Popular article

Your one stop place for everything related to finance and lending

Know More

Top Biggest Upcoming IPO For The Year 2022

If you are beginning your investment journey, you might have missed out on the IPOs of Indian companies. These are very popular among investors as they give good returns within a year of their listing on the stock exchange. If you have missed out on these IPOs, you need not worry. In this article, you will find everything about the top 10 upcoming IPOs in India for 2022. These IPOs will offer you a great chance to create a portfolio with high returns. What is an IPO? IPO is the initial public offering of a company’s shares. This process is typically done when a company has become stable, which usually takes about 3-5 years. Many companies will hold their IPO for some time after they have been listed on the stock exchange. In India, a company can list its shares on one of the two public stock exchanges: the BSE, or Bombay Stock Exchange, based out of Mumbai and the NSE, or National Stock Exchange, based out of New Delhi. You can choose from a range of IPOs, based on what you want to achieve through your investment. Top 10 Upcoming IPOs in 2022 Following are the best upcoming IPOs of 2022 that you should consider investing in: 1. MobiKwik As per the latest IPO news, Mobikwik will list itself on the stock market in 2022, and the IPO will be for ₹15,000 mn. The company will list its IPO both on the BSE and NSE. Founded in 2009 by Bipin Preet Singh and Upasana Taku, Mobikwik is an Indian fintech company registered under the name One MobiKwik Systems Pvt Ltd. It provides phone app-based payment services. The Mobikwik Wallet is one of the most prevalent mobile wallets in India. 2. GoAir GoAir is an ultra-low-cost carrier, with a rising share in the Indian market. Its share has risen from 8.8% in the fiscal year 2018 to 10.8% in 2020. The airline currently has 56 aeroplanes, connecting 28 domestic and 9 international destinations. In its initial public offering, the airline plans to list up to ₹3,600 cr in equity. 3. Penna Cement One of India’s leading cement producers, Penna Cement operates out of four cement factories in Telangana, Andhra Pradesh, and Maharashtra. Its total production capacity is 10 mn tons a year. The company is projected to raise ₹1,550 cr through a public equity offering, of which ₹1,300 cr will be raised through a new equity share issue and ₹250 cr through an offer for sale. 4. Arohan Financial Services Arohan Financial Services works in India’s low-income, unexplored states, making it one of the leading NBFC-MFIs in the country and earning it a spot in the top upcoming IPOs in 2022. The company provides a range of credit and insurance products. Under credit, the company offers income-generating loans and other financial aid. It also provides life and health insurance products. Arohan Financial Services plans to raise between ₹1,750 cr and ₹1,800 cr. Through its IPO, ₹850 cr will be sold in fresh issues, and the rest will be sold in a secondary market. 5. Delhivery In the fiscal year 2021, Delhivery was one of India’s largest and fastest-growing fully integrated logistics service providers. The company provides a wide range of logistics services, including heavy goods delivery, express parcel delivery, partial truckload and truckload freight, warehousing, and supply chain solutions. According to the latest IPO news, it will sell an offering of new shares worth ₹5,000 cr while a simultaneous offer to sell (OFS) component worth ₹2,460 cr. 6. Fincare Small Finance Bank With a focus on unbanked and under-banked clients in rural and semi-urban areas, Fincare is a digital-first small finance bank. Their business model highlights financial inclusion and provides affordable financial products and services to people and firms. A ₹1,300 cr Fincare IPO will include a new issue of equity shares of ₹330 cr and an OFS of up to ₹1,000 cr. 7. Seven Island Shipping Incorporated in 2002, Seven Island Shipping trades petrochemical lubricants, crude oil, and other commodities. One of the top priorities of this company is to offer safe transportation while also being clean and efficient. As one of the top upcoming IPOs in 2022, the company plans to raise funds worth ₹600 cr, with a fresh issue of ₹400 cr and OFS worth ₹200 cr. 8. SREI Equipment Finance SREI Infrastructure Finance Ltd owns and operates this Kolkata-based company, SREI Equipment Finance. It provides loans to buy equipment for construction, irrigation, water supply, mining, IT infrastructure, healthcare, and farming. A total of ₹2,000 cr will be raised through its IPO, which consists of equity shares of ₹1,100 cr and OFS of ₹900 cr. 9. ESAF Small Finance Bank Among the small businesses in India, ESAF Small Finance Bank is the principal bank in terms of the number of clients, average earnings, interest rates, payments from deposits, loans to rural areas, and the number of loans offered. A new issue of ₹800 cr worth of shares will be made, which will include an OFS worth ₹200 cr. 10. Inspira Enterprise India Inspira Enterprise India works on digital transformation services in the cybersecurity industry. As one of India’s leading firms in this field, Inspira is known for providing only the best to its clients. The company’s IPO includes a public share sale of ₹300 cr, followed by an OFS for equity shares of ₹500 cr. [B-02] Conclusion The top upcoming IPOs in 2022 look very exciting for investors. These IPOs show that the Indian economy is thriving. With so many new companies going public, consumers can enjoy more options and lower prices. If you’re interested in investing or want to learn about some of these great companies, you should read more articles like this on Piramal Finance. While there, you should also take a look at their financial products and services to help you build your plan your finances better.
08-11-2023
Read More
Personal Loan

