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EPFO UAN Activation: How to Activate Your UAN Number Online

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

08-11-2023

Business Loan

How is a Mudra Loan Different from a Business Loan?

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

08-11-2023

Business Loan

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

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

08-11-2023

Home Loan

Top Advantages of Taking a Home Loan

For most people, owning a home is a major accomplishment and the fulfillment of a long-held goal. If you own your home, you can design it to meet your needs and preferences. However, constructing your ideal home might be expensive. For that purpose, you can apply for loan aid and use a home loan to boost your budget. Continue reading to find out more about what a housing loan is and how it can help you buy the home of your dreams. [B-01] What is a Home loan? A home loan is a secured loan that is received for the purpose of buying a property by pledging the collateral as security. Housing loans enable high-value financing with affordable rates of interest and substantial durations. EMIs are utilized to repay these loans. The borrower receives ownership of the property immediately after completion. A type of financial resource offered by banks and other financial institutions is a home mortgage. These banks and other financial institutions will assist you in raising your budget so that you can buy a house with the loan amount provided. If you meet the requirements for a specific home loan tenure, you may apply for one. You must repay the loan amount you took out over the agreed-upon time, with interest calculated at the predetermined rate. The home loan is repaid in equal monthly payments, just like any other loan. Most banks today provide home loans that enable you to build a home from the ground up in addition to purchasing pre-built properties. You can also use home loans for remodeling or repair projects. Financial institutions will cover up to 75–90% of the value of the home, and you will be obligated to make an initial deposit (down payment) exactly equivalent to the remaining amount. With house loans, it’s simpler than ever to finance your own home. What Advantages do Housing Loans Offer? Despite the considerable sum and more extended repayment period, your home loan does come with several advantages. The perks of taking out a home loan are highlighted below. Feeling of achievementApart from the sentimental value, purchasing a home is one of the largest financial investments you may undertake in your lifetime. The majority of us invest a significant amount of money in our homes, making them the most important part of our financial portfolio. A minimal rate of interestThe decision to purchase a home is generally made over a period of 10 years, and there may be multiple cycles of rising and falling interest rates. Consequently, you may be sure that you will benefit from declining rates at some point during the cycle.Actively managing your home debts is the smartest approach to minimizing borrowing costs. That’s not as difficult as it may appear. Various uses:You are free to apply for a home loan to buy any kind of property. For instance, you may use the loan money to acquire a plot of land, build a new home on land you already have, or buy a brand-new, used, or even vacant property. Also, with money obtained through a home loan, you can renovate or rebuild your property. Dynamic repayment termYour home loan can be reimbursed over intervals of up to 30 years. Longer terms lead to smaller, more economical Equated Monthly Instalments (EMIs). Due to their flexibility, home loans are a very appealing option. Different types of home loansYou can select between fixed and adjustable interest rates for home loans. If you choose a fixed-interest loan, your EMI won’t change during the loan. In comparison, when you choose a home loan with a floating interest rate, your EMI is affected by the current interest rates in the real estate market. Your variable rate home loan EMI may drop significantly if there is little demand for housing loans. The Next Big Thing: Home Loans and Tax Benefits Home loans include several important benefits, including tax savings. You are qualified for tax savings on principal repayment of up to INR 1,50,000 under Section 80C of the Income Tax Act of 1961. You might deduct up to INR 2 lakh in tax from the amount of your interest on your mortgage that goes toward repayment under Section 24. Under Section 80EEA, the new homeowners are entitled to a taxable advantage of up to INR 1.5 lakh. The home loan had to be approved between March 31, 2019, and April 1, 2022. The first step is to complete an application and submit the required documents. After that, you must wait for verification and obtain the sanctioned letter. When you receive the letter, sign it, pay the security fees, and wait for a technical inspection of your property. After the property verification is complete, you sign the final agreement with the lender or bank and then sit tight for the loan to be reflected in your bank account. [B-02] Bottom Line It can be tough to select the house loan provider that would be best for you when there are so many of them. At Piramal Finance, we put a lot of effort into giving our customers the best options to make buying a home easier. Check out the different plans that facilitate your choice between construction loans, renovation loans, home extension loans, home loan balance transfers, and so many more advantages. We recognize the value of home ownership and provide home loans that can enable the construction of your dream residence.

