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What is a NOC Letter: All you need to know about the importance of a NOC letter

Nearly everyone must have taken out a loan in their lifetime, whether we are talking about a house, personal, or car loan. The lifecycle of a loan consists of three parts: loan approval, loan repayment, and getting a NOC letter. This third part is often neglected. However, it’s one of the most important parts of the loan cycle. So what is a loan NOC letter, and why is it so important? We will cover everything you need to understand about this important document in this blog. [B-01] What is a NOC letter? NOC stands for “No Objection Certificate.” This legal document implies that the borrower has repaid the entire loan and all dues have been cleared. This no-dues certificate is issued by the lender and proves that your loan cycle is truly over. The NOC letter is very important for your credit image and legal safety. A NOC includes important details like your name, loan details, and details of loan closure. Most banking companies and NBFCs issue NOC letters to your address after you repay the loan. However, you need to work through the process and prioritise getting a NOC letter if one hasn’t been issued. How to get a NOC letter? In today’s digitised world, you don’t need to worry much. Banking institutes and NBFCs usually use systems that automatically generate NOC letters on completion of the loan tenure. However, there are certain procedures you need to follow to get a loan NOC letter. Send a letter or email your lender. Ask them to send your original documents, invoice copies, and a NOC letter. The closure format varies from lender to lender. So check with your lender, banking institute, and financial institute before requesting a loan NOC letter. Prepare a formal letter draft, include your loan details, and attach proof of loan payment. This process takes a few days. Keep in touch with the lender and get it issued ASAP. Submit the NOC copy to the registrar of properties when you take a home loan on the registered property. This step is important to remove the lien from the property. If not, the lender will continue to have ownership rights even after repaying the loan. If you have taken out a car loan, you will receive RTO Form 35 and a NOC. Submit copies of these documents to your insurance company and regional transport office. A NOC letter is required for a home, personal, car, or business loan. It is also required in cases of availing loan against property and shares. Why is the NOC letter so important? The NOC letter regulates your credit score. Submit NOC letters to credit bureaus to get a healthy credit score. When you have repaid all the EMIs on time, your CIBIL score needs to reflect that. Getting a NOC letter will improve your credit score, and hence, you will be seen as a credible person. We all know the benefits of a healthy credit score. If the NOC letter for previous loans isn’t taken, it will affect your future loan availing capability. If your credit report doesn’t reflect loan closure, submit a copy of the NOC to the bureau and get the credit report updated. A NOC certificate ensures legal safety. Without a loan NOC letter, there is no proof that the loan has been repaid. A NOC certificate indicates that the loan was successfully closed. It is a legal document that ensures that particular debts have been paid in full. It’s your safety net to avoid any legal discrepancies in the future. A NOC certificate will make sure that no financial company sues you because they gave you bad information. A NOC certificate is proof of repayment. A NOC letter is useful not only for availing further loans but also for purposes like immigration and employment. This no-dues certificate is much needed in your personal and professional life. A loan NOC letter is legal proof. No one could falsely claim outstanding dues when you have a NOC letter. A NOC letter guarantees peace of mind. Imagine waking up one day and getting a notice for pending dues. A NOC letter saves you from the mental trauma and harassment that may arise if the lender decides to sue you. A NOC letter will ensure mental safety and security amidst stressful times. Advantages of having a NOC letter A NOC letter prevents discrepancies and misunderstandings that may arise regarding loan repayment. It safeguards you from false accusations of pending debts in the future. It avoids confusion between the lender and borrower in terms of pending dues. The transfer of ownership takes place with the help of a NOC letter. NOC letter increases your credibility in the market and your chances of availing of high-value loans without any hassles. [B-02] How to Recover a Missing NOC Letter The NOC letter is the most important document. You cannot lose it. However, if the NOC letter goes missing by any chance, immediately file an FIR. Get in touch with the lender and ask them to generate a duplicate NOC. You will have to submit a copy of the FIR and loan documents to get the process started. Getting a duplicate NOC might take a few weeks, so stay patient. Once you get a copy of the NOC, make sure it is well written and says “no objection.” Conclusively, the NOC letter is important in a world run by credit. Don’t procrastinate if you don’t have the NOC for previously paid loans. Get in touch with the lenders and accelerate the process. The process is quite simple and requires basic documents. If you have recently repaid a loan, check the progress of the NOC certificate. Get financially educated with Piramal Finance and avail easy personal loans without any hassles and with assured security at Piramal Finance.

