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Every small business needs a certain amount of capital to take their company into newer avenues of business. This leap can be facilitated by an SME loan from a reputed organisation. SMEs are the engine of the economy of India and are responsible for fuelling growth, innovation and prosperity in the country. However there is still a huge demand and supply gap in this sector that is plagued by challenges such as:

•        Non availability of timely and affordable credit

•        Inadequate capital infusion

•        Restricted access to organized finance

•        Delayed payments from large corporate bodies

To bridge this gap, the government of India is focusing on promoting the SME sector and eliminating above challenges, says the March 2015 report at Money Control.

How is a SME Loan in India Beneficial for Small to Medium Enterprises?

Here are 3 reasons a SME loan is a great way to boost your business in India.

•        Multiple Loan Options: There are several banks in India who offers such a loan. Even more are the various schemes and options offered to woo the entrepreneurs who are planning to diversify their business. As a result, the extent of multiple loan options is widespread in India. There are options such as term loans, standard business loans, business instalment, and long-term loans to choose from for SME's. The earnings for the bank come from the interest they charge upon these loans and the loan may be up to 80% of the value of the property.

•        Non-Profit Sharing: Angel investors and venture capitalists provide a loan in exchange for part ownership, the right influence to decision-making and a share of the profits. None of this may be present in taking a loan from a bank leaving you and your business partners as the sole owners of the business. The bank, after sanctioning a loan, is only interested in getting their interest and payment instalments, giving complete operational autonomy to the entrepreneurs.

•        Low Interests and Tax Benefits: Instruments such as credit cards and other leading agencies provide financial aid to SMEs at a much higher interest rate of interest as compared to the same offered by banks. Moreover in taking a SME loan from a bank, you will enjoy some relief from paying heavy taxes. This is because the percentage of your company's profits that is used to repay the loan is exempt from tax.

More and more NRIs are parking their funds in Indian banks for a variety of purposes. While most wish to send money for expenses to loved ones in India, several NRIs are actively choosing to keep their earnings in India in local savings bank accounts. These accounts are known as ‘NRO (Non Resident Ordinary) accounts’ that help NRIs deposit their Indian earnings into local banks.

NRIs can earn income in India by way of property rent, dividends from debt and equity market investments, salary from Indian companies or another source. These earnings in Indian rupees can be conveniently deposited in an NRO account.

Why an NRO account

What it is: An NRO account is a savings or current account in an Indian bank that manages NRIs’ income earned in India from various sources. The account can be managed by the NRI from wherever he or she is located in the world.

Assessing the need: An NRI may take an NRE account if he or she needs to repatriate more than $1 million in a financial year. However, if he or she merely needs to keep Indian earnings in India, an NRO account is better.

Depositing funds: The NRI has the option of depositing foreign currency in the NRO account, which is converted into Indian rupees as per the prevalent exchange rate. However, all earnings in India must necessarily be deposited into the NRO account only; these cannot be deposited in an NRE account. Also, all withdrawals are made in Indian rupees only.

Transferring funds: It is possible to transfer funds between two NRO accounts, and an NRI may open an NRO account with a resident Indian.

Using existing accounts: Most banks allow the option of converting their existing savings or current accounts into NRO accounts when the NRI becomes a resident of another country.

Minimum balance: Most Indian banks insist on a minimum balance of Rs 10,000 in the NRO account at all times. They also offer a savings interest rate of up to 4%.

Taxation: Deposits in NRO accounts are not tax free: they attract wealth tax, income tax and gift tax. However, they can get reduced tax benefit under the Double Taxation Avoidance Agreement.

Exchange rates: Since the NRO account is managed in Indian rupees, it is not subject to fluctuations in exchange rates.