Everything You Need To Know About Vacation Loans In India

Whether a family or a solo trip, a vacation is necessary for everyone. Visiting and exploring new places and having new experiences have benefits and advantages. But more important than going on vacation is having enough money to finance that vacation. Funds are important to cover travel tickets, food, accommodations, and other miscellaneous expenses. It’s also important to keep a spare for emergencies and unforeseen events. Due to this, taking a vacation loan comes in handy. While planning a vacation in India, securing a vacation loan is always better. It can help you finance your travel with ease. Furthermore, it is easily repayable in installments. But what exactly is a vacation loan? Is it just like a general personal loan? Let’s find out. What is a vacation loan? A vacation loan is identical to a personal loan for travel. However, it is specifically taken to pay for travel-related expenses. It includes hotel fees, meal bills, flight tickets, rental car fees, emergencies, etc. A loan for travel can help you bear the cost of a getaway without causing major changes in your savings. It is one of the best ways to get a lump sum of money you can spend on anything related to a vacation. Importance of a vacation loan Taking a vacation loan is a smart decision while exploring new cities because: A vacation loan allows you and your friends or family to travel far and wide. A vacation loan has zero hassles, as you do not need to put up collateral or find someone who will act as your guarantor. A vacation loan has a relatively low interest rate, making it easy for you to have a fixed repayment plan. There are no restrictions on a vacation loan, as you won’t need to disclose details. After paying for the necessities, you can even buy a gift for loved ones with the remnants of the vacation loans. Vacation loans usually come with very easy and flexible payment options. For example, you can structure the loan to be paid back within 1–5 years. Guides for Securing a Vacation Loan in India There are certain things to consider before applying for a vacation loan. You should be aware of the following factors before taking a vacation loan; Decide your destination: Your destination choice determines a successful vacation. Whether you and your family or friends like to spend time in the mountains or on the beach makes the planning process of applying for a vacation loan much easier. Set a budget: It will be smart to allocate a budget to your vacation loan before planning it. Start by allocating a budget for expenses. Take accommodation, food, sightseeing, and shopping expenses into account. Once you know all these costs, make a list. Knowing how much money you need from a vacation loan can also help. Check the existing fund balance: Assess the funds you have in your savings. It can help you decide the amount you should get as a vacation loan. Fulfill the requirements: There are eligibility criteria to be followed when processing a vacation loan in India. The following are the criteria: You have to be between the ages of 21 and 60. You may need to have stable employment for at least a year. You will need the following documents at hand during the application for the loan: Photo identity proof Current photograph Proof of your address Document of income, which includes Form 16 or a duly filled income tax return Salary slips of at least a year from the date of application Your credit score is an indicator of your creditworthiness. The higher your credit score, the better your chances of getting a low-interest vacation loan. Make sure you only have a few personal loans running simultaneously. Steps for Applying for a Vacation Loan in India Here are the simple steps you should follow to apply for a vacation loan in India: First, check your budget and finalise how much money you need. Then, go to any reputed credit score checker and check your credit score. Finalize where you want to go and create a plan for the vacation. Go around and look for multiple vacation loan offers from banks. Pick the best offer and apply for the loan. Provide the necessary documentation. Accept the vacation loan and finance your trip. Guidelines Issued by the RBI Related to Vacation Loans: The Reserve Bank of India has issued guidelines to both borrowers and lenders. It ensures that the vacation loan process is beneficial and fair to both parties. Given below are salient points to follow when securing a vacation loan: All applications for a vacation loan must be complete and include all the necessary information. It should contain the necessary details about fees and payments. So that borrowers can compare rates and make an informed decision. Verifying the vacation loan application must be done within a reasonable time. If additional information is required, the lender must contact the borrowers immediately. If vacation loans for amounts less than Rs. 2 lakhs are rejected, the applicant must convey the reasons for the rejection in writing. They must ensure the timely disbursement of vacation loans and communicate any changes in terms or conditions to the borrower. If they need to recall, cancel, or request faster repayments, they should provide adequate notice to the borrower. Borrowers should not be discriminated against based on religion, caste, or sex. [B-02] Conclusion Getting a loan to enjoy your vacation has always been a lot of work. A vacation loan in India is the most optimal means to enjoy a holiday without worrying about funds. Gone are the days when you would have to spend months saving money for your dream vacation. A vacation loan from Piramal Finance can help you visit your dream destination. The company allows you to plan your dream holiday with multiple benefits. They offer services like flexible loan repayment tenures and minimal interest rates. For more information, you can visit their website now.
08-11-2023
Read More
Business Loan

