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Personal Loan

Complete Guide On Personal Loan EMI Calculator Online In India

When it comes to dealing with urgent costs, personal loans are one of the most useful financial tools. It can help you recover from a financial crisis and enable you to pay your bills on time. You can make use of personal loans to pay for expenses such as a wedding, house remodelling, or foreign trips. So, if you are looking for a personal loan in India, you must do your research before you get started. It would be best to use a personal loan EMI calculator online in India. This will help you learn how much money you can get and what interest you will be paying. Let’s start with what is a personal loan EMI calculator online and how to use it. [B-01] Understanding Personal Loan EMI Calculator Online Simply put, a personal loan EMI calculator online is a tool that allows you to decide on the ideal tenure and EMI for your loan. Personal Loan EMI Calculator available online helps you quickly calculate your EMIs. This will help you calculate interest cost, and the total amount payable against various loan amounts with varied interest rates and loan tenures. How does this help, you may think? Well, once you know your EMI ahead of time, it helps you plan your budget before you opt for a personal loan. Generally, most lenders will deny a personal loan if the total EMIs, including the projected EMI of the new loan, exceed 50% – 55% of your take-home pay/ salary. Calculating Personal Loan EMIs When you begin to calculate personal loan EMI, you’d have to keep three major criteria in mind, namely: Your desired loan amount. Your desired loan term. The interest rate. It’s crucial to learn that these values may differ based on the loan provider. However, these are the three primary factors that determine the EMI on a loan. Thus, before you select a loan, it is vital to understand these three factors and how they result in the loan EMI. Let’s understand the three primary factors better below: Loan Amount The loan amount denotes the loan principal. This is the actual amount that you borrow from a lender. This loan amount is defined by a variety of criteria relating to the loan application. Based on the loan amount, lenders calculate the interest rate. You must also know that the higher your loan amount is, the greater the monthly EMI will be. While using the personal loan EMI calculator online, you need to enter the principal amount you desire to borrow in the loan amount field. Loan Tenure Loan tenure refers to the overall time duration of loan payback. Note that loan terms vary based on the type of loan, the loan balance, and the lenders you choose. For example, with personal loans, you will have shorter repayment terms of up to 5 years. Whereas, with home loans, you will find a longer repayment term of up to 25-30 years. Keep in mind that the longer the term of the loan, the more interest you will be required to pay, and thus higher the EMIs. Interest Rate Interest rates denote the rate at which you borrow an amount from the lender. Based on the type of loan, the principal amount, the tenure, and the lender, you will find offers with interest rates. It is advised that before you select a loan offer, you must examine the interest rates offered by different lenders to pick the ideal option. The personal Loan EMI calculator online uses the following formula: EMI = [P x R x (1+R)^N]/[(1+R)^ (N-1)], The variables in this formula denote: EMI stands for easy monthly instalment. P denotes the principal amount borrowed. R denotes the interest rate charged. N denotes the loan’s payback period (tenure should be in months) A personal loan EMI calculator online uses this formula to decide the right EMI amount in seconds. To help you further understand the calculations of the personal loan EMI calculator online, here’s an example: Let’s say, you take out a loan of Rs. 1 lakh (Principal amount), for a tenure of 2 years (Payback period), at an interest rate of 15% per annum (The interest levied by the financial institution). To begin, you must convert the yearly interest rate to a monthly rate and the overall duration to months. You divide the annual interest rate by the number of months in a year, i.e. 12, to get the monthly interest rate, which is 15/12 = 1.25% each month. Before you include the 2-year loan duration into the calculation, you must convert that into months as well, which is 2* 12 = 24 months. Now you have the three variables with you which can be integrated into the formula as follows: EMI = [P x R x (1+R)^N]/[(1+R)^N-1] EMI= [1,00,000 x 1.25/100 x (1+1.25/100) ^ 24 / [(1+1.25/100) ^ 24 – 1)] EMI= Rs. 4,849 This is exactly where using a personal loan EMI calculator online comes in handy. You don’t have to do the calculations yourself when you have a perfectly designed tool to help you do so. If you are still not convinced about using a personal loan calculator online, here are some other benefits you must know: – You can experiment with the EMI calculator to find the ideal EMI amount of your choice You can check your loan eligibility You can get the best loan offers according to your eligibility and unique requirements You can compare different loans against the pre-set parameters You can apply online for a loan immediately Manage Finances The Smart Way Ahead By Securing A Personal Loan In India When you consider the intricate mathematics required, manually calculating EMIs can be difficult and time-consuming. So why bother with the hassle, when you can do it the easy way? [B-02] Leading lenders such as Piramal Finance have a personal loan EMI calculator online to make EMI calculation hassle-free for you. The online personal loan EMI calculator available with Piramal Finance is absolutely simple to use. Plus, the bonus point is, when you explore personal loan options on Piramal Finance, you can also make use of their expert financial advice to ensure you make the right decision.

