Financing by a vendor is common when traditional financial institutions are reluctant to lend a business a considerable amount of money. This might be just because of the fact that the business is comparatively new or does not have considerable established credit. A business vendor comes in to link the gap and create a business association with the customer. Companies often like vendor financing when buying necessary goods that are available at the vendor’s store. The practice enables them to obtain trade credit without the necessity to borrow from the bank or use their retained earnings.
How to apply for vendor finance?
Read Also: How to Apply for a Vendor Financing Scheme
Are you applying for a home loan to finance your dream home? It is necessary to get the best housing loan rates to save a lot of money that you pay as interest. This will help to reduce the overall tenure of the loan and EMIs. In order to compare the loans and calculate the overall interest you have to pay on EMI and loan, it is best to use different tools available over the internet. Always pick the right lender who can meet your home loan requirement and provide a loan at the lowest possible interest. Along with this, you can easily negotiate for lower housing loan rates. Here are a few tips to negotiate for the best loan interest rate.
The working capital calculation can give short term financial position and the creditworthiness of the company. A business should have a healthy cash flow to maintain efficiency and liquidity. Working capital fluctuates on a daily basis but can be maintained by improving the working capital cycle.
Here are a few points that can help balance the working capital cycle.
• Better management of inventory through real-time updates
• Money should be spent wisely on all the expenses
• Collection of bills receivables on time
Business may at times, face financial crunch, bankruptcy, and negative balance. In order to keep functioning, the business needs to generate working capital or take monetary support from the financial or non-financial institutions. Here are some ways of generating working capital.
• Working capital loan
Safest and quickest way of fulfilling your monetary needs, working capital loans do not require any security, and you can avail a loan up to Rs. 30lakh. The loan typically gets approved within just 24 hours. The borrower pays interest only on the amount utilized in the business cycle.
• Selling of assets
The assets which are least useful to the company can be sold to meet your working capital requirements. Selling off the underutilized assets can help maintain financial health.
A business, when faced with a cash crunch, can generate the required funds from investors or customers. While there is no guarantee that you will collect your required capital, this method could work out cheaper.
Read Also: 4 Best Sources Of Working Capital For Your Small Business
India is one of the biggest democracies in the world. The country is home to more than a few indigenous culture and religion. However, the only problem with India is the ever-increasing economic disparity and lack of understanding about priorities. As per one of the articles by The HINDU, more than half a billion families in India have a smartphone but lack a pucca house with all the modern-day amenities including a proper toilet. Such contradictions portray a country with some of the trappings of modernity combined with living conditions in India’s 247 million households that look more medieval.
What can be the possible reason for such problems apart from the economic disparity? Well, lack of government’s attention towards the needs of the lower middle class can be one reason, the other being lack of proper funding options making it difficult for people to own a house of their own.
Is there a solution to curb this ‘homelessness’ problem?
When it comes down to it, a few years ago there was nothing that could have facilitated the process of owning a home. However, at present we have Pradhan Mantri Awas Yojana Urban and Rural - a government backed funding scheme which helps lower and mid-income groups with affordable home loans and subsidy to make housing an affordable option for themselves.
In 2015, PM Modi announced the PMAY and the PMAY CLSS for the rural and urban working class, making affordable housing a thing in India. Check out the scheme and find out if you are eligible to know whether you can benefit from the facility or not.
Reference Read: Affordable Housing Changing The Face Of Real Estate Sector
No borrower would leave a chance to see for a lower your loan repayments even when there are smarter options. We always keep looking for the market or banks providing better schemes for home loan balance transfer. However, many people have little knowledge about what exactly this transfer process is.
What Exactly is Balance Transfer of Home Loan?
To explain this, suppose you have home loan of Rs 15 lakhs availed for 15 years. After 5 years, the amount remaining Rs 10 lakhs. This is the outstanding balance. With home loan balance transfer it means you are transferring the loan from one bank to another.
So How You can Benefit with this Balance Transfer Loan-
Increase in the Home Loan Tenure-
When you transfer the balance home loan, you get an extension of home tenure. This can be further beneficial when your income has scaled up.
Reduction in Interest Rate-
This is the biggest benefit the borrower can have. You will definitely look for a bank that offers the lowest interest rate. Even the smaller reduction of 0.30 to 0.50% would be a huge saving.