MSME Loan - An Ideal Choice for Startup Businesses

The Government of India has launched many schemes in the form of loans and subsidies to help and promote individuals in their business ventures. One of them is the MSME loan scheme. Its mission is to finance and support medium-sized, small, and microbusinesses. Do you also want funds from the MSME loan for your startup? Well, this article will help you navigate through it in detail. In this article, we will discuss the MSME loan scheme, why it was introduced, its benefits, and how to get one for your new business. [B-01] What is the MSME loan scheme, and what is its primary objective? The MSME Ministry of India is an individual body. It has executed and implemented the MSME loan scheme for the betterment of emerging small businesses. This loan system provides unsecured loans to individual, small business units to help them meet their business-related expenses. This is its prime objective. Not only the government, but private financiers and private banks have also started giving MSME loans to individual, rising businesses. The main differences between government and private MSME loan schemes are the interest rate of the loan and the loan amount. This loan has self-tailoring features. This means you can get an MSME loan scheme as a short-term loan scheme, a medium-term loan scheme, or a long-term loan scheme. You can take it as a cash credit, letter of credit, working capital loan, etc. You can use this lump sum amount to buy raw materials, use them in transportation, or pay for any services. What are some of the exclusive benefits of the MSME loan scheme? Here are some of the exclusive benefits of getting an MSME loan: Low rate of interest: Small and microbusinesses are charged low interest rates by banks. This is to ensure that the minimum amount is spent on repaying the loan and the maximum amount goes into funding the business venture. The rate of interest for MSME loans in India is somewhere in the range of 10 percent to 25 percent per annum, with an exception of 1 to 1.5 percent by some lenders like FlexiLoans and ZipLoan. Accessibility: MSME loans in India are highly accessible and easy to apply for. The whole process is hassle-free, with serious exemptions. This makes it an ideal loan system with the fewest cons. Collateral-free: It is an unsecured loan system. There is no requirement for collateral, a security deposit, or a guarantor. If you don’t have any of those, you don’t need to worry about your loan getting sanctioned. This decreases the burden on small and microbusinesses. It helps them see beyond this. High flexibility: MSME loan schemes are also a short-term affair. You require them only to cover your short-term requirements. An MSME loan isn’t a long-term commitment. This enables you to easily focus on developing your business. The long tenure of repayment: The tenure of repayment is not fixed for every bank, but it can often be started at 3 years and stretched up to 15 years. This seems like a reasonable amount of time. You can repay your loan within this period in the form of instalments. High loan amount: If you get your MSME loan sanctioned, your loan amount can go up to Rs 50 lakh. You can use this in your business venture. You can use it to buy new types of machinery, and raw materials, expand your manufacturing, hire more workers, and pay for other services. What is the eligibility to get an MSME loan in the first place? Here are some of the eligibility requirements to help you get an MSME loan: Type of business: It is the type of business that decides whether you are eligible for MSME loan schemes or not. The types of businesses that are eligible for MSME loans are: Manufacturing sector Service sector Any form of non-farming activity Business experience: In your current business, for which you are applying for the MSME loan, you must have a minimum of one to three years of business experience. This is due to the fact that you must demonstrate to the banks that you have extensive experience in the business venture in question. Business turnover: A business turnover of about 12 lakh rupees per year is the benchmark for an MSME loan. However, it is again very subjective because different banks have different criteria. Credit score: It is a common analogy that a good credit score will increase your chances of settling on a better deal on any type of loan. This stands to be true here also. If your credit score is 750 or more, that is always a plus. This increases your chance of getting a larger loan at a lower rate of interest. Clean loan history: If you have been regular at paying your previous debts, then you are always a way ahead. Banks look for candidates who have a clean track record and who pay their instalments regularly. [B-02] Conclusion: The interest rates from the top banks for MSME loan schemes range between 8.5% to 15% per annum. Even some of the popular banks go lower than that with increased tenure of repayment. You should use calculators in this case, where you can spin different loan amounts and interest rates to see what suits you best. You should focus on improving your credit score, improving your business venture, and increasing your business experience to make a better pitch and get a decent loan. If you prefer consuming articles and blogs on these topics, you can have a look at the official website of Piramal Finance. They have some amazing content on loans, investments, financial consulting, SIPs, etc.
08-11-2023
Read More
Other