08-11-2023

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Everything you need to know about Working Capital Management in India

Managing the day-to-day finances of a business is critical for ensuring smooth operations and financial health. This is where working capital management comes into play. Regardless of the business size, efficiently managing working capital ensures that companies can meet their short-term obligations, sustain growth, and enhance profitability.In this guide, we will explore what is working capital management, its meaning, components, objectives, and the most effective approaches to manage it in today's competitive environment. Working Capital Management Meaning Working capital management is the process of handling a company's short-term assets and liabilities to ensure sufficient liquidity for daily operations. It involves balancing current assets (like cash, receivables, and inventory) against current liabilities (such as accounts payable and short-term debts).In simple terms, working capital management ensures that a business has enough cash flow to cover its regular expenses without over-investing in resources.Key Takeaways Working Capital Management Definition: The strategic handling of current assets and liabilities to maintain liquidity and operational efficiency. Ensures smooth day-to-day business operations. Involves decisions on cash, inventory, receivables, and payables. A key indicator of a company's short-term financial health. Working Capital Management Formula The basic formula to calculate working capital is: Working Capital = Current Assets – Current Liabilities A positive working capital indicates that the company has sufficient short-term assets to cover its short-term liabilities, reflecting good liquidity. Conversely, a negative working capital suggests that the company might face financial stress and struggle to meet immediate obligations. Example 1: Healthy Working Capital Scenario ABC Textiles Pvt. Ltd. has the following financials: Current Assets: ₹15,00,000Cash: ₹3,00,000Accounts Receivable: ₹6,00,000Inventory: ₹6,00,000Current Liabilities: ₹10,00,000Accounts Payable: ₹7,00,000Short-term Loans: ₹3,00,000 Applying the formula: Working Capital = ₹15,00,000 – ₹10,00,000 = ₹5,00,000 Interpretation: ABC Textiles has a positive working capital of ₹5,00,000, reflecting good financial health. The company can easily meet its obligations, pay its suppliers on time, and maintain operational stability. Example 2: Worst-Case Scenario – Negative Working Capital Let’s assume ABC Textiles faces delayed receivables and unsold inventory, reducing its current assets to ₹8,00,000 while liabilities remain the same: Current Assets: ₹8,00,000Cash: ₹1,00,000Accounts Receivable: ₹3,00,000Inventory: ₹4,00,000 Current Liabilities: ₹10,00,000 Applying the formula: Working Capital = ₹8,00,000 – ₹10,00,000 = -₹2,00,000 Interpretation: ABC Textiles now has negative working capital of ₹2,00,000. This is a red flag indicating liquidity problems. The company may: Face difficulties paying suppliers. Risk penalties due to delayed payments. Be forced to take on costly short-term debt. Suffer operational disruptions. Benchmark Guidance: A Current Ratio (Current Assets / Current Liabilities) below 1 indicates liquidity stress. Ideally, maintaining a ratio between 1.2 to 2 is considered safe. For SMEs, ensuring working capital is at least 20% to 40% of annual turnover helps maintain financial flexibility. Working Capital Metrics To evaluate working capital efficiency, businesses use various metrics: Current Ratio = Current Assets / Current Liabilities Quick Ratio (Acid-Test) = (Current Assets – Inventory) / Current Liabilities Days Sales Outstanding (DSO) Inventory Turnover Ratio Accounts Payable Turnover Ratio Components of Working Capital Management Receivables Management: Ensuring timely collection and minimizing bad debts. Inventory Management: Optimizing inventory levels to avoid stockouts or overstocking. Payables Management: Strategically managing payment terms to suppliers without hurting supplier relationships. Cash Management: Planning and forecasting cash inflows and outflows to ensure liquidity at all times. Importance of Working Capital Management Ensures liquidity and solvency. Improves creditworthiness and financial flexibility. Enhances profitability by reducing unnecessary financial costs. Helps avoid over-reliance on external financing. Relevant Study Reference: A study by Smith & Begemann (1997) highlighted that firms with efficient working capital management report higher profitability and liquidity, especially in the manufacturing sector. Objectives of Working Capital Management Maintain adequate cash flow. Optimize current assets and liabilities. Minimize cost of capital. Support smooth operations and growth. Types of Working Capital Management Working capital can broadly be classified based on duration, purpose, and variability. Permanent (Fixed) Working Capital This refers to the minimum amount of working capital that a business needs to maintain its day-to-day operations at any given time. It is not affected by fluctuations in sales or production levels. Examples: Regular inventory levels, cash for utilities, salaries, etc.Objective: Ensure uninterrupted business operations. Temporary (Variable) Working Capital This is the additional working capital required to meet seasonal or special demand fluctuations. Examples: Extra inventory during festive seasons, funds for promotional activities.Objective: Manage short-term spikes in demand or production. Gross Working Capital It represents the total investment in a company's current assets, regardless of liabilities. Formula: Gross Working Capital = Total Current AssetsFocus: Managing assets like cash, inventory, and receivables effectively. Net Working Capital Net working capital is the difference between current assets and current liabilities. Formula: Net Working Capital = Current Assets – Current LiabilitiesFocus: Ensuring liquidity to meet short-term obligations. There are some other types too that are often overlookedRegular Working CapitalReserve Working CapitalSeasonal Working CapitalSpecial Working Capital Type Based On Purpose Permanent Working Capital Duration Day-to-day operations Temporary Working Capital Duration Seasonal/Unexpected demands Gross Working Capital Accounting Total current assets management Net Working Capital Accounting Liquidity management (Assets - Liabilities) Regular Working Capital Need Routine business needs Reserve Working Capital Need Emergencies/Contingency Seasonal Working Capital Need Manage seasonal fluctuations Special Working Capital Need Special projects or expansions Effective Approach Towards Working Capital Management To maintain financial health and operational efficiency, businesses need a proactive, data-driven, and strategic approach towards working capital management. Here’s how companies can build an effective working capital management strategy: Accurate Cash Flow Forecasting • Regularly prepare and update cash flow forecasts.• Use realistic sales projections, taking into account payment cycles and seasonal trends.• Monitor upcoming obligations like loan repayments, supplier dues, and payroll. Efficient Receivables Management • Implement strict credit control policies.• Offer discounts for early payments to encourage faster collections.• Use invoice financing or factoring if receivables are blocking liquidity. Optimized Payables Management • Negotiate better payment terms with suppliers without straining relationships.• Avoid paying too early unless there are incentives like cash discounts.• Monitor payables aging reports regularly. Inventory Control and Just-In-Time (JIT) Practices • Adopt inventory optimization tools to balance stock levels.• Avoid overstocking by using JIT or lean inventory management techniques.• Conduct regular stock audits to eliminate dead stock. Technology Adoption & Automation • Use ERP systems, AI-powered cash flow tools, and accounting software for real-time visibility and automation.• Automate billing, collections, and payment processing. Use of Working Capital Financing Products • Leverage short-term working capital loans, overdraft facilities, lines of credit, or invoice discounting to manage temporary cash gaps.• Avoid over-reliance on expensive short-term loans by planning ahead. Build a Cash Reserve • Maintain a contingency fund or reserve working capital for unexpected shocks like economic downturns, sudden demand surges, or supply chain disruptions. Regular Monitoring & Reporting • Track working capital ratios, DSO, DPO, and inventory turnover regularly.• Conduct quarterly or monthly working capital reviews.• Involve cross-functional teams (finance, procurement, sales) in working capital planning. Expert Tip: Businesses that integrate working capital management into their overall strategic and financial planning outperform those who treat it as a routine task. Studies by Ernst & Young and PwC indicate that companies that actively manage working capital can unlock up to 5-7% of additional cash flow, improving profitability and growth prospects. Working Capital Management Examples • A retail store reducing its inventory holding period to free up cash.• A service provider negotiating early payments from clients to improve cash flow.• A manufacturing company extending payables terms without hurting supplier relationships. FAQs What is the need of working capital management? Efficient working capital management ensures liquidity, prevents operational disruptions, and supports business growth by balancing incoming and outgoing cash flows. What problems and issues can be faced in working capital management? • Poor cash flow management.• Over-investment in inventory.• Inefficient receivables collection.• Supplier disputes due to delayed payments.• Over-reliance on short-term debt. What are the benefits of working capital management? • Enhances liquidity and solvency.• Reduces financing costs.• Improves profitability.• Strengthens supplier and customer relationships. Explain the scope of working capital management. The scope includes managing all aspects of short-term finance like cash management, credit management, inventory control, and accounts payable/receivable, ensuring smooth day-to-day operations and financial stability. What are the principles of working capital management? Conservation of liquidity Optimal utilization of resources Maintaining profitability without compromising liquidity Balance between risk and return What Factors Affect Working Capital Management? Business cycle phase Seasonal demand Credit terms with suppliers and customers Operational efficiency Industry norms What Factors Influence Working Capital Management? Company size and scale. Product lifecycle. Financial policies. Supply chain dynamics.