08-11-2023

Other

How business financing is helpful in 2025

What is business financing? How do I get it? How much does it cost? Even large-cap companies often search for other sources of funding to satisfy their short-term needs. A small company must choose the right kind of business financing for its needs. Business financing is the process of providing funds in exchange for some form of collateral or other security. The term “financing” is typically reserved for larger companies that do not have cash flow enough to purchase assets, such as machinery and inventory. If you don’t pick where to receive financing properly, you might be in for a big loss. This is why you must check the repayment conditions and interest rate to go forward. [B-01] Financing decisions play a key role in the company’s development. They are usually taken up by people who have the needed expertise. One needs to be sure of their financing needs. This will help in choosing the correct business financing role. During these times when companies are funded, financing has a long way to go. In old times when the funding spree was not going on for start-ups, owners had to borrow money. They used to go to banks or NBFCs for capital. But now, business financing is made easy. Keep reading to learn more about this. Why should you consider obtaining a business loan? Working hard is the road to success. But, you should also have some cash on you. Many small company owners get business loans when they want funds to keep their operations running. If you don’t earn enough money to cover your expenses and stock up on supplies, you may need to take out a loan. Manufacturing facilities often take out loans to pay for the pricey capital equipment they need. Marketing campaign spending for publicity of the company’s goods or services is essential, but it may be costly for a startup. To cover charges, you may need business financing. The value they offer to your company’s culture, operations, and bottom line may make hiring excellent team members costly. It would be simpler to identify and recruit individuals who can help your company expand if you can acquire a loan. Save some money in case of urgency. This includes equipment breaking down or a client not paying on time. You may need to take out a loan to keep your company running during these difficult times. Applying for a business loan may be time-consuming. There are a few things you can do to ensure your application is as perfect as possible, regardless of the kind of loan you wish to apply for. It might take anything from a few minutes to a few hours to apply for a business loan. The owner decides to finally choose the right loan provider. Let’s go through the remaining four options for getting business financing. Bootstrapping Many successful businesses adhere to the notion of launching a firm with their cash, and this strategy does as well. This is called bootstrap. They don’t need business financing. Owner financing is the use of one’s own money and resources. It is essential if you want to keep your expenses as low as feasible. The control of the company is not diluted. Ownership lies with the founders. When the government distributes money or reduces tax rates, it is called “subsidy financing.” · Sales provide the funds required for the firm to remain open and running well. Cash from Investors Venture capital, abbreviated as “VC,” is a form of private equity. It is a business financing whose primary purpose is to make high-risk investments in early-stage, non-publicly listed enterprises. Venture capital differs from private equity in that it invests in a new company’s expansion capital. This kind of business financing is ideal for organizations that have progressed beyond the “seed stage” and are searching for funding in series A or series B. Most venture capitalists do not immediately invest in new enterprises. As a result, its purpose is to assist organizations in growing quicker than they would on their own, such as when a company wants to go worldwide. Angel Investors Angel investors are also known as “private investors.” They are wealthy individuals who assist small firms through a business loan in return for a stake in the company. On occasion, angel investors are also referred to as venture capitalists. They are also referred to as “seed investors”. They are frequently the first to put money into a new enterprise. Angel investors often provide smart funding as well. In addition to financing financial help for a project, they often give their knowledge and networks in the same industry. As a result, having an angel investor whose expertise and business financing abilities are comparable to those of your organization’s sector is beneficial to your firm. Many outstanding firms are performing well in the market today due to the expertise and resources brought to the table by their angels. [B-02] Summing up If you want to acquire business financing, you will need proper information about the same. Debt financing is without a doubt the most convenient option for a small company to get funds. This is true even if the company owner lacks financial support from family or friends.