All You Need To Know About The Benefits Of Working Capital Finance

Many business owners believe that financing from banks and other lenders will always be the best option to fund business growth, but that is not always the case. Working capital finance can help your company get the money it needs to meet immediate cash flow challenges. This also allows you to maintain your credit rating and keep control of your assets and debt repayment strategies. Learn more about working capital finance. Determine whether it is the right fit for you. Read this article to learn about working capital finance. [B-01] Defining Working Capital Finance Working capital is the money a company has available to cover its expenses between periods of sales. It can be used for day-to-day operations, long-term investments, or additional working capital loans. Working capital loan interest rate is one of the most important factors in determining how much you will pay in interest on your debt. A low working capital loan interest rate will result in a lower monthly payment, while a high one will lead to higher monthly payments and potentially a higher total cost of borrowing. The primary factor that affects working capital loan interest rates is the length of time between when the funds are borrowed and when they are repaid. The longer it takes for repayment, the higher the rate. Types Of Working Capital Working capital is the amount of money you have available at a given time. There are four types of working capital: cash in hand, accounts receivable, inventory, and current assets. Cash in hand: Cash in hand is the most liquid form of working capital finance because it can be put into use immediately. Accounts receivable: Accounts receivable represent how much customers owe a company for products or services that have been delivered but not yet paid for. Inventory: Inventory stands for products a company has on hand that are ready to be sold to its customers. Fixed assets: The final type of working capital finance is fixed assets, which refer to items like property and equipment that the company owns and may utilise over time. How Does Working Capital Work? A working capital loan is a type of business loan where the finance company allows you to borrow up to 75% of what your inventory, receivables, and other assets are worth. Working capital finance loans have interest rates that vary, depending on the financial strength of your company and what collateral you have for the loan. They can be anywhere from 2% all the way up to 7%. Borrowers are required to repay the amount borrowed plus interest within 90 days. Otherwise, they may face liquidation in order to pay back the debt. As long as the borrower has some sort of collateral to offer (real estate, vehicle, etc.), they will receive a lower interest rate than someone who doesn’t. How To Calculate Working Capital The working capital finance is the total value of all cash needed plus all accounts payable divided by 365 days in a year. Working capital formula: Current assets / Current liabilities = Working capital ratio A lower working capital loan interest rate could save you a lot of money over the life of your business, depending on how much working capital you need and how long it takes to get repaid. The Importance of Working Capital Management Working capital is the difference between a company’s current assets and liabilities. The level of working capital needed varies based on the type of business. Companies need to manage their working capital levels. This is because they have an impact on liquidity and solvency. This, in turn, can have a big effect on the company’s creditworthiness. Working capital finance is determined by several factors. They include credit history, industry type, and the size of the company. There are some reasons why your business might require additional working capital: To fund new projects and equipment: The working capital loan interest rate is usually lower than the company’s credit card debt, so it can be a good way to help fund projects and equipment. They will increase your revenue in the future. As a short-term solution for cash flow issues: Working capital loans are usually paid back in one year or less. So, they’re an ideal short-term solution for companies with cash flow issues. To repay higher-interest debts: If you have more expensive debts such as a car loan, student loans, or credit cards, working capital loans can often save you money in the long run by getting rid of these debts. For inventory financing: If your inventory exceeds what you need on hand to fulfil orders, then you may want to look into inventory financing options. This is because they provide additional liquidity for managing inventory levels during busy periods. [B-02] The Bottom Line Working capital is the fuel that powers a company. It is an amount of money that can be used for operations or investments. They help keep the company in operation. Working capital loan interest rates are typically set at a fixed rate of interest. This is done so that you know how much you will pay over time. Check out more finance-related articles at Piramal Finance.
08-11-2023
Read More
Personal Loan