08-11-2023

Guide

Modern Business Funding Options you Should Consider in India

In today’s fast-paced business world, securing the right funding is crucial for the growth and success of a business. In India, numerous funding options are available to entrepreneurs and small business owners, ranging from traditional bank loans to innovative crowdfunding platforms. Understanding the different funding options can help you make informed decisions and secure the right funding for your business. [B-01] Here are some modern business funding options you should consider in India: Bank Loans: Bank loans are a traditional funding option for businesses in India. Banks offer various types of loans, including working capital, term, and equipment financing, to help businesses finance their operations and growth. The eligibility criteria for bank loans can vary depending on the type of loan and the lender but typically include a good credit score, a solid business plan, and a steady income. Venture Capital: Venture capital is a type of investment made by venture capital firms in startups or early-stage companies that show significant growth potential. Venture capital firms typically invest in exchange for equity in the business and may also provide mentorship and support to help the business grow. Angel Investing: Angel investing is similar to venture capital but typically involves individual investors rather than firms. Angel investors are typically wealthy individuals who invest their own money in startups or early-stage companies. Angel investments can provide a significant source of funding, mentorship, and support to help businesses grow. Crowdfunding: Crowdfunding is a modern funding option that allows businesses to raise funds from a large number of people, usually through online platforms. Crowdfunding can be a useful way for businesses to test their ideas, generate early-stage funding, and build a community of supporters. Government Grants: Government grants are a type of funding the government provides to help businesses grow and create jobs. The government offers various grants and subsidies in India to support small businesses and entrepreneurs, including the MSME (Micro, Small, and Medium Enterprises) Scheme. Invoice Financing: Invoice financing is a type of financing that allows businesses to receive funds based on their outstanding invoices. This type of financing can be useful for businesses that need cash flow to finance their operations, as they can receive funds before their customers pay their invoices. [B-02] In conclusion, numerous funding options are available to businesses in India, ranging from traditional bank loans to innovative crowdfunding platforms. By understanding the different funding options and carefully considering your business needs and goals, you can secure the right funding to help your business grow and succeed.

08-11-2023

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What you need to know about Financing a Business Acquisition In India

Acquiring a business can be a lucrative and strategic move for entrepreneurs and investors in India. Still, it can also be a complex and challenging process, particularly when financing the transaction. There are several factors that potential buyers need to consider when financing a business acquisition in India, including the type of financing, the terms of the loan, the due diligence process, and the negotiation of the purchase agreement. [B-01] Here are some key things that potential buyers need to know about financing a business acquisition in India: Type of financing: There are several types of financing available for business acquisitions in India, including bank loans, private equity, and venture capital. Each financing type has its pros and cons, and potential buyers should carefully consider their options and choose the financing that best fits their needs and goals. Terms of the loan: The terms of the loan are also critical, as they can significantly impact the overall cost and viability of the acquisition. Potential buyers should carefully review the interest rate, repayment period, and any prepayment or penalty clauses, among other things. Due diligence process: Due diligence is an important step in the business acquisition process. It allows potential buyers to thoroughly review and assess the financial and operational aspects of the business they are considering acquiring. Potential buyers should engage a professional and experienced due diligence firm to help them conduct a thorough and comprehensive review. Negotiating the purchase agreement: The purchase agreement is the legal document that outlines the terms and conditions of the acquisition. Potential buyers should work with their legal advisors to negotiate the purchase agreement and ensure that it reflects their interests and goals. Consider the post-acquisition plan: Potential buyers should also have a clear post-acquisition plan in place, which outlines their plans for integrating the acquired business into their existing operations, managing any potential cultural and organizational challenges, and ensuring a smooth transition for employees and customers. [B-02] In conclusion, financing a business acquisition in India can be a complex and challenging process. Still, by carefully considering the type of financing, the terms of the business loan, the due diligence process, and the negotiation of the purchase agreement, potential buyers can position themselves for success and achieve their goals. By working with experienced professionals and carefully planning their acquisition strategy, potential buyers can minimize their risks and maximize their opportunities in the dynamic business landscape of India.