Reference Read: Extending Home Loan Tenor with Balance Transfer Facility
If you are planning to apply for home loan, you need to consider the following factors to improve your eligibility:
1. Pay off the existing debts:
If you already have any other loan like personal or car loan, you need to pay off all the loans to improve your home loan eligibility. Clearing your existing debts on time creates a positive impact on lenders.
2. Get a copy of your credit:
Before applying for a home loan, you need to retrieve a copy of your latest credit report from CIBIL for getting your credit score or knowing about any discrepancy. If there is an error in your personal information or any other information, you can get it clarified before applying for a loan.
3. Add parents/spouse as co-applicants:
You can show your immediate family members as co-applicants. This not just adds a monetary impetus on the home loan application but even provides the lenders with an extra layer of security while improving your home loan eligibility.
4. Choose a Longer Tenure:
While the interest charges will be higher for a longer tenure, it helps you get a loan amount of your choice. In case, you’re not satisfied with the amount approved, you can talk to the bank representatives for confirming a bigger term to become eligible for the higher loan amount.
5. Declare “All” income sources:
If you have any additional sources of incomes like rentals and dividends drawn on your investments, you have to let the banker know about it. Even future bonuses can be discussed with the bankers for adding weight to your home loan application.
Reference Read: 4 Secret Tips To Improve Your Home Loan Eligibility
If you are worried about working capital of your business going for a toss, here are some tips one can follow to improve the same. These tips will help in the smooth functioning of the business to a great extent.
A good working capital helps in the smooth functioning of the business. But often due to the increase in current liabilities and expenses over the current assets, the day-to-day operations of the business go for a toss. Hence, it becomes difficult to increase the operating profit of the business, which is most crucial for running the trade well. Below are the points, which will help in increasing the working capital of the business.
Invest your operating profit to cover your short-term liabilities
The WC is used mainly for the short-term investments of the company. Therefore, it is advisable not to exhaust it completely in the long-term investment like purchasing of machinery or equipment. Instead, lending or renting the machinery shall be considered.
Choose the right kind of asset financing
The different kinds of financial institutions provide a variety of financing, be it accounts, inventory or working capital. It’s a short term financing which can be used to support the day-to-day operations or can be used to cover the funds that are stuck in account receivables.
Increasing inventory turnover ratio
Reducing the storage expense of the inventory and slowing down the manufacturing of the goods can increase WC.
Smartly negotiate with suppliers
Considering the chain effect as your customers negotiate with you, which reduces your profit margins. In order to improve on that, it is required to smartly negotiate with the suppliers.
Look for government support
As startups are the need of the hour, supporting SMEs is currently a priority sector for the government. Hence, one can explore availing working capital support from government institutions at a much competitive rate.
NBFCs are great for a doctor who is planning to take a loan. Read to know more.
Banks along with various Non-banking financial companies aka (NBFC) are the two
dominant members in the current loan market. In the last decade or so, NBFCs have
steadily become an intense competitor for banking sectors.
The wide-scale nature of it
NBFC’s are providing loans to doctors in the following forms:
Quick approval rates
NBFCs are a better choice over banks, because of its loan approval time. These
commercial companies approve loans within 24 hours.
Fewer documents required
The document required is minimum, medical certificate and other KYC documents like
(Passport, Driving License, PAN card, Passport, Aadhaar details, etc.)
The features of secured and unsecured loans in NBFC’s
One needs to have a PG degree for the loan. Secured loans are loans granted to doctors
against some personal property for any unwanted damage in the process. Dentists with
5-years of expertise are preferred, while graduate doctors with 3-years are granted loans.
Unsecured loans are a loan that doesn’t need any backing in the process of acquiring it,
in the form of collateral. Dentists with 5 years of experience and graduate doctors with
2 years of work experience can avail for the loans. The criteria and the numbers in the
form of experience relaxation vary accordingly. Pre-approved offers come with a
spectrum of financial products along with delightful services are a highlight to the
Also Read: NBFC vs bank: Which one Should you Choose When Opting for a Loan for Doctors?