Improve Your Cash Flow by Taking Equipment Loan

When purchasing new machinery, firms often take out what is known as an "equipment loan" to finance the purchase. Loans for equipment are distinct from other types of loans in that the money borrowed may be used on nothing except the purchase of the actual piece of machinery being financed. To ensure that the loan will be repaid, the actual piece of equipment will be used as collateral. This will likely be useful to many company owners who cannot use other security measures. The value of the equipment loan that will be funded throughout the loan will be given greater weight than the borrower’s credit history. [B-01] Equipment Loan will Make Your Cash Flow. Because the timing of spending can greatly impact cash flow, large upfront purchases are a common cause of cash flow issues. However, substantial investments may be necessary if your business needs new or updated machinery to meet rising demand, satisfy expanding customer needs, and keep the money coming in. Thus, many small businesses are forced to make the tough decision of postponing necessary capital expenditures like equipment upgrades and purchases or facing a cash flow crisis. The quickest and most efficient solution to this problem is commercial equipment financing. Instead of making a lump sum payment for the equipment, you can make smaller monthly payments using equipment financing. Your company can acquire the necessary machinery in this way without incurring any serious monetary setbacks. In addition, you’ll have some wiggle room in your working capital, which is always helpful for dealing with the unexpected. Leasing Equipment The Lessor, the legal owner of the equipment loan, grants the lessee, the legal user of the equipment, the use of the asset for a certain period in exchange for periodic payments. The corporation will have to make regular payments to a leasing company to cover the cost of renting the necessary equipment. By leasing, rather than purchasing updated equipment, businesses may benefit without negatively affecting their cash flow. After the terms of the equipment contract have expired, the borrower may do one of three things: The borrower may terminate the arrangement and retrieve the item at any time. Don’t just let the contract expire; extend it and start charging rent for the equipment again. To buy the machinery from the leasing company outright. Financing and leasing equipment has several benefits. You may reap several benefits from applying for an equipment loan as a business owner. That’s what they are: Maximize your cash on hand. An equipment loan may help improve a company’s operational capital when used in place of a large, up-front investment in equipment. Using working capital to purchase equipment may severely restrict a business’s ability to generate cash flow, jeopardizing many companies’ already precarious financial situation. To avoid using operating cash for costly equipment, company owners might instead choose equipment financing. Affordability of Capital Equipment and Tax Advantages of Financing Businesses may often repay equipment loans within the agreed-upon time frames. Most interest paid on equipment loans is tax deductible. Most leasing programs for commercial equipment provide tax breaks, allowing the business owner to write off the lease payment as an operating expense. So, the monthly lease payments may be deducted from the total amount paid during the life of the equipment financing on the annual tax return. Invest in High-Quality Equipment A further benefit of this financing is that it allows businesses to obtain the best and most effective equipment without worrying about how they will pay for it. Many business owners feel restricted when purchasing new equipment because it is expensive, and not all businesses can afford to invest much in it. Equipment finance enables business owners to acquire vital tools without draining their operating resources. Availability of Extra Credit Lines A firm that needs new machinery but doesn’t have the cash to purchase it might apply for business equipment loans and get a lump sum from a lender. However, this might create a cash flow issue if a large amount of the firm-term loan is used to finance the purchase of machinery and tools. You can get the machinery you need with an equipment loan, and if your firm runs into cash flow problems in the future, you can always refinance into a term loan. The procedure for Applying Is Straightforward. Time is money. Therefore, it makes sense for business equipment loans to have an expedited application procedure that may get you funded in as little as 24 hours. But when looking into equipment loans, it’s important to consider the magnitude of the upcoming purchase. Suppose a borrower has strong personal credit, a sign that their company has been profitable for some time and that the funded equipment will retain its worth. In that case, the application procedure may be expected to be extremely fast and uncomplicated. Get Creative with Equipment Loan for Your Small Business. Productivity, as well as the loyalty of customers and workers, may be increased with the right equipment. In addition to utilizing equipment financing to acquire the tools, you need to operate or for major increases to operational efficiency, consider using equipment loans for small pieces of technology that will hugely impact the enjoyment of your customers and employee. Invest in tablets to offer your customers greater agency. When paired with the right app, tablets may become valuable tools that increase customer engagement and facilitate better service. Customers may peruse menu options before heading to the register if your business offers made-to-order meals. Instead of handing out generic brochures, a beauty parlour owner should use tablets to showcase clientele’s style preferences and creations. A flexible POS system is a good idea to boost output. A point-of-sale (POS) system that gives attention to many factors and needs may help your small business earn more money. A smooth checkout process is good for business and will make your customers happy. [B-02] Conclusion Understanding equipment loans and implementing them in your business will improve your cash flow. It has several benefits for both small and large businesses. Consider consulting a reputed institution like Piramal Finance to learn more about how it works. They will provide expert advice on implementing an equipment loan in your business.
08-11-2023
Read More
Personal Loan

Know the Piramal Capital & Housing Finance Personal Loan Process

The number of financial institutions that offer personal loans has increased. The terms and conditions with which loans are given have become stricter as well. Due to growing scrutiny, banks have mandated personal loan eligibility requirements. Every applicant has to meet these before they become eligible for a loan. Eligibility is the first step, so knowing how to qualify for a loan can make or break your desire to take one out. In this article, you will read about the eligibility criteria and other details of the personal loan process. It also discusses the qualifying criteria for a five lakh personal loan. [B-01] What Is a Personal Loan? A personal loan is a loan sought by an individual from a financial institution for various purposes. These include paying old debt, clearing medical bills, or buying furniture. For example, an entrepreneur can take a personal loan to finance their expansion. A lender will sanction the fund after checking your loan eligibility. There are many types of personal loans. You may apply for a personal loan for your vehicle, home renovation, education, etc. Check Personal Loan Eligibility You can apply for a personal loan if you are a resident of India and above 18 years of age. You should also have a permanent source of income. These are the most basic personal loan eligibility requirements prescribed by every lender. The loan amount you are eligible to get is limited to Rs 5 lakhs. Other guidelines should be kept in mind while applying for a loan. Lenders have also mandated certain requirements in the personal loan process like identity and address proof. Documents Needed in the Personal Loan Process The documents sought by the lender will be submitted along with the application. These are the documents that will help meet the eligibility criteria set by lenders: Identity Proofs: The applicant’s name should be displayed on the document. You can submit any government-issued photo ID like an Aadhaar or driving license. Age Proof: If the documents are in the applicant’s name, the age proofs are applicable. One can use Aadhaar, Voter ID, Driving Licence, etc. Residential Proof: The address in the application shall not be rented or leased. Although, in some cases, the bank may allow you to use it. Employment Proof: You should prove that you have a stable and regular source of income. It is needed because you will use this income’s funds to repay the loan. Loan Purpose: You can apply for a loan for any purpose. Some lenders may ask you to submit a letter along with your application. The letter must outline the purpose for which you seek the loan and how you plan to repay it. Process of Applying for a Personal Loan A person who wants to take a loan must fill out an application form. It can be obtained from the bank or an NBFC where the loan is offered. On filling out the form, the applicant must mention all details. These include the loan amount, loan purpose, repayment period, and interest rate. The documents mentioned in the personal loan eligibility section must also be provided. If the loan is approved, the interest rate will be mentioned on the form. After submitting the form, the loan application is transferred to the loan department. The loan officer sees the application form and decides if the applicant should be given the loan. The loan officer has the authority to approve or reject the application. The decision will be based on personal loan eligibility. They would also decide the terms and conditions of the loan. When the loan is approved, a formal letter confirming the same is sent to the address in the application. Interest Rate for a Personal Loan in India The type of loan you are taking will determine the interest rate you will have to pay. There are two types of personal loans available in India. One is an unsecured loan, and the other is a secured loan. An unsecured loan has no collateral attached to it, while a secured loan has some asset (such as a car loan) as a security. While applying for a loan, you should decide which type of loan you want. An unsecured personal loan has an interest rate of above 10 per cent. A secured loan has an interest rate of 8 to 10 per cent. Repayment Schedule of Personal Loan The repayment schedule of a loan would depend on the amount you take and the repayment period you choose. The repayment term for a personal loan ranges from one to 15 years. Options to extend it beyond that exist in some loan programs and with certain lenders. The lender would decide the repayment schedule of a loan. It will be based on the borrower’s repayment ability. The repayment will be in the form of EMIs spread over a few years, as agreed between you and the lender. Most personal loans come with a minimum tenure of one year. Banks insist on having this minimum term as they want to make sure that they earn interest. Moreover, in some cases, you may even have to pay the penalty if you are paying before the stipulated time. Doing so causes a loss of interest to the bank. [B-02] Conclusion Now that you know what a personal loan is, the personal loan process, who is eligible for one, and how to apply for one, you are ready to find the best deal on a loan. Before applying for a loan, make sure you know the interest rate. Other terms and conditions of the loan must also be read. You must also check the eligibility details included in the personal loan process. That way, you can make a better decision about whether or not to take out a loan. A good way to do this is to find a lender with flexible loan programs. It includes Piramal Finance, known for excellent services and flexible loan terms.
08-11-2023
Read More
Know More