08-11-2023

Tax

What is Tax Liability?

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

08-11-2023

Education

Things You Need to Know About PAN Card Fraud

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

08-11-2023

Gold Loan

Things You Should Consider Before Applying for a Gold Loan

Gold has been regarded as a good option to invest money in for many decades. In India, many people prefer gold over any other asset, as it is easy to sell in times of need, and its value grows over time. In times of need, people used to sell their gold to raise funds. But in the last few years, getting money for your gold has become very easy. On top of that, there is no need to sell your gold as you can take a gold loan instead. Many banks and NBFCs now provide their customers with the best gold loan offers. If you have gold in the form of coins, jewelry, or bullion, you can apply for a gold loan and get the money in a few minutes. Like any other loan, you must be careful while taking a gold loan; if you cannot repay the EMIs on time, the lender can forfeit it. Read on to learn more about getting a gold loan and what points you must consider before you apply. [B-01] What is a Gold Loan? A gold loan is a secured loan wherein the lender will offer you a certain percentage of the value of the gold in the form of a gold loan. The remaining percentage will be a security for the lender to recover money if you cannot repay the loan. The gold will be put in a sealed bag and will remain with the lender till you repay the loan. As it is a secured loan, the interest rate on a gold loan is lower than on a personal loan. The loan tenure, in this case, can go up to 60 months. When it comes to repaying the loan, there are two options. You can opt to pay the EMIs as per the loan terms, or you can only pay the interest during the loan tenure and then make a lump sum payment at the end of the term. Most lenders do not levy any foreclosure charges if you close the gold loan before the term is complete. The loan process only takes a few minutes to complete. The lender will call a valuer to assess the value of the gold and then offer you a certain amount as a loan. If you agree, you must sign the loan agreement and provide your bank account information. The amount will be sent to your account in a few minutes. You can use this gold loan for any needs that you may have. Things to Consider Before Applying for a Gold Loan To make the most of this facility, you must select the best gold loan provider. This will help ensure you get the best deal on your gold loan without affecting your finances. Here are some key aspects you must take care of when you decide to apply for a gold loan: The Right Amount: You must note that the amount you apply for as a gold loan should be enough to cover your needs. If you apply for a higher loan amount, you will need to give that much gold as a security. Also, your EMIs will increase along with the loan amount. This can put some stress on your finances. Most lenders offer between 70% and 80% of the gold’s value as a loan. So, make sure you apply for the right amount as a gold loan; otherwise, it can be an issue that can also put your gold at risk. Best Gold Loan Provider: Some banks and NBFCs claim to offer the best gold loan. But don’t take their word for it. Not every loan offer is good for you, and you must opt for a loan that can meet all your needs. Hence, it would be best to research online to check the various loan offers available. From these offers, you can compare the terms and rules of the lenders and then select the best gold loan for your needs. Interest Rate: A gold loan is a secured loan, so the interest rate is lower than that on personal loans. However, it is still a cost you will have to bear for the entire term of the loan. So, make sure you select a lender who offers the best gold loan interest rate. This will help lower your EMIs and reduce the loan’s overall cost. Charges: Many lenders claim to offer ‘nil charges’ on gold loans, but that might not be the case. You must check the loan terms and rules carefully. Check for all the charges the lender will charge in processing fees. Also, it would be best if you asked for no charges for prepaying the loan. This ensures that if you have extra funds, you can repay the gold loan before the end of the term and save money on interest. Customer Support: Good customer support is the hallmark of the best personal loan. You must ensure that the chosen lender is known for its customer-friendly approach. The lender must also offer the option to make payments online and allow you to access your account details online. This will save you the hassle of visiting the lender’s office whenever you need information on your gold loan. [B-02] Conclusion A gold loan is a good option when you urgently need money and do not want to pay a very high-interest rate. However, it is still a loan, and you must therefore opt for the best gold loan to have a hassle-free time. If you want to know more about gold loans or other loans that you can avail of, check out the latest blogs and articles from Piramal Finance.

08-11-2023

Gold Loan

What role do gold loans play in India’s economy?