08-11-2023

Tips & Advice

Here Are the Top 5 Golden Tips for First-Time Home Buyers

Most people make their biggest investment when they buy a home. Buying your first home is one of the most important moments of your life; it is just like going on your first date or getting your first job. When buying your first home, you need to learn to plan your budget, choose the right type of property, think about location and amenities, check the builder’s reputation, and get a home loan. Getting a home loan and making sure you can afford it takes a lot of work. Want to buy your first house? What are the best tips that will make the process smooth for you? [B-01] Top 5 Tips for First-Time Home Buyers in 2025 1. Manage Your Finances First, you need to figure out how much money you have and how much you will need. Prices for homes vary a lot depending on the type of property and its location. So, you must decide beforehand the amount of money you can spend. You might want an expensive house in a posh neighbourhood, but it might put a dent in your finances. A home loan eligibility calculator is one way to check how much money you can borrow with a home loan and how much you will have to repay each month. For this, you should take into account all your financial obligations. Ideally, your EMIsshould not be more than 40% of your take-home pay. You can also use a home loan affordability calculator to see if you can afford a loan. 2. Decide on the Type of Property The type of property depends on what you can afford. Think about how many family members you have, how many rooms you need, and so on. Find the best fit for your needs and your budget. You should also think about why you want to buy a house. If you want a house to live in, think about how long you plan to stay. If you are buying a house to rent it out, it is a good idea to think about what the tenants in that location are looking for. Based on the type of property and the purpose of the purchase, you can also avail yourself of some tax benefits. Under Section 24 of the Income Tax Act, you can claim up to 2 lakhs on the interest paid on your home loan. 3. Think about the Location and Amenities When buying a house, choose the right location, especially in a big city where commute times can be long. Consider where you work, how far away the schools and hospitals are from your home, how easy it is to get to public transportation, etc. Check if the neighbourhood has a proper sewage system, good road infrastructure, etc. Because the location also dictates the property prices, you should prioritise some of these factors and pick a location that best suits your budget and needs. For example, if you use a personal vehicle, you can choose a house far away from public transport hubs. If there are no children in your family, you can choose a house with no schools nearby. You should think about what kind of amenities you want and need. New apartment buildings and residential properties come with pools, gyms, spas, clubs, and so many more facilities. You should avoid getting swayed by all these amenities and pick only those that you need and will use. For example, if you have kids, you might want to buy a house with a play area. If you own a car, you will need a parking space. You should pick the extras carefully because they add to the total cost. 4. Choose a Builder with a Good Name Buying a home is a big decision, so look into the builder’s background. Check their past projects to see if they were all finished on time. You can also talk to the builder’s past customers to find out about the quality of the work and whether or not what was promised was delivered. Avoid fly-by-night companies that make big promises but do not have a reliable track record. When in doubt, ready-to-move-in units are the best way to avoid problems with builders. 5. Get a Home Loan Since buying a house is a big expense, you should consider getting a home loan. You can talk to your bank, but it is best to compare the home loan rates and features offered by several lenders. One of the most crucial steps in buying a house is getting your home loan approved. Home loans also come with some tax benefits. As a best practice, keep the length of your home loan as short as possible. Long-term loans have very high interests that may add up over time. For example, a 25-year home loan has a total interest payment of 160%, while a 10-year home loan only has a total interest payment of 55%. [B-02] Conclusion For someone who has never bought a house before, the process can be scary. But if you follow these tips, you can plan well and make buying your first home a memorable experience.