What are bank bonds and what are the benefits of it?

In the finance sector, bank bonds guarantee debts in which the borrower owes the lender a debt for which the borrower is obligated to repay the principal on maturity along with interest at a fixed interval, at agreed terms. These bonds are backed by the government of India and can be subscribed to at any time. Interest can be paid annually or semi-annually. Bonds are a great option for raising funds for a business without giving the investor the right of ownership in the company. Bonds work using a coupon rate, which is a fixed interest rate for the lender and is popularly known as a fixed-income security. For example, if an organization, XYZ Ltd., wishes to raise funds for its distant business requirements, it can take out a loan from the issue of bank bonds. Bonds are a tool for raising business funds for the borrower and a secured and fixed source of income for the lender. In bonds, maturity is when the principal or face value is paid back to the lender. Bonds can be invested in for a minimum of Rs 1,000 and increased in multiples of face value. There is no limit on the maximum investment. Eligibility for investment in Bank Bonds: There are no strict eligibility criteria for applying to bank bonds. Any person who is a resident of India can invest in these bonds. Individually, on a joint basis, or on behalf of a minor, a person can invest in these bank bonds without any restrictions. Features of Bank Bonds: Non-resident Indians cannot invest in these bonds. The maturity period for these bonds is 7 years. The minimum investment amount is Rs 1,000, and there is no capping on the maximum amount. Income earned from these bonds is taxable. These bonds are non-transferable. Premature redemption is available only to senior citizens. Benefits of bank bonds: Low minimum investment: The minimum investment in these bonds is Rs 1,000 and can be increased in multiples of face value. This is one of the reasons why investors prefer bank bonds. Due to this minimum investment, even a person from an economically weaker background with an account in a bank can invest in these bonds. Online/Offline Application: The government has made the application to bank bonds accessible to all through both online and offline mediums. Those who prefer everything online can apply online. Those who don’t have the medium for applying online or aren’t tech-savvy can fill out a form at the branch to apply. No limit on maximum investment: To ensure that investors reap the maximum benefits of these bonds, the government has kept no maximum limit for investment. Those planning to invest a big amount can apply for these bonds. Income or capital appreciation: Investors have a choice to obtain interest income or capital appreciation. Those who choose the interest income option receive interest twice a year, every six months. Those who prefer capital appreciation receive the cumulative amount for interest and principal on maturity. Modes of payment: To make it a feasible and hassle-free process for everyone, payments can be made through cash, DD, cheque, or online. This makes the payment process easy for investors. These are a few reasons why people prefer to invest in bank bonds. If you plan a safe investment with a fixed return, buy bonds like bank bonds. Types of Bonds: Fixed-rate bonds: These bonds provide fixed interest amounts until maturity. Investors earn fixed and guaranteed returns under all circumstances through these bonds. Floating-rate bonds: As the name suggests, the interest rate in these bonds is not fixed but keeps changing. It varies during the tenure, depending on the pre-set benchmarks. Zero-coupon bonds: If you invest in these bonds, you won’t get periodic coupons during their tenure. The investors purchase these bonds at a discounted price, but they receive the par value. Perpetual bonds are debt securities without maturity. In these bonds, investors don’t receive the principal amount but coupon payments until perpetuity. Inflation-linked bonds: These bonds are formed to minimize the impact of inflation on the face value and coupon payments. Convertible bonds: The investors who own convertible bonds can convert them to a fixed number of equity shares in the issuing company at a particular time. Callable bonds are high-coupon-paying securities in which the issuer can redeem them at a pre-agreed price and date. Puttable bonds: The bondholder can return the bond and ask for principal repayment at a pre-agreed date. Out of all these types of bonds, you must choose the one that fits your investment expectations, return expectations, liquidity options, and other factors. Things to consider before finalizing bank bond investment: Before investing in any scheme, you must always know the offerings. Here are a few points to consider before investing in bank bonds. Be sure about your expectations from the investment and compare them with the actual results the bonds can provide. Buy bonds you want to invest in depending on the risk or return in each. Always check the credibility/creditworthiness of the issuer. Before you buy bonds, check their ratings to avoid default in payment. You must have some expectations about the liquidity of your investment. Do compare it with the results. [B-02] Always be an informed investor. Read, analyze, and then invest. If you are planning to invest in bank bonds or RBI bonds, this information will help you understand the basics of these bonds, the types of bank bonds, their features, benefits, and other minute details. Have a safe and fruitful investment!
08-11-2023
Read More
Business Loan