Erode, renowned as Turmeric City for its major share of turmeric production, also houses edible oil mills, rice mills, cotton industry, mineral (non-metallic) products, food production industries, leather, etc. Apart from that, Erode Municipal Corporation is chosen for SMART city mission under the Government of India initiative. The city also leads in many small scale industries, small business units, industrial complexes and SEZs. All these make the business houses and small industries in Erode to go for the expansion of their business and for which it is ideal for them to opt for the business loan in Erode. Some of the wisest steps that you can take to improve your business are:
When you go for small business loan from NBFCs, you get many benefits like flexi loan facility, finance up to Rs 30 lakhs, unsecured loans, lower interest rates, flexible repayment tenure, pre-approved offers and online loan account access.
So go for your business loan in Erode today from leading NBFCs!
Read Also: Smart Tips to Grow Business in Erode
The credit score is the primary parameter for the financial institution to judge the creditworthiness of a borrower. Credit rating defines your capability to avail the loan, earnings and repays it. This rating starts at lowest of 300 and rises up to 900. The range your score falls defines your creditability for the lender. A person with higher score enjoys the easy, enough and desired loan. Thus, keep an eye and boost CIBIL score to enjoy different loans and other credit facilities. For this, the score should be around 750.
The Credit rating and score are issued by 4 different companies like CRIF Highmark, TransUnion CIBIL, Experian and Equifax and hold a license from Reserve Bank of India. With the increase in the demand of loans and other credits, the financial institutes make it a base to analyze an individual’s eligibility and issue the credit as per the score. With this, it is important to keep track of the score and boost the CIBIL score. People who are not aware of this score often do not know how it impacts on an individual’s ability to enjoy needed credit in an emergency situation.
This score depends on factors like age, income, expenditure habits, debt repayment behavior and other financial reasons. Once you know your rating, you can easily follow steps to correct. Thus, keep a check on your CIBIL rating and correct it over time if you have poor credit. All you need is to practice sound financial behavior to increase this score.
Home loan is one of the easiest ways to buy a plot of land for constructing a new house or to renovate an existing house. With increasing competition among the financial institutions, applying for a home loan has become a lot easier than ever before.
Procedure for a Home Loan:
First of all, you need to check your home loan eligibility as per your repayment capacity, which is determined based on your monthly expenses, monthly income or other liabilities. You can repay the loan amount to the bank in monthly instalments.
After considering your eligibility, the bank will consider your property’s value that needs to be properly financed. Home loan is a secured type of loan and the property’s papers will remain with the bank itself until the loan amount is repaid.
How to Apply for a Home Loan:
When it comes to how to apply for home loan, you need to know all the aspects to avoid any rejection. The application process for a home loan is very simple. The very first step is to find out the bank to apply for a home loan. Different banks charge a different interest rate on the home loan they offer. Keeping in mind the charged interest rate and your financial capability, you can choose a bank for applying for the home loan. After checking your eligibility criteria and checking your property’s value, a bank can sanction you the loan amount.
Documents needed for getting a Home Loan:
There are certain required home loan documents which are necessary to avail housing loan facility. A few mentioned below:
Based on all the submitted documents, the bank will decide whether or not to approve your home loan application.
While nationalized banks mandate collateral for a business loan to hedge against non-repayments, Non-Banking Financial Companies (NBFCs) do not put such onerous requisites. They provide loans minus security or guarantee if the loan seeker fulfils certain criteria. Though the interest rates are slightly higher vis-à-vis the nationalized banks, the loaning process is simple, efficient and quick.
Here’s exactly what a typical NBFC loaning process looks like.
Specifications may vary but generally, all NBFCs have similar eligibility criteria. Typically, the business loan without any security seeker should be an Indian citizen aged between 25 and 58 years, preferably salaried for at least 3 years. The minimum CIBIL score requirement of 750 is also applicable.
A personal loan is a type of unsecured loan, which is offered to an individual for meeting different financial requirements. However, you might be making certain mistakes that may lead to your loan rejection. Here are some common mistakes to avoid personal loan rejection:
1. Multiple Loan Applications
When you apply for a personal loan, the bank is likely to inquire about your credit report with the Credit Bureau. If you have applied for multiple loans in a row, many lenders perceive you as credit greedy and someone who is not able to handle their money properly. So, don’t rush to applying for multiple loan applications at once. Apply for a loan at one place and wait for the response. If it’s rejected, wait and try to improve your credit score and then apply again after some time.