08-11-2023

Home Loan

Features & Benefits Of Piramal Finance Home Loan

You all might have a dream to own a house. However, it is very costly to construct your ideal home from scratch. A home loan could be a great way to fund your purchase. Let us find out how. [B-01] What Is A Home Loan? A home loan is borrowed from a financial institution to buy or build a house. Not everyone indeed has the cash to buy or construct a home at once, here is where banks and other lenders come to the rescue. They fill in the gap by funding in exchange for regular repayments, with interest. The most common sort of home loan offered by financial institutions is used only for residential purposes (such as buying a house or apartment, constructing a dwelling, etc.). Additional benefits that are available with this loan include longer loan terms, more adaptable repayment schedules, tax rebates, and so on. Advantages Of Obtaining A Home Loan Here are some benefits of obtaining a home loan: Tax benefits The ability to deduct interest and principal payments from your taxable income is the biggest perk of getting a house loan. Stamp duty payments up to Rs.1.5 lakh u/s 80C. Interest repayments up to Rs.2 lakh u/s 24B. Interest repayments up to Rs.2 lakh in specific situations u/s 80EE and 80EEA, and principal repayments up to Rs.1.5 lakh u/s 80C are all tax-deductible. Lower rate of interest The interest rate on a house loan is cheaper compared to other loan options. If you’re having trouble making ends meet, refinancing your house loan is a cheaper option than taking a personal loan. Property research due diligence In the case of a home purchase funded by a financial institution, the latter will perform extensive due diligence on the property from a legal point of view, including verifying the authenticity of any supporting papers. The chances of getting scammed will be minimal in this case. Thanks to the bank’s attentiveness on the matter. Assuming the bank is satisfied with the property, you and your home, both are protected. Long repayment tenure Mortgage loan repayment periods are quite lengthy, generally lasting between 25 and 30 years. This is because taking out a mortgage requires a significant amount of debt. Repaying the principal and interest over a longer period will lower the EMIs. No penalty for advance payment. With a floating rate of interest, you can make pre-payments anytime you have a large sum of money available, without incurring any penalties. This will allow you to pay off your house loan much before the end of the agreed-upon term. Balance transfer facility The home loan interest rate, fees, and satisfaction with customer service are just a few of the factors that might prompt a homeowner to switch mortgage lenders. Home Loan Interest Rates As of March 2021, the average interest rate on a house loan in India is 11%. Lender to lender, the repo rate set by the Reserve Bank of India (RBI), inflation, economic activity, and other variables also influence interest rates. When we talk about house loans, certain banks provide discounts to women, bank employees, and senior citizens. In addition, the home loan interest rate might be either fixed or variable. An adjustable-rate mortgage’s interest rate remains constant irrespective of market swings, whereas a floating-rate mortgage’s rate might change often. The borrower may or may not reap any benefits from this. Features Of Piramal Home Loan The following are some of Piramal Home Loans’ features: Low CIBIL Score To qualify for a loan from a bank or other financial institution, your CIBIL score needs to be 750 or above. However, if you meet the other requirements for a house loan with Piramal Finance, you may be eligible for a loan even with a CIBIL score as low as 650. Cash Salaried If you are salaried and want to apply for a mortgage, your pay slips will serve as proof of income. Employees who are paid in cash, such as housekeepers, drivers, etc., can apply to Piramal Housing without submitting a pay slip. This feature proves vital for people working in informal economic sectors. Self-employed Business owners, sole proprietors, and others in similar professions often have their house loan applications denied because their monthly income fluctuates often. These applications are reviewed and approved by Piramal, who works with entrepreneurs and freelancers to create unique repayment plans. Proprietorship firm employees Companies that are sole proprietorships are not required to register under the Companies Act or the Establishment Act. There are unincorporated businesses that offer paid services to clients both online and offline. Workers of proprietorship firms are also more likely than those of corporations to get their pay in cash, and not necessarily on the same day of the month. Moreover, to lend the customers, Piramal also loans to the staff of these companies. Extended Tenure Borrowers might get up to 30 years to pay back their loan from Piramal Finance. Repaying a debt over a longer period means the borrower may spread out the cost of repayment. This means lower EMIs. A convenient method of recording information The application process at Piramal Finance is easy for potential borrowers. Borrowers can apply for a house loan from Piramal Finance even if they don’t have pay slips proving their employment with the company for at least a year. Proven Methods When you apply for a loan with Piramal Finance. You will have access to a personal finance expert who can answer any questions you may have. They will also help anyone looking for a home loan, and find the best options for their unique needs. [B-02] The Bottom Line To learn more about home loans and the application process, read similar blogs on the Piramal Finance website.