The gold loan has been popularised in India for decades now. Yet most of them were managed and controlled by the unorganised sector, which included the local moneylenders and pawnbrokers. There were no policies or regulations to control their activities. It is only recently that the banking and finance sectors have been informed about the impact that gold loans have on the Indian economy. Compared to the other retail loan products, gold loans are gaining faster traction, with the rising gold prices acting as a boon for the market. Borrowers can get loans faster as they can provide their gold ornaments as collateral. Lenders find it safer to lend money since the collateral is adequate to cover their risk. Many banks as well as NBFCs (non-banking financial companies) have started offering gold loan at low-interest rates. The interest rate is as low as 7% per annum for gold loans in India because of the collateral provided. The tenure for these gold loans ranges from three months to four years, and you can avail of up to Rs. 1.5 crore as a loan, depending upon the value of the gold you keep as collateral. [B-01] Benefits of Taking a Gold Loan Here are a few things you need to understand about gold loans: Gold loans can be used for any purpose. You can pledge your gold ornaments and get a gold loan whenever you face any kind of financial emergency. You can use the money for medical emergencies, educational purposes, or even to go on a holiday. These loans are highly secure. If you pledge your gold with a reputed bank or financial institution, you can rest assured that your gold is safe with them. Whenever you repay your loan, you will get your gold ornaments back in the same condition they were in when you deposited them. There are numerous tenure options. From 3 months to 48 months, you can choose any tenure option to repay your gold loan. Low Fees. Like other loans, gold loans are also associated with certain fees, such as processing fees, valuation fees, and late payment charges. However, these amount to only about 2% of your loan amount. Multiple Repayment Options Most gold loan lenders offer various options for borrowers to repay their gold loans. These include: Regular EMI repayment Paying the interest amount upfront and repaying the principal loan amount at the end of the tenure Paying interest amount in monthly instalments and repaying the principal loan amount at the end of the tenure If you repay your interest amount regularly, you might even get a 1 to 2% rebate on the original rate of interest. Gold loans are often preferred by borrowers because of their quick disbursements, minimal paperwork, and flexible schemes. It is a hassle-free and easily accessible option for borrowers who wish to borrow small loans. However, there is something called loan-to-value (LTV) that you need to be aware of while opting for a gold loan. What is loan-to-value (LTV)? Loan-to-value, or LTV, is the ratio of the gold loan amount to the value of the gold that is being pledged. The RBI (Reserve Bank of India) has capped this at 75%. Nevertheless, this might change depending on the market rate of gold. If there is an increase in the gold rate, you can get more gold for the gold that you pledge. On the other hand, if the gold rate falls, you may have to pledge additional gold for the same amount of money. Banks and financial institutions generally derive the value of gold by analysing the fluctuations in the gold rate over the past 30 days. They then evaluate the LTV by checking the purity of the gold that is being pledged. A professional loan evaluator is usually hired for this purpose. The lender might ask the borrower to pay up the marginal difference or pledge more gold when there is a fall in the gold price. Not paying this up might make you a defaulter, thereby impacting your credit score. In case you fail to repay the loan even after 90 days after the end of your term, the lender might liquidate the pledged gold by auctioning it. However, it is highly unlikely for lenders to follow this route if the tenure of the loan is short. Impact of gold prices on the Indian economy Indians love gold. They buy gold all the time, be it for investing, for weddings or other festive occasions, or to offer as a gift to their loved ones. They consider gold a symbol of prosperity and good fortune. Buying gold is a cultural norm for Indians. The amount of gold that Indians hold is more than what you can find in any other country in the world. 2.5 trillion Indian rupees’ worth of gold was imported by India in the fiscal year 2021. This is estimated to reach 3.4 trillion Indian rupees in the Fiscal year 2022. As a non-productive asset, gold has a huge impact on the Indian economy. Most of the gold that is purchased in India either gets transformed into jewellery or is stashed away in safe boxes and lockers. Most people hold on to their gold to get higher returns on their investments or just to add to their wealth. [B-02] In conclusion With the gold rate expected to rise in the forthcoming future, there are going to be more takers for gold loans. Make sure you make the most of your investment but do evaluate your financial situation and your repayment ability before borrowing your gold loan. Check out the Piramal Finance website for other options if you don’t want to pledge your gold.

08-11-2023

Other

What is a Trading Account, Its Charges and Eligibility Criteria

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

08-11-2023

Gold Loan

What Is The Maximum Tenure For Gold Loan?

