you are beginning your investment journey, you might have missed out on the IPOs of Indian companies. These are very popular among investors as they give good returns within a year of their listing on the stock exchange. If you have missed out on these IPOs, you need not worry. In this article, you will find everything about the top 10 upcoming IPOs in India for 2022. These IPOs will offer you a great chance to create a portfolio with high returns. What is an IPO? IPO is the initial public offering of a company’s shares. This process is typically done when a company has become stable, which usually takes about 3-5 years. Many companies will hold their IPO for some time after they have been listed on the stock exchange. In India, a company can list its shares on one of the two public stock exchanges: the BSE, or Bombay Stock Exchange, based out of Mumbai and the NSE, or National Stock Exchange, based out of New Delhi. You can choose from a range of IPOs, based on what you want to achieve through your investment. Top 10 Upcoming IPOs in 2022 Following are the best upcoming IPOs of 2022 that you should consider investing in: 1. MobiKwik As per the latest IPO news, Mobikwik will list itself on the stock market in 2022, and the IPO will be for ₹15,000 mn. The company will list its IPO both on the BSE and NSE. Founded in 2009 by Bipin Preet Singh and Upasana Taku, Mobikwik is an Indian fintech company registered under the name One MobiKwik Systems Pvt Ltd. It provides phone app-based payment services. The Mobikwik Wallet is one of the most prevalent mobile wallets in India. 2. GoAir GoAir is an ultra-low-cost carrier, with a rising share in the Indian market. Its share has risen from 8.8% in the fiscal year 2018 to 10.8% in 2020. The airline currently has 56 aeroplanes, connecting 28 domestic and 9 international destinations. In its initial public offering, the airline plans to list up to ₹3,600 cr in equity. 3. Penna Cement One of India’s leading cement producers, Penna Cement operates out of four cement factories in Telangana, Andhra Pradesh, and Maharashtra. Its total production capacity is 10 mn tons a year. The company is projected to raise ₹1,550 cr through a public equity offering, of which ₹1,300 cr will be raised through a new equity share issue and ₹250 cr through an offer for sale. 4. Arohan Financial Services Arohan Financial Services works in India’s low-income, unexplored states, making it one of the leading NBFC-MFIs in the country and earning it a spot in the top upcoming IPOs in 2022. The company provides a range of credit and insurance products. Under credit, the company offers income-generating loans and other financial aid. It also provides life and health insurance products. Arohan Financial Services plans to raise between ₹1,750 cr and ₹1,800 cr. Through its IPO, ₹850 cr will be sold in fresh issues, and the rest will be sold in a secondary market. 5. Delhivery In the fiscal year 2021, Delhivery was one of India’s largest and fastest-growing fully integrated logistics service providers. The company provides a wide range of logistics services, including heavy goods delivery, express parcel delivery, partial truckload and truckload freight, warehousing, and supply chain solutions. According to the latest IPO news, it will sell an offering of new shares worth ₹5,000 cr while a simultaneous offer to sell (OFS) component worth ₹2,460 cr. 6. Fincare Small Finance Bank With a focus on unbanked and under-banked clients in rural and semi-urban areas, Fincare is a digital-first small finance bank. Their business model highlights financial inclusion and provides affordable financial products and services to people and firms. A ₹1,300 cr Fincare IPO will include a new issue of equity shares of ₹330 cr and an OFS of up to ₹1,000 cr. 7. Seven Island Shipping Incorporated in 2002, Seven Island Shipping trades petrochemical lubricants, crude oil, and other commodities. One of the top priorities of this company is to offer safe transportation while also being clean and efficient. As one of the top upcoming IPOs in 2022, the company plans to raise funds worth ₹600 cr, with a fresh issue of ₹400 cr and OFS worth ₹200 cr. 8. SREI Equipment Finance SREI Infrastructure Finance Ltd owns and operates this Kolkata-based company, SREI Equipment Finance. It provides loans to buy equipment for construction, irrigation, water supply, mining, IT infrastructure, healthcare, and farming. A total of ₹2,000 cr will be raised through its IPO, which consists of equity shares of ₹1,100 cr and OFS of ₹900 cr. 9. ESAF Small Finance Bank Among the small businesses in India, ESAF Small Finance Bank is the principal bank in terms of the number of clients, average earnings, interest rates, payments from deposits, loans to rural areas, and the number of loans offered. A new issue of ₹800 cr worth of shares will be made, which will include an OFS worth ₹200 cr. 10. Inspira Enterprise India Inspira Enterprise India works on digital transformation services in the cybersecurity industry. As one of India’s leading firms in this field, Inspira is known for providing only the best to its clients. The company’s IPO includes a public share sale of ₹300 cr, followed by an OFS for equity shares of ₹500 cr. [B-02] Conclusion The top upcoming IPOs in 2022 look very exciting for investors. These IPOs show that the Indian economy is thriving. With so many new companies going public, consumers can enjoy more options and lower prices. If you’re interested in investing or want to learn about some of these great companies, you should read more articles like this on Piramal Finance. While there, you should also take a look at their financial products and services to help you build your plan your finances better.