08-11-2023

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What is Debt Consolidation Loan: Everything you need to know

Debt consolidation is a financial strategy that involves taking out a single loan to pay off multiple debts, typically to reduce monthly payments, lower interest rates, or simplify debt repayment. Debt consolidation loans are a popular way for people to consolidate their debts, as they offer several benefits over traditional debt repayment methods. [B-01] Here is everything you need to know about debt consolidation loans: How it works: A debt consolidation loan takes out a single loan to pay off multiple debts. The loan amount equals the total amount of all the outstanding debts. The new loan usually has a lower interest rate than the combined interest rates on individual debts, which can reduce the monthly payments and total interest paid over the life of the loan. Types of debt that can be consolidated: Debt consolidation loans can be used to consolidate various types of debt, including credit card debt, medical debt, personal loans, and other unsecured debts. However, debt consolidation loans are typically not used to consolidate secured debts, such as mortgages or car loans, as these debts are backed by collateral. Eligibility criteria: To be eligible for a debt consolidation loan, you typically need to have a good credit score and a steady income. The lender will also consider factors such as your debt-to-income ratio, employment history, and other financial information to determine your eligibility for a loan. Benefits: There are several benefits to consolidating debt with a loan, including lower monthly payments, reduced interest rates, and simplified debt repayment. Debt consolidation loans can also help you improve your credit score, as making timely payments on a single loan can demonstrate that you are a responsible borrower. Risks: While debt consolidation loans can offer several benefits, they also come with some risks. For example, if you take out a loan with a longer repayment period, you may end up paying more in interest over the life of the loan. Additionally, if you use a debt consolidation loan to pay off credit card debt, you may be tempted to continue using your credit cards, which could lead to further debt. How to choose a lender: When choosing a lender for your debt consolidation loan, it’s important to compare the interest rates, fees, and terms different lenders offer. You should also consider the reputation and customer service of the lender, as well as the lender’s requirements for loan approval. [B-02] In conclusion, debt consolidation loans can be useful for managing debt and improving your financial situation. By understanding the benefits and risks of debt consolidation loans, carefully considering your options, and choosing the right lender, you can make an informed decision about whether a debt consolidation loan is right for you.

08-11-2023

How To?

How to Qualify for a Start-up Business line of Credit in India?

Starting a new business can be an exciting and challenging experience, and one of the key considerations for many entrepreneurs is securing adequate funding to support their operations. A line of credit is a flexible and convenient financing option for start-ups in India, allowing them to draw funds as needed and pay only for what they use. [B-01] However, securing a line of credit can be a challenge for start-ups, especially in India, where the lending environment can be competitive, and requirements can be stringent. Here are some tips to help start-ups in India qualify for a business line of credit easily: Develop a solid business plan: A well-written and comprehensive business plan is essential for securing a line of credit. It should clearly outline the business objectives, target market, competitive landscape, and financial projections, among other things. The business plan should also demonstrate the viability of the business and its ability to repay the business loan. Maintain a strong credit score: A strong credit score is a key factor in qualifying for a line of credit. Start-ups should regularly pay bills and credit card balances on time to maintain a good credit score. They can also check their credit reports for any errors or inaccuracies and take steps to address them. Establish a good track record: Lenders are more likely to extend a line of credit to start-ups that have been in business for a while and have a proven track record of success. Start-ups should focus on building a strong customer base, generating consistent revenue, and maintaining profitability to establish a good track record. Show adequate collateral: Collateral is a key factor in securing a line of credit, as it provides lenders with security in the event of default. Start-ups can use assets such as equipment, inventory, or real estate as collateral to secure a line of credit. Build a network of support: Networking and building relationships with business owners, industry experts, and potential lenders can be beneficial for start-ups looking to secure a line of credit. They can also consider seeking advice from business mentors and financial advisors to help them navigate the lending process. Consider alternative lending options: While traditional banks are a popular source of funding for start-ups, other alternative lending options are also available. For example, start-ups can consider peer-to-peer lending, crowdfunding, or government-sponsored loan programs, among other options. [B-02] In conclusion, securing a line of credit is crucial for start-ups in India, as it provides them with the financial flexibility they need to support their operations and grow their business. Start-ups can increase their chances of qualifying for a line of credit by developing a solid business plan, maintaining a strong credit score, establishing a good track record, showing adequate collateral, building a support network, and considering alternative lending options. By taking these steps, start-ups can position themselves for success and secure the funding they need to grow and succeed in the competitive business landscape of India.

