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6 Situations Where You May Need Best Personal Loans

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A lot of people are still reluctant about borrowing finance. It is because they usually do not understand how it can be useful. If you are one of them, then today’s article will give you an insight into how you can make the most of an instant personal loan.

Personal loans are one of the most convenient financing alternatives available to borrowers today. They are created so that you can generate funds immediately without much hassle. Therefore, personal loan eligibility criteria are kept simple and easy to follow.

If you are wondering about situations when personal loans can prove to be handy, then here is a list that we have created for you.

  1. Pay off credit cards

In case you have been facing problems with paying off your credit cards, then best personal loans can definitely prove to be helpful. These funds can be borrowed quickly, which is why you will be able to settle your credit card dues before it is too late. Moreover, if you search properly, then you can find a personal loan that charges less interest than your credit card company. Therefore, you will be able to make the most of this financing service for sure.

  1. Monthly expenses

Dealing with daily expenses, especially during the end of the month, can be very challenging. Waiting for the salary to come is not always the perfect solution. Therefore, personal loans are an ideal alternative to consider. With the help of this financing service, you can pay off all your minor expenses without any problems. Moreover, personal loan funds are not subjected to usage limitations. As a result, you are free to do anything with the same.

  1. Shopping

If you have been planning to buy a large appliance or something else for a long time, then also personal loans can be used. Shopping for things that cost a little too much becomes easy with this financing service. Moreover, even if you decide to buy something for your business or home, then you would not have to worry about going through a lengthy verification process.

  1. Medical bills

Apart from medical emergencies, there are other times when you might need to settle your hospital bills. It can be for a regular visit, or maybe a small procedure. For this, you can also manage your  personal loans so that you do not have to borrow money from your friends or family. What’s more, you can always have a little extra lying around just in case of a medical emergency. Overall, personal loans can be extremely useful when it comes to paying medical or medical bills.

  1. Events or holidays

The last thing that can be done using personal loans is planning events or holiday trips. Whether you want to travel within the country or abroad, you can generate funds for the same using this funding service. Even if you have events like birthdays, weddings, or anniversaries, you can now throw lavish parties using personal loans as your finance generating method.

Bajaj Finserv can provide you with financing alternatives like personal loans, home loans, business loans, and EMI finance.

They even have multiple pre-approved offers available, which can make the transaction hassle-free. This can even reduce loan processing time significantly for borrowers.

If you wish to view your pre-approved loan offers, then start by submitting your basic information like your name and contact number.

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Finance

A Guide on Difference Between Form 16 & Form 16a

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TDS was introduced for the collection of tax from the source of the income. According to this concept, an individual will deduct tax from the income source of the deductee and remit the same amount to the account of the Central Government. Form 16 and Form 16a are the necessary documents in which an employer certifies the salary details of the employees in a financial year and the tax deducted during that period.

Form 16

As per the Income Tax Act, if your income from salary for a financial year exceeds the basic exemption limit of Rs.2.5 lakh, your employer is required to deduct TDS and send it to the Central Government. The certificate issued to certify your salary details and related information is called Form 16. It is an official document which states your tax deduction is confirmed by the Income Tax Department.

Form 16 comprises two parts

  1. Part A

Part A of Form 16 provides information about the deductor and deductee. It includes the following information of both parties –

  • Name and Address of the deductor.
  • PAN and TAN details of the deductee.
  • Period of employment of the deductee.
  • Summary of TDS which is certified by the deductor.
  1. Part B

Part B of Form 16 provides the following information of the deductor and the deductee –

  • Detailed salary breakup of the deductee.
  • Other sources of income in case of multiple jobs.
  • Allowed deductions on specific fields such as pension funds, insurance premium payments, etc.
  • Amount of tax payable or refunds due.

As per the conditions of the Income Tax Department, Form 16 has to be issued by the 15th June of the respective financial year. For example, 15th June 2020 is the due date to issue Form 16 for the financial year 2019-20.

Form 16a

Form 16a is also a TDS certificate which is applicable for tax deduction on sources of income other than salary. It is an official document which portrays the amount of TDS, nature of payments, and the confirmation of payments deposited in the account of the Income Tax Department.

Form 16a is issued on the following possible scenarios –

  • A financial institution may deduct TDS on the interest income on your fixed deposit account.
  • TDS deduction on your insurance commission.
  • TDS deduction on your rent receipts.

Hence, Form 16a has all the information of TDS subtracted from any other source of income other than salary which is liable for tax deductions. The certificate also provides information about the following details of the deductor and deductee –

  • Name and address.
  • PAN and TAN details.
  • Details of challan generated for TDS.
  • Income details and the amount of tax deducted.

All the information mentioned in Form 16a is also available in Form 26as. In order to file your tax return, Form 26as is just as essential. Both the forms are important for smooth filing of your tax returns.

Difference between Form 16 and Form 16a

  1. Form 16 denotes how much tax was deducted on the salary of an employee while the non-salaried earnings of an individual are detailed by Form 16a.
  2. Form 16 is issued when the total income in a financial year exceeds Rs.2.5 lakh for a salaried employee. In the case of non-salary incomes, Form 16a is issued when the sum total of these earnings is liable for TDS.
  3. Form 16 is issued annually while Form 16a is issued quarterly.