Explore India's Leading Government Loan Schemes for MSMEs

If you're looking to start or grow your business, the Indian government offers several business loan schemes that are designed just for you. Whether you're a small shop owner, a startup founder, or running a local manufacturing unit, these government business loans offer quick funding, often without needing collateral. These are not just regular loans they’re PM business loan schemes and MSME loan schemes for new businesses that come with low interest rates, simple paperwork, and faster disbursal compared to banks. Top Government Business Loan Schemes in India MSME Loan in 59 Minutes MUDRA Loan (Pradhan Mantri Business Loan) CGTMSE (Govt Loan Scheme for Business) PMEGP (Startup Loan by Government) SIDBI SMILE Scheme Stand-Up India Scheme PM SVANidhi PM Vishwakarma Scheme Summary of Key Points MSME Loan in 59 Minutes While starting out, individuals often face challanges getting a MSME business loan. MSME Loan in 59 Minutes is one of the fastest government business loan schemes. You can get loan approval within an hour—ideal for those who need working capital or want to scale quickly. Loan: Up to ₹5 crore Interest: Starts from 8.5% Approval: Within 59 minutes Requires: GST, IT returns, and bank records This is perfect for small businesses and MSMEs that want a quick, collateral-free loan under a government subsidy loan for business model. Pradhan Mantri MUDRA Yojana (PMMY) Known as the most popular PM loan scheme for business, MUDRA provides three types of loans—Shishu, Kishore, and Tarun—to suit businesses at different growth stages. Shishu: Up to ₹50,000 Kishore: ₹50,001 to ₹5 lakh Tarun: ₹5 to ₹10 lakh It’s a fully collateral-free government business loan, widely used by traders, shopkeepers, and gig workers. CGTMSE – Credit Guarantee Scheme This govt loan scheme for business makes it easy for MSMEs to borrow without offering property or equipment as security. Loan: Up to ₹5 crore Coverage: 75% to 85% guarantee by the government For: Manufacturing, services, and trading units It acts as a government subsidy loan for business by reducing lender risk, especially useful for first-time borrowers or businesses without assets. PMEGP – Prime Minister’s Employment Generation Programme If you are starting a new business or small factory, PMEGP acts like a startup loan by government. You get funding and subsidy to begin operations. Loan: Up to ₹50 lakh for manufacturing Subsidy: Up to 35% depending on location and category For: New entrepreneurs aged 18+, minimum 8th-grade pass It’s one of the most useful MSME loan schemes for new business owners who want support beyond just money. SIDBI SMILE Scheme SIDBI’s SMILE offers loans for business growth, especially if you’re upgrading equipment or expanding into a new product line. Loan: Starts from ₹10 lakh Tenure: Up to 10 years Focus: 'Make in India' businesses, new-age MSMEs It supports startups and growing enterprises that fall under the government business loan scheme umbrella. Stand-Up India Scheme This PM business loan scheme is focused on helping women and SC/ST entrepreneurs set up greenfield (first-time) businesses. Loan: ₹10 lakh to ₹1 crore Use: For trading, manufacturing, or service Eligibility: First-time entrepreneurs Aimed at creating equal opportunities, this is a strong example of a government business loan for first-time borrowers. PM SVANidhi – For Street Vendors This scheme is part of government subsidy loan for business efforts targeting very small businesses like vegetable vendors, tea sellers, and cart-based shops. First Loan: ₹10,000 Next: ₹20,000 and then ₹50,000 (on timely repayment) Benefit: 7% interest subsidy For many, this is their first experience with a startup loan by government that builds their credit history. A good credit history eventually builds a good credit score. Check your credit score for free! PM Vishwakarma Scheme For carpenters, blacksmiths, masons, and other skilled artisans, this scheme offers a mix of government business loans, training, and market access. Loan: Up to ₹1 lakh Tools Voucher: ₹15,000 Training: With daily stipend Interest: 5% only Ideal for traditional businesses that want to modernize or scale, especially in semi-urban and rural areas. Summary of Key Points Government business loans offer easy funding with minimal paperwork Most are collateral-free or partially guaranteed by the government Special loan schemes exist for women, SC/STs, artisans, vendors, and startups PM and MSME-specific schemes help build and expand new businesses If you’re looking for a startup loan by government or a PM loan scheme for business, there’s likely one that fits your need
08-11-2023
Read More
Personal Loan