08-11-2023

Guide

Complete guide on How to make a down payment for your home loan in India

A down payment is an initial payment made when purchasing a home, usually a percentage of the total home value. Making a down payment on your home loan in India can have several benefits, such as reducing the amount of money you borrow, lowering your monthly mortgage payments, and helping you build equity in your new home. If you plan to make a down payment on your home loan in India, this guide will help you understand the process and what you need to know. [B-01] Eligibility Criteria for Home Loan Down Payment in India Before you make a down payment on your home loan in India, you must ensure you meet the eligibility criteria set by the lender. Some of the standard eligibility criteria include the following: Age: You should be at least 21 years of age and not older than 60 years at the time of loan maturity. Income: You should have a steady income and a good credit history to be eligible for a home loan. Lenders generally require a minimum income of Rs. 25,000 per month for salaried individuals and Rs. 2 lakhs per annum for self-employed individuals. Residency: You should be a resident of India and have valid proof of address. Credit Score: A good credit score of 750 or above is usually required to be eligible for a home loan. A low credit score may result in higher interest rates or loan application rejection. Documents Required for Home Loan Down Payment in India To make a down payment on your home loan in India, you need to provide the lender with the following documents: Identity Proof: A passport, PAN card, voter’s ID card, or Aadhaar card. Address Proof: A passport, utility bill, rent agreement, or Aadhaar card. Income Proof: Salary slips for the last 3 months, bank statement for the last 6 months, Form 16 for the last 2 years, or proof of business income for self-employed individuals. Signature Proof: A signed passport or PAN card. Other documents: Some lenders may also require a copy of your property papers, if you have any, as additional collateral. Step-by-Step Guide to Making a Down Payment on Your Home Loan in India Determine the down payment amount: Before you make a down payment on your home loan, determine the amount you want to pay upfront. Typically, lenders require a down payment of at least 10% of the home value, but the amount can vary depending on the lender and the loan terms. Check your eligibility: Make sure you meet the lender’s eligibility criteria and gather all the required documents. Compare interest rates and terms: Compare the interest rates and terms offered by various lenders to find the best loan option for your needs. Fill out the loan application form: Fill out the loan application form provided by the lender, either online or in person. Ensure to provide accurate information to avoid delays in the loan processing. Submit the required documents: Submit the required documents along with the loan application form. Wait for loan approval: The lender will review your loan application and determine your eligibility for the loan. Depending on the lender, this process can take anywhere from a few hours to a few days. Sign the loan agreement: If your loan application is approved, you will be required to sign the loan agreement and provide any additional information or documents requested by the lender. Make the down payment: Once the loan agreement [B-02]

08-11-2023

How To?