08-11-2023

Personal Loan

Everything You Need To Know About Vacation Loans In India

Whether a family or a solo trip, a vacation is necessary for everyone. Visiting and exploring new places and having new experiences have benefits and advantages. But more important than going on vacation is having enough money to finance that vacation. Funds are important to cover travel tickets, food, accommodations, and other miscellaneous expenses. It’s also important to keep a spare for emergencies and unforeseen events. Due to this, taking a vacation loan comes in handy. While planning a vacation in India, securing a vacation loan is always better. It can help you finance your travel with ease. Furthermore, it is easily repayable in installments. But what exactly is a vacation loan? Is it just like a general personal loan? Let’s find out. What is a vacation loan? A vacation loan is identical to a personal loan for travel. However, it is specifically taken to pay for travel-related expenses. It includes hotel fees, meal bills, flight tickets, rental car fees, emergencies, etc. A loan for travel can help you bear the cost of a getaway without causing major changes in your savings. It is one of the best ways to get a lump sum of money you can spend on anything related to a vacation. Importance of a vacation loan Taking a vacation loan is a smart decision while exploring new cities because: A vacation loan allows you and your friends or family to travel far and wide. A vacation loan has zero hassles, as you do not need to put up collateral or find someone who will act as your guarantor. A vacation loan has a relatively low interest rate, making it easy for you to have a fixed repayment plan. There are no restrictions on a vacation loan, as you won’t need to disclose details. After paying for the necessities, you can even buy a gift for loved ones with the remnants of the vacation loans. Vacation loans usually come with very easy and flexible payment options. For example, you can structure the loan to be paid back within 1–5 years. Guides for Securing a Vacation Loan in India There are certain things to consider before applying for a vacation loan. You should be aware of the following factors before taking a vacation loan; Decide your destination: Your destination choice determines a successful vacation. Whether you and your family or friends like to spend time in the mountains or on the beach makes the planning process of applying for a vacation loan much easier. Set a budget: It will be smart to allocate a budget to your vacation loan before planning it. Start by allocating a budget for expenses. Take accommodation, food, sightseeing, and shopping expenses into account. Once you know all these costs, make a list. Knowing how much money you need from a vacation loan can also help. Check the existing fund balance: Assess the funds you have in your savings. It can help you decide the amount you should get as a vacation loan. Fulfill the requirements: There are eligibility criteria to be followed when processing a vacation loan in India. The following are the criteria: You have to be between the ages of 21 and 60. You may need to have stable employment for at least a year. You will need the following documents at hand during the application for the loan: Photo identity proof Current photograph Proof of your address Document of income, which includes Form 16 or a duly filled income tax return Salary slips of at least a year from the date of application Your credit score is an indicator of your creditworthiness. The higher your credit score, the better your chances of getting a low-interest vacation loan. Make sure you only have a few personal loans running simultaneously. Steps for Applying for a Vacation Loan in India Here are the simple steps you should follow to apply for a vacation loan in India: First, check your budget and finalise how much money you need. Then, go to any reputed credit score checker and check your credit score. Finalize where you want to go and create a plan for the vacation. Go around and look for multiple vacation loan offers from banks. Pick the best offer and apply for the loan. Provide the necessary documentation. Accept the vacation loan and finance your trip. Guidelines Issued by the RBI Related to Vacation Loans: The Reserve Bank of India has issued guidelines to both borrowers and lenders. It ensures that the vacation loan process is beneficial and fair to both parties. Given below are salient points to follow when securing a vacation loan: All applications for a vacation loan must be complete and include all the necessary information. It should contain the necessary details about fees and payments. So that borrowers can compare rates and make an informed decision. Verifying the vacation loan application must be done within a reasonable time. If additional information is required, the lender must contact the borrowers immediately. If vacation loans for amounts less than Rs. 2 lakhs are rejected, the applicant must convey the reasons for the rejection in writing. They must ensure the timely disbursement of vacation loans and communicate any changes in terms or conditions to the borrower. If they need to recall, cancel, or request faster repayments, they should provide adequate notice to the borrower. Borrowers should not be discriminated against based on religion, caste, or sex. [B-02] Conclusion Getting a loan to enjoy your vacation has always been a lot of work. A vacation loan in India is the most optimal means to enjoy a holiday without worrying about funds. Gone are the days when you would have to spend months saving money for your dream vacation. A vacation loan from Piramal Finance can help you visit your dream destination. The company allows you to plan your dream holiday with multiple benefits. They offer services like flexible loan repayment tenures and minimal interest rates. For more information, you can visit their website now.