Gold loans are a great way to meet your immediate cash demands. Suppose you have gold items you want to use during a financial crisis or fulfil other monetary requirements. In that case, you can easily apply for a gold loan without any problem because you can obtain it in a few minutes to 48 hours. The duration of gold loans varies according to the institution. The tenure of repayment for gold loans starts at a minimum of seven days and a maximum of five years. [B-01] Benefits of gold loans Hassle-free documentation: Financial institutions use a relatively easy KYC-based documentation process. The borrower must supply all relevant documentation, such as evidence of identity and address. Income certificates or financial statements are not required in the gold loan application process, as in other loan applications. Reduced Interest Rates: Gold loans are a secured type of borrowing. Hence, lenders charge a lower interest rate when compared to other unsecured advances. No Processing Fee: Banks and publicly traded financial organisations do not charge processing fees because gold loans are granted instantly. No effect of CIBIL ratings: Unlike most loans, gold loans are not based on your financial situation or credit score. The borrower’s repayment limit and previous repayment record determine the advance amount for other unsecured loans. In the event of a gold loan, however, the advance amount is determined by the value of the gold. Safe Gold Storage: The lender is responsible for safely storing the gold jewellery. The gold is secure in their vault, and the borrower does not have to worry about it. Multiple uses: Medical emergency, schooling, business expansion, wedding plans, or the initial instalment for purchasing a vehicle or a property can all be financed using gold loans. Modes of Gold Repayment EMIs, or Equated Monthly Installments, are the most frequent method of repaying a gold loan. This is best if you have a steady income. Use a gold loan EMI calculator to calculate the amount paid in EMIs. People who select EMIs to repay their gold loans enjoy a consistent monthly income stream. The lender would charge monthly interest on the principal in this arrangement. Still, the principal plus interest would be due after the loan term. To keep track of your expenses, you can use a gold loan repayment calculator to determine how much you would have to pay. With a small exception, the monthly payment procedure of a gold loan is identical to that of an EMI. This technique requires simple monthly payments of the interest accrued on the principal amount. The principal is paid only after the gold loan term. The gold loan repayment calculator can help you determine how much interest you’ll pay each month. This repayment plan is also appropriate for low-income borrowers or those who do not have a monthly cash intake. Bullet repayment is appropriate for short-term gold loans of 6 months to 1 year. However, by the time the loan term is up, you will have paid much more interest with the bullet repayment method. Although expensive, this strategy may be suitable for people who do not have a steady source of income and cannot afford monthly payments. Foreclosure refers to repaying the entire loan amount before the loan term expires. Pre-closure money can also be used to settle gold loans. Making partial principal and interest payments is another traditional method of repaying gold loans. You can save money on your loan by making larger payments at the beginning. Repayment Tenure for Gold Loans When compared to most other loans, gold loans have shorter repayment terms. Typically, the maximum payback duration for a gold loan is 24 months for long-term loans serviced in EMIs and six months for short-term loans repaid in a lump sum. You can repay the loan in 24 instalments if you choose monthly payments. This means that the maximum gold loan term is 24 months. Even if you prefer shorter loan payback terms, such as 12 months, you can repay the loan before the term finishes. Banks do not charge prepayment penalties if you pay a minimum of three instalments and close the loan before the end of the term. If you choose a short gold loan term with a one-time payment, you will have a maximum repayment period of 6 months at a set interest rate. When your loan term ends in six months, you can repay the entire amount in one lump sum. Factors influencing gold loan applications Identity evidence, address proof, and recent passport-sized pictures are the most common types of documentation requested for a gold loan application. While this list remains consistent, many institutions have supplemental document lists for increased security. Because gold loans are evaluated based on the value of gold jewellery, financial institutions have a sanctioning limit. They can only make loans within that range. Greater limits are only permitted in exceptional circumstances where management agrees with the events and the borrower has a favourable repayment record. Financial institutions can grant a credit limit of up to 75% of the market value of the gold mortgaged in the case of a gold loan. The Reserve Bank of India caps the loan-to-value ratio in this scenario. When a borrower has fully repaid their loan, their gold loan eligibility requirement for reclaiming the same gold for future needs is positive. The most significant advantage of a gold loan is the flexibility to repay the principal and interest in numerous ways. They include a lump sum or equally distributed monthly gold loan payment alternatives, which are not accessible with other loan advances. Again, each NBFC has its loan gold loan payment options, and applicants must read the terms and circumstances before applying. [B-02] Conclusion Gold loans are great for emergencies, weddings, and personal emergencies since they are convenient and have a faster processing time. However, with fluctuating gold loans, any decline in the gold price may trigger the banks’ decision to sell the jewellery and repay the gold loan instead. However, the borrower might avoid this problem by repaying the bank the appropriate amount. To learn more about personal or gold loans, please visit https://www.piramalfinance.com/personal-loan.