2. Bad Credit History
The credit score has a big impact on your instant personal loan application. If you have a bad credit history due to default repayments or more debts, your loan application is likely to be rejected. So, you need to maintain good credit for attaining a personal loan.
3. Higher Existing Debts
You may face personal loan rejection, in case you have higher existing debts. The high debts make you appear a risky applicant in the eyes of a lender and it may result in your personal loan rejection. To avoid this, you must pay off your debts on time.
4. Unstable Employment History
Many banks lend money to applicants who have stable employment or business with a regular income. If you are someone with unstable employment, your personal loan application might be rejected due to unstable income or any other financial reason.
Do you wish to invest in property and buy a home? All you need is to know your eligibility, prepare required documents and look for the best finance option available in the market. With different financers entering the market nothing to worry to avail home loan, as you get various options to pick from. Before you make the decision it is best to calculate your home loan eligibility. Look for the key features of your loan and get it approved quickly. Now you can easily apply for the home loan online from Bajaj Finserv and get the amount approved quickly.
Use the loan calculator as this will help to get clear details on the home loan amount, interest rate, interest paid, the tenure of the loan and EMIs to be paid each month. Hence, use the home loan calculator and ensure that you can easily pay the monthly instalments based on your earnings. This calculator will also help to plan your finance in a particular manner and get the home loan in favourable terms.
When you calculate your home loan eligibility, you know how much home loan you can avail, tenor, repayment options and documents required. Once this is completed you get a better view of the best interest rates on home loans, right loan amount and EMI schemes for the loan. Hence, before you apply for a loan, know that you meet all the eligibility requirements that financial institutes consider before lending money. Finding a good loan will provide a stress-free finance solution for buying a home.
Reference Read: Determine Your Eligibility Before Applying for a Home Loan
RERA act was launched in March 2016 in order to exercise greater control over the real-estate sector. In addition, the RBI launched the MCLR lending system to make lending more cost-effective for the end consumers. In and all, there have been a lot of changes in the real-estate market in the last couple of years, making it a lot easier for people to own a home compared to earlier times. Despite all this, a majority of Indians don’t own a home.
In purview of this problem, the Indian Government had launched the Pradhan Mantri Awas Yojana scheme. The main objective of this scheme is to provide housing to all at affordable prices. It was launched with an aim to make over 20 million people homeowners by the end of the year 2022.
PM Awas Yojana Overview:
As a part of the updated scheme, people belonging to the EWS, LIG, MIG 1 and MIG 2 category can avail a home loan at subsidized interest rates. That said, anyone belonging to either of the four categories is eligible only if they don’t own a house in any part of India.
PMAY CLSS Overview
The PMAY scheme was earlier only available for EWS and LIG which was later revised and extended to the MIG category as well. So, people who had recently bought a home without using the subsidy weren’t able to benefit from the scheme. Hence, PMAY CLSS came in for people who already had a home loan in place. As a part of this scheme, people who took a home loan after Jan 1st 2017 can claim it.
Read Also: A Big Thanks To Pradhan Mantri Awas Yojana
Business Loan for Traders is intended to help business owners to meet their needs for purchasing goods and services, furnishing, working capital, renovating the business premises, purchasing new equipment, etc.
What are the benefits of business loan for traders?
1. Quick approval
If you are in need of urgent cash flow for buying machinery or equipment, upgrading the existing business property, etc., you can apply for the business loan for traders for up to INR 30 lakh within 48 hours of approval.
2. Flexible Loan Facility
Certain NBFCs offer you doorstep or flexible loan facility, where you have to pay 45% less on EMIs. This can be acquired if you apply for the flexi-loan facility or term loan for business finance.
3. No need for collateral
For a business loan for traders, no collateral is required. This means you don’t have to put your personal or business assets as security for acquiring this loan amount.
4. Preapproved Offers:
Certain banks or NBFCs provide pre-approved offers to the applicants, including reduction of rates from time-to-time and top-up loan.
5. Online Account Access:
When applying online, you can easily access your loan statement, as well as manage your funds anywhere, anytime, through the online customer portal.
Lenders offer business loan catering to the unique requirements of companies. These products differ in the loan amounts disbursed, tenors, interest rates, repayment schedules and various other aspects. These advances can help to overcome the challenges small business owners face, finance their purchases and integrate the necessary equipment to improve their production line. So, if you want to leverage from the existence of business financing schemes in India, below are some suitable options.