How to get Funding for your small Business in India

Starting a small business in India requires careful planning, hard work, and, most importantly, funding. Without adequate financial resources, it can be difficult for a small business to get off the ground, grow, and become successful. In this blog, we’ll explore the various options for small businesses in India to secure funding and take their business to the next level. [B-01] Self-Funding: Self-funding is using personal savings or the profits from the business to fund its growth. This is a common option for small businesses that are just starting out, as it eliminates the need for external funding and gives the business owner complete control over their finances. However, it can also limit the available funding and put the business owner’s personal finances at risk. Crowdfunding: Crowdfunding is a process of raising funds from a large number of people, usually through the internet. In India, platforms like Milaap, Ketto, and ImpactGuru provide a platform for small businesses to raise funds from the public. Crowdfunding is a great option for businesses that are looking to raise a small amount of capital and have a large network of supporters. Government Schemes: The Government of India offers various schemes and loans to support the growth of small businesses. These include the Pradhan Mantri Mudra Yojana, which provides loans of up to Rs 10 lakhs to small businesses, and the Stand-Up India Scheme, which provides loans to women, SC/ST, and OBC entrepreneurs. Bank Loans: Bank loans are a popular option for small businesses in India to secure funding. Banks such as SBI, HDFC Bank, and ICICI Bank offer various loan options for small businesses, including term loans, working capital loans, and equipment loans. To be eligible for a business loan, businesses typically need to provide financial statements, a business plan, and collateral. Angel Investors and Venture Capital: Angel investors and venture capital firms are individuals or organizations that invest in startups and small businesses in exchange for an ownership stake. This type of funding is ideal for businesses that are looking to raise a large amount of capital and have a proven business model. Business Incubators and Accelerators: Business incubators and accelerators are organizations that provide support and resources to help small businesses grow. They typically provide mentorship, office space, network access, and funding opportunities. Business Grants: Business grants are funds that are provided to businesses without the need for repayment. Various organizations in India offer business grants, including the National Small Industries Corporation (NSIC), the Ministry of Micro, Small, and Medium Enterprises (MSME), and the Department of Science and Technology (DST). [B-02] In conclusion, securing funding for a small business in India can be challenging, but it can be done with the right approach and understanding of the options available. Small businesses can consider self-funding, crowdfunding, government schemes, bank loans, angel investors and venture capital, business incubators and accelerators, and business grants to secure the funding they need to grow and succeed. It’s important to understand the requirements and conditions for each funding option and seek professional advice when necessary.

08-11-2023

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How much personal loan can I get on your Salary in India?

A personal loan is an unsecured loan that individuals can avail of to meet their financial needs without having to provide any collateral. In India, personal loans are offered by various banks and financial institutions, and the loan amount you can get depends on multiple factors, including your salary. In this article, we will discuss how much personal loan you can get on your salary in India. [B-01] What are the Factors that Determine the Loan Amount? Income: Your income is one of the most critical factors that determine the loan amount you can get on a personal loan. Most banks and financial institutions require you to have a minimum income of INR 25,000 per month to be eligible for a personal loan. Credit Score: Your credit score reflects your creditworthiness and financial stability. A good credit score increases your chances of getting a higher loan amount, while a poor credit score may limit the amount you can get. Employment: The lender also considers your employment status and job stability when deciding the loan amount. Most lenders prefer to lend to individuals who are employed in a stable job with a consistent income stream. Repayment History: Your repayment history, including any previous loans, credit card payments, and other financial obligations, is also considered by the lender. A good repayment history increases your chances of getting a higher loan amount. Age: Your age is also a factor that is considered by the lender when deciding the loan amount. Most lenders prefer to lend to individuals between 25 and 60 years old, as this age group is considered to have a higher probability of loan repayment. What is the Average Personal Loan Amount? The average personal loan amount in India varies from lender to lender but typically ranges from INR 50,000 to INR 25 lakhs. However, the loan amount you can get depends on your specific financial situation and the abovementioned factors. How to Get the Maximum Loan Amount? Improve Your Credit Score: Your credit score plays a significant role in determining the loan amount you can get on a personal loan. You can improve your credit score by making timely payments on your credit card bills and other financial obligations. Provide Collateral: If you need a higher loan amount, you can consider providing collateral to secure the loan. This can be in the form of a fixed deposit, property, or any other asset that is acceptable to the lender. Provide a Guarantor: If you are unable to provide collateral, you can consider providing a guarantor to secure the loan. A guarantor is a person who takes the responsibility of repaying the loan in case you are unable to do so. [B-02] In conclusion, the loan amount that you can get on a personal loan in India depends on various factors, including your salary, credit score, employment status, repayment history, and age. To get the maximum loan amount, you can consider improving your credit score, providing collateral or a guarantor, and having a stable income stream. It is important to compare different personal loan options and choose a lender that offers a loan amount that meets your financial needs and repayment capacity.

08-11-2023