08-11-2023

Business Loan

MSME Loan - An Ideal Choice for Startup Businesses

The Government of India has launched many schemes in the form of loans and subsidies to help and promote individuals in their business ventures. One of them is the MSME loan scheme. Its mission is to finance and support medium-sized, small, and microbusinesses. Do you also want funds from the MSME loan for your startup? Well, this article will help you navigate through it in detail. In this article, we will discuss the MSME loan scheme, why it was introduced, its benefits, and how to get one for your new business. [B-01] What is the MSME loan scheme, and what is its primary objective? The MSME Ministry of India is an individual body. It has executed and implemented the MSME loan scheme for the betterment of emerging small businesses. This loan system provides unsecured loans to individual, small business units to help them meet their business-related expenses. This is its prime objective. Not only the government, but private financiers and private banks have also started giving MSME loans to individual, rising businesses. The main differences between government and private MSME loan schemes are the interest rate of the loan and the loan amount. This loan has self-tailoring features. This means you can get an MSME loan scheme as a short-term loan scheme, a medium-term loan scheme, or a long-term loan scheme. You can take it as a cash credit, letter of credit, working capital loan, etc. You can use this lump sum amount to buy raw materials, use them in transportation, or pay for any services. What are some of the exclusive benefits of the MSME loan scheme? Here are some of the exclusive benefits of getting an MSME loan: Low rate of interest: Small and microbusinesses are charged low interest rates by banks. This is to ensure that the minimum amount is spent on repaying the loan and the maximum amount goes into funding the business venture. The rate of interest for MSME loans in India is somewhere in the range of 10 percent to 25 percent per annum, with an exception of 1 to 1.5 percent by some lenders like FlexiLoans and ZipLoan. Accessibility: MSME loans in India are highly accessible and easy to apply for. The whole process is hassle-free, with serious exemptions. This makes it an ideal loan system with the fewest cons. Collateral-free: It is an unsecured loan system. There is no requirement for collateral, a security deposit, or a guarantor. If you don’t have any of those, you don’t need to worry about your loan getting sanctioned. This decreases the burden on small and microbusinesses. It helps them see beyond this. High flexibility: MSME loan schemes are also a short-term affair. You require them only to cover your short-term requirements. An MSME loan isn’t a long-term commitment. This enables you to easily focus on developing your business. The long tenure of repayment: The tenure of repayment is not fixed for every bank, but it can often be started at 3 years and stretched up to 15 years. This seems like a reasonable amount of time. You can repay your loan within this period in the form of instalments. High loan amount: If you get your MSME loan sanctioned, your loan amount can go up to Rs 50 lakh. You can use this in your business venture. You can use it to buy new types of machinery, and raw materials, expand your manufacturing, hire more workers, and pay for other services. What is the eligibility to get an MSME loan in the first place? Here are some of the eligibility requirements to help you get an MSME loan: Type of business: It is the type of business that decides whether you are eligible for MSME loan schemes or not. The types of businesses that are eligible for MSME loans are: Manufacturing sector Service sector Any form of non-farming activity Business experience: In your current business, for which you are applying for the MSME loan, you must have a minimum of one to three years of business experience. This is due to the fact that you must demonstrate to the banks that you have extensive experience in the business venture in question. Business turnover: A business turnover of about 12 lakh rupees per year is the benchmark for an MSME loan. However, it is again very subjective because different banks have different criteria. Credit score: It is a common analogy that a good credit score will increase your chances of settling on a better deal on any type of loan. This stands to be true here also. If your credit score is 750 or more, that is always a plus. This increases your chance of getting a larger loan at a lower rate of interest. Clean loan history: If you have been regular at paying your previous debts, then you are always a way ahead. Banks look for candidates who have a clean track record and who pay their instalments regularly. [B-02] Conclusion: The interest rates from the top banks for MSME loan schemes range between 8.5% to 15% per annum. Even some of the popular banks go lower than that with increased tenure of repayment. You should use calculators in this case, where you can spin different loan amounts and interest rates to see what suits you best. You should focus on improving your credit score, improving your business venture, and increasing your business experience to make a better pitch and get a decent loan. If you prefer consuming articles and blogs on these topics, you can have a look at the official website of Piramal Finance. They have some amazing content on loans, investments, financial consulting, SIPs, etc.

08-11-2023