Annuity plans in India offer a secure pension system to even those who were not state employees during their years of service. In 2012, 21 products were filed with the IRDA for approval, suggesting growth in this form of investment. Annuity is a contractual agreement between the bank and the annuitant on the basis of a lump sum amount that the annuitant pays up-front. He/she is then entitled to payment at regular intervals, which may start as early as the month after the purchase (referred to as immediate annuity) or on a predetermined pay-out date. This income is guaranteed through the life of the annuitant and offers him/her the security of a guaranteed payment monthly, quarterly, half yearly or yearly, as he/she chooses. Some annuity plans in India also offer insurance riders, such as Accidental Death Benefit, which assures the nominee a lump sum, usually 12 times the annual pay-out, after which the contract ends.

Benefits of Investing in an Annuity Plan

Regular income guaranteed: The certainty of receiving a fixed amount at a fixed interval allows for relative peace of mind and for one to plan around it. In case of an immediate annuity plan, one is assured of the payment as soon as the purchase is made and the contract is in place, so they can enjoy the security immediately. One may also invest in an annuity plan that gives ab annual increase in income at a predetermined rate as well.

Age flexibility: One can avail annuity as early as forty years of age, irrespective of whether s/he is still employed and salaried. On the other hand, a person may avail an annuity plan up to the age of 80, allowing them to plan even belatedly for their own security for as long as they may live.

Option to secure self and others: The annuity policy may extend to include a spouse, children, parents and parents in law or siblings. One may choose to protect a person with a pension plan, irrespective of whether they are salaried. There may be plans that are valid up to the point of life cover to the last survivor of the contract, or there may be some in which there is a capital refund to a nominee upon the death of the last survivor.

Flexibility of pay-outs: Not only does the annuitant get to choose the interval of the payment, whether monthly, quarterly, half yearly or yearly, if need be he/she may also ask for an advance on payment. This ensures the liquidity of cash at all times, as well as a protected measure for the future.

Zero balance saving accounts is ideal for individuals who cannot maintain a monthly or quarterly balance that is benchmarked by the bank. Thus, for such people banks offer zero balance accounts with many benefits.

What are the Features of a zero balance saving account?

As instituted by financial institutions and banks, a zero balance saving accounts has several features that work like a savings account, but with no minimum balance maintenance criteria involved.

Zero Balance: No compelling reason to keep up an altered, required sum in your account.

Welcome Kit: You get a welcome kit during account opening comprising of your account     number, cheque card, plastic PIN, web PIN and TPIN numbers.

Universal Debit Card: It gives you access to more than thousands of ATMs all over the country, empowering you to make accounts or withdraw money anytime.

Telephone Banking and Internet Banking: You can use the phone or the internet to access your account and make transactions at any time from any place for no additional charge.

Free month to month e-articulation.

No base balance necessity.

It allows four withdrawals in a month trough all channels, including ATM withdrawals

Essential saving money administrations and cheque books given

The Pradhan-Mantri-Jan-Dhan-Yojana zero balance saving account:

It is a Zero Balance Saving accounts, which is a Basic Savings Bank Deposit account

Free Debit Card

Free Passbook

No restriction on the quantity of accounts in a month

All fundamental saving money administrations and cheque books accessible free of expense

Four withdrawals in a month

The account works well for normal needs like withdrawal, payments, and so on.

The government introduced this new type of savings account as an initiative to guarantee access to monetary administrations. These are Banking or Savings & Deposit Accounts, Pension, Credit, Remittance, Insurance, but with moderate features.

You can open the account in any bank office or Business Correspondent outlet. PMJDY accounts are being opened with Zero offset.

Exceptional Benefits under PMJDY Scheme

Interest on the account.

Inadvertent protection front of INR1 lac.

No base balance needed.

The disaster protection front of INR30000.

Simple Cash Transfer across India.

Recipients of Government Schemes will get Direct Benefit Transfer in these accounts.

After palatable operation of the account for six months, an overdraft office will be allowed

Access to Pension, protection items.

Inadvertent Insurance Cover, RuPay Debit Card must be utilized in any event once as a part of forty-five days.

Overdraft of up to INR5000 is accessible for family-unit accounts, especially if the account holder is a woman.