08-11-2023

Home Loan

All You Need To Know About Home Loan For Salaried Persons

Are you a salaried person looking for an affordable and convenient way to buy a home? Home loans and housing loans are great options for salaried individuals, as they provide easy access to funds to purchase a home. In this blog post, we’ll cover everything you need to know about a home loan for salaried persons, from eligibility requirements to loan repayment options. Read on to learn more. [B-01] Home Loan- An Overview When you’re looking to buy a home, the process can be overwhelming. However, a home loan is one of the most common ways people finance their dream home, and understanding the basics of housing loans can help make the process easier. Banks or other financial institutions usually provide a home loan. In most cases, they have secured loans, meaning they are backed by collateral—usually your home itself. The amount you can borrow depends on various factors, including your credit score, income level, and property value. The terms and conditions of a home loan vary depending on the lender. Common home loan terms are 15, 20, or 30 years. You will also need to make monthly payments to your lender that include both the principal (the amount you borrowed) and the interest. When you apply for a home loan, you’ll likely need to provide some documents like bank statements and tax returns to prove your income and creditworthiness. Your lender may also require you to purchase private mortgage insurance if you don’t have a large enough down payment. The Eligibility Criteria It’s important to understand what requirements you must meet in order to apply for housing loans in India. The person must be between 23-62 years of age. The applicant should be a salaried employee or a self-employed individual with a regular source of income. Their income must be more than Rs. 25,000 a month, depending on the city of residence. Their credit score must be above 750 to apply for housing loans. The Documents Required Before applying for a home loan, it is important to know what documents are required to get the loan approved by the lender. The lender will use these documents to assess your creditworthiness and determine whether or not you qualify for the home loan. Proof of Identity: This includes documents such as a passport, driving license, PAN card, or Aadhaar card. Proof of Residence: This includes documents such as an electricity bill, landline bill, water bill, or rental agreement. Income Proof: This includes salary slips, bank statements, and income tax returns. Bank Statements: You will need to provide copies of your bank statements for the last three months. Property-Related Documents: You will need to provide documents such as the sale deed, title deed, mutation certificate, and other relevant documents related to the property. It is important to remember that each lender may have different requirements regarding the documentation they require. Be sure to check with your lender beforehand to ensure you have all the necessary documents ready when applying for your home loan. The Application Process for Housing Loans For salaried persons in India, the process is relatively straightforward and easy to understand. The first step to obtaining a home loan is to gather all of your financial documents and prepare them for submission. These documents include your income tax returns (ITR) for the last two years, salary slips, and any other documents related to your finances that you may need to provide. Once you have all of these documents together, you will need to fill out an application form provided by the lender. Once the application form is completed and submitted, the lender will assess your eligibility based on their criteria. After they approve your application, they will issue you a sanction letter outlining the terms and conditions of the home loan. The lender will verify all the documents and check for any discrepancies before disbursing the home loan amount. Once the lender provides the loan amount, you will need to start making timely repayments according to the loan repayment schedule provided by the lender. It’s important to note that late payments may result in additional charges or even foreclosure of housing loans, so be sure to make payments on time every month. The Benefits Of Housing Loans If you’re a salaried individual, taking out a home loan can be one of the most rewarding investments you make. While it’s true that the responsibility for managing and paying off the loan comes with it, the potential benefits far outweigh the risks. Here are some of the key advantages of opting for housing loans if you’re a salaried individual: Affordable interest rates- The interest rate on your home loan is determined by factors such as your personal credit score, income bracket, and type of employment. As such, whether you opt for a fixed-rate or an adjustable-rate mortgage will depend on which kind of rate suits your needs best. Quick loan disbursal- Generally, it takes less than 48 hours to complete all paperwork and get the final approval from verified lenders. In comparison, when applying for other loans, you would need at least a month to obtain formalities like background checks and character verification before getting into negotiations about your eligibility for funds. Lower risk– You also have lower risk when investing in a home because many banks offer insurance against unexpected events like death or disability, where they would pay back part or all of the outstanding balance on your mortgage, should anything happen to you. Tax benefits- Taking out a home loan also allows you to avail several tax benefits. The Indian government has various tax deduction schemes, such as Section 80C of the Income Tax Act, which lets you deduct up to Rs. 1.5 lakh on the principal component of your home loan. [B-02] Conclusion Understanding how housing loans work is essential for making an informed decision when it comes to financing your dream home. It’s important to know what kind of loan you’re getting into, how much you can afford, and what kind of terms you can expect. With the right knowledge, you can find the best loan for your financial situation. For more information, head over to Piramal Finance.