Bottom line: Every lender has laid down eligibility rules which they expect every loan applicant to qualify. So. in order to get sufficient business financing, you’ll have to find out what those rules are and make sure you can qualify them.
Also Read: What Are the Different Types of Business Loans in India You Can Go for?
For most of us, when it comes to purchasing a home, our savings do not suffice. This is why we have to resort to financing and in which the best option is home loans as they have been designed keeping in mind the requirements of home buyers.
We keep paying our EMI’s and repaying our debts but there is always better options and improvement in the current system.
We might have taken Home Loan from a lender which at that point of time was providing the lower rate of interest and probably higher quantum, but we must keep an eye over the market and look for banks which are providing better and lucrative schemes for the outstanding balance transfer of the home loan.
What is Balance Transfer?
If due to some reason or the other, you are not satisfied with your existing lender or are getting better terms and conditions with some other lender, then you can change your lender and get your existing home loan transferred from one lender to the other. This entire process is what is known as a home loan balance transfer and provides many benefits, a few of which are as follows -
Home loans are usually of a very long duration and when we opt for them, it is just impossible to foresee the expenses which may crop up in the future. As such when later our expenses increase, we wish that the repayment tenor was a bit longer so that the instalment comes down.
While your existing lender may not allow you this facility, but with a home loan balance transfer facility, you can change your lender and opt for an increased tenor in repaying back the home loan.
Interest Rate Reduction
With any loan, including home loan, there are two types of interest rates which are available. These are - floating rate and fixed rate. In case of floating, the interest rate keeps fluctuating with the market conditions and the benefits of a reduced interest rate are passed on to the end user. In case of fixed however, the interest rate remains fixed throughout the repayment tenor.
It has observed that in the long run, fixed interest rate turns out to be higher than floating interest rate. Many people do not realise this and end up opting for fixed interest rate. However, when they want to change to floating the existing lender does not allow it. Here also a home loan balance transfer can be of immense help as the new lender will once again give you the option of choosing between a fixed and a floating interest rate and you can choose the one which suits you the most.
Read Also: Extending Home Loan Tenor with Balance Transfer Facility
Buying a home of your own is a big financial task, especially if a home loan has been employed for the purpose. In such cases, you’re not only paying the principal cost of the house, you’re also paying a high amount as interest against the loan taken. To give you a gist, you pay exactly double of what you borrow if the foreclosure happens naturally - without any part-prepayments.
In such circumstances, all home loan subscribers should be aware of and should make the most of income tax rebates available. Again, the said can be done only if people are aware. Hence, below are the income tax benefits for home loan subscribers which are available:-
Tax benefits for first time owners: Apart from the tax benefits on interest and principal component available under 80C and 24B respectively, first time home-owners get an additional rebate of Rs 50, 000 a year. Though there are different terms which you must be aware of.
Tax benefits on interest component: As mentioned above, existing home loan subscribers can claim up to Rs 1.5 lakh as tax rebate on the principal amount paid towards home loan under section 80C of the Indian Income Tax laws.
Tax benefits on principal component: In addition, housing loan subscribers can also claim up to Rs 2 lakhs as deductions under section 24B on the interest component paid every year against the loan.
Read all the terms and conditions before filing your ITR.
Reference Read: Maximise Your Income Tax Benefit on Home Loans
To buy a property, you can easily apply for a home loan but you also need to be careful while choosing your EMI amount to keep the repayment process easy and stress-free. Here are some important factors that may help you calculate the home loan EMIs within your budget:
- Interest Rate
When calculating the EMI amount, you need to consider the interest rate. You must ensure that the interest rate is lower and it meets all your home loan eligibility criteria, along with your good credit score. Secondly, you must pay attention to the interest rate type. If a home loan is on a floating interest rate, it is likely to change with market fluctuations. This means an increase in the interest will lead to increasing EMIs. However, the fixed rate of interest is not affected by market fluctuations.
- Home Loan Tenor
The longer the house loan tenor, the lower will be the EMIs. The shorter tenor means higher EMIs. You need to consider this fact based on your repayment capability. Using the home loan EMI calculator, you can easily forecast the ideal tenor as per your financial capability.
- Prepayment on Home Loan
You must check your prepayment charges before applying for the loan, as prepayment can help you lower the EMIs.