Author Bio:

Outward remittance in India is done fundamentally through banks. If you choose to do an outward settlement, you ought to guarantee that you are dealing with honest individuals and firms. It is because you can't believe any individual or a financial firm for sending your cash. You have to choose a bank that has a global presence and is well reputed.

How does outward remittance work?

Once you have chosen a bank to do the outward remittance for you then you choose your method of exchange. One option is to get a Demand Draft. In this situation, the recipient does not oblige an account with the same bank. Another option is to send the cash using wire exchange or Swift exchange that alludes to the wire exchange through Society for Worldwide Interbank Financial Telecommunications. It is a protected and institutionalized framework that permits the banks to compare with one another. The charges of the wire exchange are higher when contrasted with the FCCD, be that as it may it is quick and exchange should be possible within twenty-four hours.

You are obliged to finish and present a settlement appeal structure where you can specify the points of interest like a measure of cash and the wellspring of cash. You additionally need to fill Form A2 and may require a declaration from a sanctioned accountant. Prior to the exchange, the client learns about the Forex rate, and you need to check it with the Forex rate of the bank. RBI does not permit the settlements for alternate purposes like betting and others. You need to be read about the guidelines and regulations identified with the settlements of the nation before sending the settlement.

What do Outward Money Transfers include?

Outward Remittance offices empower you to transmit cash abroad in a snappy and secure way. The broad system issues you a scope to transfer to and receive money from most parts of the world.

Wire Transfer through Internet Banking:

The Bank offers Outward Remittance through Internet Banking in more than hundred coinages across nations.

Favorable circumstances:

   • Get aggressive trade rates

   • Evade double change charges

   • Know the accurate sum that the recipient will get in their account

   • Appreciate speedier & stress-free settlements

Foreign Currency Demand Drafts:

The Bank gives you the office of Demand Draft in remote monetary forms for making installments abroad for different purposes including college charges, medicinal expenses, relocating to different nations and so forth. The recipient receives a Demand Draft.

Author Bio:

An NRI account can be a convenient system for individuals who are partly in India and partly abroad and have managing account needs on both sides of the sea.

What is the key advantage of an NRI Bank account?

NRI account allows you to manage an account for nearby and remote needs. With it you can have a fast exchange of trusts and trade of monetary forms.

What makes NRI Bank account beneficial for Indians staying overseas?

The NRI account is efficient. It gives simple access to your accounts. You don't have to rush to a Union bank or call a companion amidst the night for some help. 

Many of us settled overseas are terrified of managing an account. In such a case, this is one of the best approaches to differentiate investment funds or financial balances.

NRI ledger permits capacity to look at the premium rate and acquiring potential in the middle of the home and abroad.

Coin Hedge helps in minimizing the danger of money rate vacillations.

Pointers to open a NRI Bank Account

Here are the main steps to open an NRI Account:

NRI status: The NRI status is essential for account application, particularly in the event that you have been out of India just for a brief time as a guest. For subtle elements, allude to the regularly made inquiries on the official site of Indian Government. The site additionally covers data for a man of Indian Origin (PIO) and the capabilities for the account.

Bank Determination: Based on individual or topographical inclinations, pick a bank that is a good fit for you. Many banks offer a lot of data online also. Verify that the bank works under all regulatory policies of the Reserve Bank of India (RBI) for NRI A/Cs.

Type: There is a lot of information about filling the application and to choose what kind of account you ought to open in light of your money related circumstance and the nation you live in. RBI also has some data on its site under Highlights of different Deposit Schemes accessible to Non-Resident Indians.

Account Application: Most of the banks provide information about how to fill an application. The banks likewise give the rundown of reports or IDs needed to finish the application. Premium rate and other data on money saving guidelines are accessible from the bank and on their sites. Profit on the NRI Bank account may be liable to wage assessment so ensure that you check this with the bank and your nation of living arrangements.

Foreign remittance is beneficial for the economy of the country. The advancement group needs to see how to oversee best settlement streams. They need to look at how to reinforce the assortment of examination on remittances, both with the end goal of comprehension the effect of it and for framing more powerful approach for overseeing it.

What is a foreign remittance?