08-11-2023

Gold Loan

Top 10 Reasons Why a Gold Loan Is Your Best Bet for Financial Needs

India is one of the world’s biggest buyers of gold. The valuable metal can be used to acquire a loan in a cash crunch. Getting a gold loan is one of the best and fastest ways to get cash when you need it most. Even though your credit score is low, if you have a lot of gold sitting in your locker, you may be able to get a gold loan. Gold loans are becoming more common each year, so it’s crucial to understand not only what they are but also how they work, how much interest they charge, and other specifics. [B-01] What is a gold loan? Gold loans, often known as “loans against gold,” are secured loans in exchange for gold decorations, like jewelry, owned by the borrower. Lenders will typically allow you to borrow a sum that is a certain percentage of the value of the gold. After the necessary monthly payments, you will be given your gold items back. Gold loans, in contrast to other secured loans like mortgages and auto loans, have no limitations on how the money can be used. Consequently, it is a wonderful solution to fulfill your unexpected money requirement, whether for a wedding, a family trip, or your child’s college. Furthermore, several private, and national banks and NBFCs provide gold loans with low interest rates. What makes a gold loan the best choice when you need money fast? Here are a few things that set the best gold loans against gold apart: Fast approval When talking about how easy it is to get the best gold loan, the first thing to point out is how quickly you can get approved. The main reason for this is that it is one of the few ways to get credit that requires the least amount of paperwork. After filling out the application online, borrowers can upload the documents they need to send. Fast disbursal Once the gold has been evaluated, the loan amount is given to the applicant within a few hours. On the other hand, it takes at least 24 hours to process and verify other financial products before the money can be sent out. Simple criteria for eligibility Compared to other types of loans, the requirements for getting a gold loan aren’t as strict. Here, people who want to borrow money can do so without having a high credit score or making more money each month than is required. But they have to make sure they are the right age and that their gold items are of the right quality. Taking out a gold loan instead of a payday loan is a good idea because you won’t have to provide proof of income. Unlike with some secured and unsecured alternatives, borrowers don’t have to show this paperwork to get the emergency money they need. Flexible repayments The best thing about gold loans is how flexible the payments are. You don’t have to pay monthly instalments, pay back the loan based on how much money you have during the term. You can choose to only pay interest each month and pay off the loan at the end of the term. You could also pay the whole amount at the end of the payment period. Extended repayment tenure Gold loans take longer to pay back. The repayment tenure can be as long as 3–4 years. This allows you to plan your payments after you’ve taken care of the emergency. Still, paying back the loan as soon as possible is the best way to save money on interest. Low rates of interest Gold loans are usually less risky for a financial institution to give out because they are secured. Because of this, lenders offer a lower interest rate on it than they would on some unsecured loans. Whether you need the money for an emergency or not, a low-interest rate is always good. It brings down the total amount you have to pay back, making handling your debt easier. Also, it doesn’t make a person’s finances harder. Low processing costs Most banks won’t charge you anything or only a small amount to process a gold loan. Getting a gold loan is the best way to meet your financial needs because it gives you the financial flexibility you need without hurting your personal finances. No limits on the end use When talking about whether or not a gold loan is a good idea in an emergency, the fact that it can be used for anything is its most significant selling point. This means that borrowers can use these funds for various financial needs. It could be for personal costs, medical emergencies, or work-related needs. The lender will not step in to help with this. Safekeeping of gold You put your unused asset to work when you get a gold loan. It is safe in the vaults of banks and other financial institutions. It is also insured when the asset is saved with the lending institution. This means that if it is lost or stolen, you will get the total market value of your gold back. Good interest rates The interest rates on gold loans are low. Gold is reliable collateral for anyone. In India, interest rates on gold loans are usually between 12 and 14% per year, which makes them an affordable way to borrow money. [B-02] Conclusion Applicants can get a lot out of gold loans. It lets you immediately get the credit you need and use the money you raise however you want. All of the good things about it are listed above. Piramal Finance offers gold loans with low-interest rates. If you want to take a gold loan with instant disbursal, visit their website!

08-11-2023

GST

All About GST on Laptops in India

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

08-11-2023