Read Also: Choose Wisely Your Emi Amount While Availing Home Loan
Life’s getting busier with every passing day, and so people are left with very less time to maintain the work-life balance. Amidst this time crisis, it certainly not possible to take out sufficient time on crucial instances such as when needs a loan. No one has the time to stand in endless queues outside banks and NBFCs to talk about and then apply for a loan. This conundrum or catch 22 gave birth to ‘finance app’ - an app that would let potential loan applicants to checkout their options and then apply for the most suitable debt product on the go.
What is a Finance App?
A finance app, as the name suggest, is nothing but a mobile application that lets you apply and avail credit schemes offered by the parent organisation. For instance, someone planning to take a loan can use a finance app to check out the different credit schemes offered by a particular lender, register and then apply if the scheme fits the bill.
Advantages of finance app?
For a trading business or any other business, managing working capital is absolutely crucial, as an adequate amount of cash should be there at all times to meet short-term business commitments.
Following are some effective tips to help you manage working capital efficiently:
For making the payment receivables period short, a business must have a good collection system. The invoices must be generated on time to avoid any inefficiency or delays for receiving the payment.
You must reassess your credit terms and contracts with debtors to ensure that you are not expanding a window for them to pay for goods or services. Debt must be collected on time; otherwise, it could have a negative impact on the working capital.
By making working capital a priority, businesses can surely make some strategic and good investment decisions for operations and other work processes. There must be enough operating liquidity to prevent any huge effect on the company’s cash flow.
Read Also: 5 Tips to Manage Working Capital for Your Trading Business
Nothing is certain in business. A business owner has to face several financial crisis and drops and often face a situation to raise funds. This has increased demand for a business loan at the time of external fund requirement. In order to have enough capital and liquidity for a business, loans for business is the best option. Before applying, it is necessary to know the factors that affect loan eligibility and Business loan interest rate.
Factors that influence the interest rate for a business loan
Size, type, plan and vintage of business: A lender offers the business loan consider the type, size, vintage and plan of the applicant’s business. All these factors reflect business growth in future and credibility to repay.
low-interest rate and less loan amount mostly have a high-interest rate.
CIBIL Score: Credit score is the primary factors that a lender considers in a business loan. A good credit score lowers the interest rates for such loans. It is necessary to improve the CIBIL score before applying for this loan.
Loan tenor and annual revenue: Business loan interest rate gets lower with higher loan tenor and increases with short loan tenor. High annual revenue of the business also lowers the interest rate.
Read Also: What are the Factors that Affect Your Business Loan Interest Rate?
Have you bought your dream home by availing home loans? Is your home loan breaking you? Then it is the right time that you opt for home loan balance transfer. First of all, you can ask your own lender to decrease the interest rate according to the market condition. But after the reduction you still find your home loan unmanageable then you should approach other lenders for a balance transfer. Switching your loan from current lender to a new lender is called as balance transfer thereby reducing the EMIs. But it involves transfer charges which include the following:
Apart from the above, there might be some other charges which might vary from one lender to another.
Normally, you should go for home loan balance transfer during the first half of your loan tenor because during this period you might not have paid heavy EMIs. Check that after the transfer you get enough savings. If not, it is not advisable to go for a balance transfer.
Now-a-days, apart from banks, many NBFCs are also accepting balance transfer. You need to research and select the best option available for the balance transfer just like you must have done for availing the loan. They also have home loan balance transfer calculator available in their website through which you can calculate the savings you will make through this balance transfer. It involves minimal documents verification as you are already paying the EMIs with the current lender. If you are suffering from the huge burden of home loan EMIs, then it is the right time to opt for home loan balance transfer.
Read Also: All You Need to Know About Home Loan Transfer
Pradhan Mantri Awas Yojana (URBAN) scheme offers the housing solution for
constructing, purchasing, extending or renovating houses that cater to Lower Income
Group (LIG), Economical Weaker Section (EWS) and Middle Income Group (MIG).
Features of Pradhan Mantri Awas Yojana:
Eligibility for PMAY scheme:
The beneficiary household under the Pradhan Mantri Awas Yojana scheme will
comprise husband, wife and their unmarried children. Any adult (unmarried or married
member) will be treated as a separate household under the MIG category.