A "foreign remittance" is an exchange of cash from a vagrant specialist to their families or different people in their nations of origin. In numerous nations, settlement constitutes a huge part of the GDP. The United States is the main wellspring of remote settlements, trailed by Russia and Saudi Arabia. The top beneficiaries are India, China, and the Philippines. So much cash is being transmitted, and top Banks are endeavoring to screen and direct settlement costs.

As indicated by social researchers, since it’s so far-reaching, the remittance has suggestions that amplify past individual money. Case in point, since dispatching includes money related organizations; individuals who send and get settlement are prone to have ledgers, which advance financial advancement. Remittances can be life-saving in crises, for example, characteristic calamities and outfitted clashes, when the beneficiaries' different methods of receiving money vanish.

What are the two kinds of foreign remittances or settlements?

There are two types of foreign remittances – outward remittance and inward remittance. Outward Remittance: It is applicable for the sending nation, where the paid worker is based. The sender utilizes a bank or remote trade organization to send cash overseas to the designated nation. A large portion of the accepting banks has built up settlement associations with money houses and banks in different nations to improve the stream of settlements into the nation.

Inward Remittance: it is applicable for the nation that receives the money. The bank gets the cash sent from the sending individual in the nation in which the cash is.

How can remittance be helpful?

Sending foreign remittance to or from India to an account of your family works out well. It is helpful to a wide workplace system and saves money with several banks around the world.

You can send or get cash if you are an occupant enlisted as clients of the Retail Internet Banking office. You should have exchange rights and kept up the bank A/C for a base time of a year before the remittance request. You can send or get overseas remittance utilizing Demand Draft or Wire Transfers.

nA debit card is a convenient way of paying for any purchases or withdrawing cash without making the effort of going to the bank. It is also called plastic money. How do debit cards work? A debit card works in two ways: • Like an ATM card for quick withdrawals of money. • Like a cheque while shopping. The cash used to pay for the exchange is deducted from your record in a day or two depending upon when the retailer introduces the exchange for installment. What are the card’s Focal points? A debit card is simple to acquire. When you open an account, most organizations issue this card upon solicitation. That aside, here are its benefits. • Cash Management and Control: Debit exchanges are deducted specifically from the financial records and recorded in one place on a monthly basis. With this cardholders can track where the money is being spent. It also encourages better spending methods. • Security: They offer preferable insurances over money or cheques, and Zero Liability implies purchasers pay nothing for fake buys.

• Acknowledgment: They work well at many locations around the world, via telephone and on the Internet. When traveling these cards can be used at most places.

• Comfort: It gives you the convenience to shop or withdraw cash without worrying about going to the bank. It can be used 24 hours of the day. Purchases can be made by swiping the card as opposed to rounding out a paper cheque.

• Rewarding: Most of these cards offer compensations. Items procured could be for travel, stocks or even foreign currency exchange. Few Guidelines to keep in mind

• Watch your debit card against burglary. Keep it in a safe place like money, Visa, MasterCard or cheques. • In case you lose it, inform your bank at the soonest. • Pick a PIN number that is easy to remember. It is prescribed not to use your telephone number or birthday. • Remember your PIN number and never write it on anything that you keep on you. • Keep receipts of all transactions as a record. • Survey your statements quickly and explore any obscure exchanges.

Property Prices showed a compound annual growth rate of 10.5 % between the first quarter of 2010-11 and third quarter of 2014-15, according to the Reserve Bank of India’s (RBI) All-India Residential Property Price Index.  With property prices on the rise, the amount of loan that you can take against your property will also rise. Mortgage loans are easier to get, are for a longer tenure than personal loans, with attractive interest rates and flexible payment options. But these shouldn’t be reasons enough for to you to put your property at stake.

Factors Determining Mortgage Loans

Before you decide to mortgage your property for a loan, you must gain proper knowledge about every aspect of the loan be it the loan amount, tenure, interest rate, EMI, or your repayment abilities. The loan eligibility calculator takes into account the various factors affecting the mortgage loan.