How can you get instant personal loan easily in India?

Instant personal loans are a great option for people who need money urgently. A personal loan is granted without any security and can be used for any expense. Also, the entire procedure can be conducted online if preferred. You can apply for an instant personal loan, get it approved, and quickly receive funds in your account. Unlike other types of loans, the borrower does not have to arrange a guarantor or provide any security. All you need is to meet the eligibility criteria the lender sets and keep the required documents ready. You can choose any lender that fits your requirements and expectations. Banks and NBFCs provide various loan products at competitive interest rates and flexible repayment options. How to Choose the Right Instant Personal Loan Lender When you decide to apply for a personal loan, there are many factors that you should consider. This includes the interest rate, tenure, and other charges, such as processing fees charged by the lender. Sometimes, lenders provide additional benefits such as free credit score monitoring or access to exclusive deals on insurance policies. As with any product, the right lender will not only check your eligibility and offer you a personal loan but also help you understand the terms and conditions of the loan. The process should be smooth so that there are no hassles later on. When choosing your lender, it is important to consider their reputation. Determining if they offer their personal loan services online is also important. Some may prefer to visit the nearest bank branch, but others may feel more comfortable applying for a personal loan online. So, check what personal loan services the bank or financial institution offers. The bottom line is that finding a lender who understands your needs and provides a personalized service is important. Check The Details Of The Personal Loan To ensure that you are financially able to repay your loan, you should check the details of your loan. It is crucial to carefully figure out the correct amount you want to borrow, which should be enough to meet your needs but not too much that you cannot pay it back. Next, check the interest rate and the tenure. This will determine how much you will pay in EMIs. Other details, such as penalties if you miss a payment, are also important. If there are penalties, determine what they are and how much they will cost you. This depends on the lender, so conduct thorough research before applying for your instant personal loan. Eligibility Requirements For An Instant Personal Loan Lenders will ask you to provide them with certain information to determine your eligibility. You will be asked about the purpose of applying for an instant personal loan and what you intend to do with the borrowed funds. Depending on your requirements, you can compare different types of personal loans in India and choose the best one for yourself. Checking your eligibility before applying for a loan will also help you save time and effort. To know whether you are eligible for a particular type of personal loan, make sure you meet the following requirements: A credit score above 750 Aged between 21 to 67 years A resident of India Identity proof documents (such as an Aadhaar card, driver’s license, passport, etc.) Residence proof documents (such as a voter’s ID, Aadhaar card, etc.) Should be salaried or self-employed (for at least 6 months) Documents Required For An Instant Personal Loan You must submit certain documents to get approval for an instant personal loan. For fast approvals, ensure all your documents and your application form are ready for submission. All your documents need to be official and must be legible. If there’s any discrepancy in the information on the application form and the documents, it could lead to rejection. The documents required for an instant personal loan include: Identity proof documents (such as a passport, voter’s ID, driving license, Aadhaar card, etc.) Address proof documents (such as utility bills, credit card statements, driving licences, voter IDs, passports, etc.) Bank statements for the previous 3 months Two latest salary slips (salaried) ITR with the balance sheet (self-employed) Also, make sure you do not submit multiple applications simultaneously for different loans, as this could also cause delays in processing your request. Application Process For An Instant Personal Loan Applying for an instant personal loan is simple. Banks and other financial institutions have made the process easy, and it can be done either in person or online. To apply for an instant personal loan, fill out the application form, which is available at the nearest branch of your lender or online. Submit or upload all the requested documentation, and then submit your application form and all supporting documents. Once your documents have been verified and your loan has been approved, the money will be sent to your bank account quickly. Since you will provide your bank account details, the lender will send the money directly to your account. You can then use the money from your instant personal loan for your various needs. [B-02] Conclusion An instant personal loan is one of the best ways to access urgently needed finances. Since personal loans are unsecured, the borrower does not have to offer any assets as collateral. Therefore, the application and approval process is fast and smooth. Before applying for an instant personal loan, it is crucial to research different lenders and find the one with the best personal loan interest rate and tenure for you. Once you have selected your lender, the application process can be carried out in person or online, and you will get access to the funds you need within a few hours or days of submitting your application.
08-11-2023
Read More