Form 16 and Form 16a are considered as proof of income of an individual. Financial institutions set up eligibility criteria for credit card application processes that require individuals to provide an income-proof; this is among the important things to know before applying for a credit card.

So, while applying for a Bajaj Finserv RBL Bank SuperCard or any other credit card, you can provide the Form 16 and Form 16a documents as proof of income to meet the eligibility criteria.

There are several other factors that you should keep in mind before applying for a credit card –

  • Healthy CIBIL score.
  • Age
  • Legitimate KYC documents.

Not meeting the eligibility criteria is among various reasons why your credit card application can be rejected.

If you are applying for a credit card, you would not want to miss out on pre-approved offers provided by NBFCs such as Bajaj Finserv. These offers help reduce the time taken and hassle to availing financial products. Pre-approved offers are also available on numerous other financial products such as personal loans, home loans, etc. Check your pre-approved offer after providing your name and mobile number.

Managing a credit card can be difficult if you are unable to pay your credit card bills on time. You need to know how to reduce your credit card interest and save money.

The Income Tax Department has extended the facility of online verification of Form 16a since the financial year 2011-12. It is mandatory to comply with the taxation regime via these two forms. Refer to your employer to understand the details and deliverables from your end if need be.

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Finance

Gold Loan Interest Calculator – Know How To Use

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gold loan

There are times when there is a need for urgent funds. Reasons could be to give your home a small renovation or repay some debts off or pay off medical bills etc. It is during times like these that the extra gold laying in your locker can be the perfect means to cater to your financial requirements. The surplus gold in your locker can be used as a collateral to get a gold loan. Loan against gold are secured loans with an affordable rate of interest. It is an easy way to get instant cash without any hassle. It is quick and involves very little paperwork. There are a lot of other amazing features of gold loans that we are going to discuss later in this article. Gold loan interest calculators are available online to provide you with the precise figure of gold loan interest that you have to pay at the end of the gold loan tenure. This will help you compare and assess different interest rate schemes offered by multiple lenders letting you pick the gold loan scheme that best suits your needs.

Features of gold loan

There are a lot of interesting features when it comes to gold loans. Some of them have been discussed below.

Faster approval

Unlike personal loans, gold loans are secured loans. Secured loans are the one in which the applicant has to pledge some of his owned property as collateral for security. In case the individual fails to repay the loan, even within the grace period, the lender has the right to auction the individual’s collateral to get his sum back. Since the gold loans ask for pledging gold as collateral the lender is more than happy to approve the loan. Since the gold loan is secured, it requires less documentation and hence faster verification.

Avail gold loans irrespective of your credit score

The credit information bureau India ltd., also known as CIBIL in short, is responsible for assigning credit scores to an individual. CIBIL score is a three-digit score, ranging from 300-900, given to an individual based on his or her last 6 months of financial data. An individual with a good CIBIL score is considered to have financial stability in life and hence are preferred by the loan lender. Financial institutions use CIBIL as proof of credit behavior and sanction loans to borrowers with a good CIBIL score. Gold loans, on the other hand, are approved, even for applicants with a low CIBIL score since gold is already taken as collateral against the loan for security.

Less paperwork

Gold loans require very little paperwork. Since gold loans are secured loans it does not ask for the individual’s income proof or income tax return statements. The only requirements are some basic proofs of identities. This makes the verification process a lot easier and a lot faster than all other kinds of loans, making it the perfect option to go for when in urgent need of cash.

Affordable interest rates

Gold loans come with affordable rates which are much lower as compared to personal loans and others. Different lenders offer a varied scale of the rate of interest. A little bit of research on the lenders that are offering the lowest rate of interest can help you save some money. The rate of interest on gold loans can easily be calculated using a gold loan interest calculator. Let us look at how to use a gold loan interest rate calculator.

Using a gold loan interest calculator

Calculating gold loan interests and equated monthly instalments can be quite tricky. But do not worry since that is where a gold loan interest rate calculator swoops in to make your job a lot simpler and easier. Gold loan interest rate calculator programme is uploaded on multiple sites of gold loan lenders and hence can easily be found online. The user simply has to put the right inputs into the calculator to get the exact figure of gold loan interest that he or she is supposed to pay according to the terms and conditions of the particular gold loan scheme. Gold loan interest calculator comes with three fields that the user is supposed to fill which includes the loan amount, rate of interest and loan tenure. Follow these few simple steps while using a gold loan interest calculator.

->Compare the rate of interest offered by various lenders.

->Select the gold loan scheme with the lowest interest rate.

-> Select the gold loan amount and gold loan tenure according to your suitability.

-> Fill the three fields in the gold loan interest rate calculator and press on calculate.

This will give you an exact figure of the interest that you have to pay. It will also evaluate the exact amount of equated monthly instalments that you have to pay. This will help you to get a vivid idea of whether or not it will be feasible for you to repay the loan adhering to the terms and conditions of it.

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