1. Valuation of the Property – The value of the property determines the loan amount to be extended. The value is determined by the criteria set by the loan provider. 2. Loan amount – Loan amount in case of loans against property may go up to 80 per cent of the property value depending on the bank’s policy. 3. Income – Your income source and the total income determines your repayment ability thereby affecting the loan amount that the lending company would be willing to churn out. 4. Credit History and Existing Liabilities – Your credit history such as the loan you have taken and the repayments as well as your existing liabilities are taken into account by the loan against property calculator. 5. Number of Dependents – Number of people depending on your monthly income also affects the loan amount.

Loans against property are given against both commercial and residential property, property given on rent or lease, commercial purchase loan against property to be acquired as well as construction finance to real estate agents against receivables and the property being constructed.

Buying a home is every person’s dream. However, rising land costs and spiralling residential rates are making this dream an illusion for most people. It is virtually impossible for a majority of Indians to purchase a home today out of their salaries or business income. Hence, taking a home loan is the only option for most people.

However, there are certain factors you must be aware of before you apply for home loans. We have compiled a list of these factors and their implications to the home loans process:

- Are you eligible? The eligibility of the applicant is based on his or her monthly income and repayment capacity. Home loan eligibility can be calculated by using an online calculator or one provided by the bank or lending institution. This calculation helps one arrive at an estimate of how much loan amount one can get, and how much EMI will be payable at a certain interest rate. Normally, those with a regular salary will be better candidates than those with irregular business income.

- Which type of interest do you prefer? Most applicants are unaware that they can choose the interest type for the home loans. Home loan interest rates in India are charged as per two types: Fixed and Floating. Under the ‘fixed’ rate, the interest is unchanged despite market fluctuations. In the ‘floating’ type, the rate of interest varies as per change in the market conditions. This has a bearing on the EMIs payable. Experts advise that a floating rate of interest is more beneficial than a fixed one.

- You can negotiate the interest rate: Though most banks and financial institutions will not bargain with the customer about the interest rate, there is still a window for negotiation. Customers can argue their case supported by a clean credit history rating and a long relationship with the institution.

- It is possible to transfer the loan to another lender: Taking a loan from a bank or financial institution does not make it mandatory that the loan must be brought to term with the same organisation. In case another institution offers a better rate of interest, it is possible to transfer the loan to it. This process is easier with home loans taken at floating rate of interest.

Home buyers have been motivated to purchase new properties in 2015, owing to the declining borrowing cost, improving employment outlook and availability of affordable housing project, says a survey as published in an Economic Times article in July 2015. Homeowners can take this opportunity to renovate their homes. A house is a lifetime investment that one makes and it comes with a maintenance cost. You might be able to pay these maintenance bills by yourself, but sometimes, when these bills exceed your financial capabilities, a little credit help does the job.

Features of Home Improvement Loans

Home improvement or home renovation loan is one such loan that is taken to renovate the house. It includes the renovation of existing structures, as well as newly built or purchased houses.

Painting, flooring, tiling, exterior and interior waterproofing, woodwork, electrical work, all come under the umbrella of home improvement loans. But these loans do not finance furniture buys or the addition of kitchen cabinets. Any homeowner undertaking renovation work can apply for a home improvement loan. If you apply for a home improvement loan when you have taken an existing home loan from the same company, it increases your chances of approval. Even the paperwork in such cases is less. Some important points to note include:

Banks usually cover up to 80% of the renovation cost. You might get a lower cap sanctioned if you have other loans that you are repaying. In such a case, lending companies or banks take into account your lower monthly payment capacity.

High property value will fetch a lower percentage of loan amounts.

Banks do not give loans on property older than 35 years.

Banks usually limit the loans to two times the gross annual income for salaried individuals and three times the net annual income for professionals.

Documents Required to Procure the Loan

For a home improvement loan you need property documents, a rough estimate of the renovation work, a duly filled KYC form, bank statements, and sometimes even a legal permit from the housing society or Municipal Corporation to carry out renovation. A physical verification of the site to establish legal ownership and to assess the renovation work needed can be undertaken by the lending company.