08-11-2023

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Top 5 Investment Options for Retired People in India

Retirement is called the “golden age” because it is considered the beginning of a new life. Once you’ve done all your hard work, you are ready to reap the benefits. The choice is to use the hard-earned money you’ve saved over the years as you see fit. One thing retired people worry most about is their dried-up income source. What will happen once your savings are gone? It will not. Here we have brought to you some of the best investment options you can use to make a steady income after you retire. The Indian government has introduced many retirement investment options. Now seniors don’t have to keep looking for ways to make money or worry about inflation, living longer, or the rising cost of health care. These investment options give senior citizens several benefits and options for investing. With them, you can keep your financial freedom as a retired senior citizen and live the life you always wished for. This blog discusses the top 5 retirement investment options that can guarantee you a steady stream of income after retirement. [B-01] Senior Citizen Fixed Deposits For many people in India, fixed deposits have long remained one of the most popular retirement investment options. Since the amount of interest paid out can be set monthly, quarterly, semi-annually, or annually, it is also a safe bet for the age of the country. The plan is for those who are 60 years of age or older. Eligibility Fixed Deposits for Senior Citizens are open to all citizens over 60, including NRIs. Some banks and financial institutions allow those over 55 to apply for this investment option if they have chosen to retire early voluntarily. What Can You Invest? Seniors can open a fixed deposit at their preferred bank for as little as Rs. 5,000 (if they do it online) or Rs. 10,000 (if using a bank’s branch physically). The amount for this retirement investment option varies from bank to bank, but it never exceeds Rs. 2 crore. The term can range from 180 days to 1, 3, or 5 years. National Pension Plan Anyone who works in the public or private sector can join this program. They might want to put money into a pension account to use its benefits when they retire. The plan lets you withdraw a set amount after you retire. The balance is paid out as a pension each month. Eligibility Before, only government workers could use the program, but now, any Indian citizen can. What Can You Invest? It depends entirely on your accumulated pension and what you withdraw. Senior Citizen Savings Scheme The Government of India introduced this as one of the best investment options for retired seniors in India in August 2004. It is an instrument of debt and bears no risk. Eligibility It is only for people over 60 years old. Also, only Indian citizens are eligible, not NRIs or Hindu Undivided Families. Those who opt for voluntary retirement or superannuation at the age of 55 or if they are retired defense personnel aged 50 and above can also apply. What Can You Invest? The minimum amount you can invest in this retirement investment option is Rs. 1,000, while the upper limit is capped at Rs. 15 lakh. You can invest individually or jointly. The payout is quarterly on the first date. Post Office Monthly Income Scheme The Post Office Monthly Income Scheme is yet another risk-free way for seniors to put their money to work with much less risk. This program is under the purview of the Ministry of Finance and ensures that senior citizens get a set interest rate every month. That’s why this program is well-liked by retired seniors. Eligibility This program differs from the others discussed in this post because it is not just for seniors. Anyone who is at least ten years old can choose this program. The application process is also easy to understand. You can take care of this at a post office near you. What Can You Invest? It is also pretty popular in rural areas. For the Post Office Monthly Income Scheme, you only need Rs 1,500 to open an account. The most you can invest is Rs. 4.5 lakh. Mutual Funds Although the stock market is not everyone’s cup of tea, mutual funds have increasingly gained popularity for their ease of use and lower risk. You can invest in mutual funds by yourself, or even better, use the services of a fund manager to manage this investment option better. You can invest a certain amount monthly or make a lump-sum one-time investment. Eligibility Anyone is eligible. There is no bar to age or income. What Can You Invest? Monthly investments in some Mutual Funds start as low as Rs. 100. Ask your fund manager about how much you can invest in mutual funds. [B-02] Conclusion Retirement is a time to relax, but it can also cause worry, especially if you lose a steady source of income. The retirement investment options described in this article can help older people enjoy this time without worrying about money. One of the best things about these investment options is that they give you a fixed and guaranteed return for as long as the program lasts. Senior citizens can now pursue all their goals after retirement without having to worry. Before you invest, you should look over the details of each plan. You can find out more about each of these plans online. Piramal Finance offers some of the best investment options for retired people. Visit our website to explore more investment options and financial ideas!

08-11-2023