Lending rates are normally lower with NBFCs, leading to greater saving and more options for buyers.

Buying one’s own property, whether a commercial or residential one, is a dream for many. However, in times of rising real estate costs all over the country, this dream is hardly able to translate into reality for so many people. It is now virtually impossible to buy any property, big or small, anywhere in the country without having to take a loan.

Deciding to take a loan is only the start of many things to come – actually undergoing the process of loan application, acceptance and finally repayment – is the tough part. People are (justifiably) sceptical of the high interest rates charged on property loans by both banks and NBFCs (Non Banking Finance Companies). Also, deciding which loan product to take and from which bank or NBFC is another decision altogether. However, if one must choose between the two, it is advisable to always go with an NBFC loan. This is especially true if you do not want to spend too much out of your own pocket every month.

Why NBFC loans are better

NBFCs give loans for buying both homes and commercial office spaces, with the same diligence and checks applied to the applicant as banks do. However, the bigger factor in favour of NBFC loans is that they give higher funding than banks do. This is how it works: Banks in India are regulated by the Reserve Bank of India (RBI) and hence, they are permitted by the RBI to lend only up to 80 per cent of the property’s total sale value. No other component is affixed to this loan amount. In contrast to this, the NBFCs also include the stamp duty and registration expenses while calculating the final loan amount. In cities where the stamp duty and registration are at 5 per cent and above, this amount works out to be a sizeable number.

This simply means that an NBFC loan will be about 5 to 6 per cent higher than a corresponding loan from the bank. Naturally, this is advantageous to the customer.

Factors to take into account

However, one must also consider that the higher the loan amount disbursed, the higher will be the monthly EMI paid by the customer. Always compare the monthly EMI to be paid in both cases – bank loan and NBFC loan – and subtract the difference. If you think that the difference is only about Rs 2,000 to Rs 3,000 per month for an NBFC loan as compared to a bank loan, you might consider the loan tenure as well. If you are taking a loan for 15 years, multiple Rs 3,000 with 15. The sum of Rs 4,50,000 is your total extra payment on an NBFC loan.

The Birla Sun Life MNC Fund is an open-ended growth scheme managed with the objective of achieving growth of capital at relatively modest levels of risk, by investing in the securities of multi-national companies selected through a rigorous and continuous process of research. The fund is suitable for those seeking long-term capital growth and those preferring investments in the securities of multi-national companies. Since the fund invests in equity investments, it should be used for long-term wealth creation. Young couples may choose to invest in the fund for the purpose of securing their children’s education or building a fund for their marriage.

Key Features

The Birla Sun Life MNC fund has been in operation since 27th December, 1999.

The fund has been managed by Mr. Ajay Garg since 18th June, 2009.

The minimum initial investment is Rs 5,000 (plus in multiples of 1).

The minimum additional investment is Rs 1,000 (plus in multiples of 1).

The minimum amount for a Systematic Investment Plan (SIP) is Rs 1,000. A SIP is a method of investing regularly in a mutual fund. The most common method is to invest a certain fixed amount every month. Using a SIP allows investors to have a disciplined approach to investing, allows for rupee-cost averaging (averaging out the cost per unit of the mutual fund over time) and removes the need to time the market.

There is no entry load, ie your entire investment is used to purchase units of the fund, and there are no administration charges payable by you.

If you exit before one year from the date of allotment, you pay an exit load of 1%; after a year, there is no exit load.

Advantages

 The Birla Sun Life MNC Fund provides the advantage of long-term wealth creation through diversified investments in the securities of multi-national companies. The companies whose securities are in the portfolio come from a variety of sectors. They are chosen based on careful research and study, and the portfolio is revised as and when appropriate.

The MNC Fund is benchmarked against the CNX MNC Index. Over the past five years, the fund has given a compound annual growth rate (CAGR) of 33.65%, while the CNX MNC Index has given a return of 21.66%. The fund thus enables investors to beat future inflation, a key requirement of long-term capital creation.