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An unconventional Guide On Unsecured Business Loans

Posted on April 14, 2021 at 7:55 AM Comments comments (0)

Loans are a part of the business. When a business is short of funds, it usually heads towards taking a loan for the business's survival or growth. A business loan can be either secured or unsecured. A secured business loan is a loan that requires security in exchange for a loan permitted by any financial institution. So, if in case, the borrower does not repay the amount, the lender can sell that security and can get his loan amount.

While on the other side, unsecured loans do not require any security against the loan granted. There are various institutions available that provide unsecured loans in delhi or any other metropolitan city. Here are the details that one should know about unsecured business loans:

Unsecured Business Loans

Unsecured business loans are loans that are granted without any exchange of security. These kinds of loans are suitable for all those businesses who do not own any asset, or need funds quickly or do not want to offer security in exchange for the loan. Unsecured business loans possess a high risk for the lender, but many institutions provide this type of loan.

Considerations for an Unsecured Business Loan

1. Up-front cost Involved

Up-front cost is a cost paid by a borrower to the lender as an amount of consideration for making a new loan. This fee is not deductible from the loan amount. In the case of unsecured business loans, usually, the up-front cost is low. However, sometimes there is no requirement of up-front cost if you apply for an unsecured business loan.

2. Time required for the procedure

The legal process involved in the approval of the loan is more straightforward in the case of unsecured loans. The whole process is always completed quickly, and there is no need for valuations required for this kind of business loan.

3. Asset Requirement

Unsecured business loans are the most accessible type of finance available for all the business-facing difficult financial conditions. There is no asset requirement in this case.

4. Cost of Unsecured loans

As the unsecured loans are granted without any need for security, the overall cost of this loan is generally higher.

Personal Guarantee on an Unsecured Business Loan

As mentioned above, Unsecured business loans are risky for the lender, because of which a lender may ask for a personal guarantee from the company director who wants this loan. Theoretically, a personal guarantee is a promise made by a person to repay the loan amount if the business cannot repay the same. It acts as a significant commitment as the promising person becomes liable to pay the debt amount in case of non-payment by the business. In the case of unsecured loans, the director may act as a personal guarantee.

Conclusion

Many financial institutions provide https://www.finwaycapital.com/unsecured.htm" target="_blank" rel="nofollow">unsecured loans in delhi or any other metropolitan city. These loans are the safest type of loans for a business as you are not putting any collateral in exchange for it. But still, a lender reserves the right to take legal action for the non-payment of the loan.

 

Want To Start A New Business? Here's How You Can Fund It!

Posted on March 24, 2021 at 8:40 AM Comments comments (0)

Many financial institutions and banks are offering startup loans for new business. Apart from that, there are also other ways to fund business, as discussed in this article. Money is a bloodline of any business, and initial funding for a start-up is an important aspect to start a business. Funding depends on the type of business you want to start.


Various ways to Fund a Business


1. Partnership

To start a business, having a business partner could reduce the burden to a great extent. Having a strategic partner by your side could help plan, manage, and operate. But apart from that, funds could be easily secured and doubled up.


2. Investors

Businesses always start with an idea, but to attract investors for funds requires more than that. You need a detailed plan with follow-ups, strategies, and potential growth of your business to tempt them to invest them in your business plan.

There are confident investors known as angel investors. They have a high net-worth and are always on the lookout for something unique and innovative to invest their money on.


3. Business Loan

A business loan from the bank, financial institutions, and other sources are one of the easy ways to increase your funding. With the online application of loans, the process has become fast and straightforward. Business loans are sanctioned after looking at the credibility of an individual.


4. Personal Savings

When starting a business, always try to keep business and personal accounts separate for convenience. With the budding of a business idea, collection of funds to start this happens then and there. However, since it is your own business, it is required for you to invest your own hard-earned money into it.


5. Crowd funding

This is an excellent way to raise funds for your business. It requires post fundraising on social media or any website to gather as many amounts from the general public as possible. This generally requires a small sum of amount to be donated by the general public, which makes a considerable amount when summed up with a hundred others.


6. Friends and Family

Receiving funds from friends and family unconventional approach is practised frequently. Everyone loves the idea of a business, so with the proper business plan and outlook, you can convince them to give you a loan or maybe invest in your business.

 

Conclusion

Running a successful business is, no doubt, one of the hardest jobs. But what is more difficult is to start a business. Everyone has an idea which they want to see become a reality. But there are only a few who put a lot of effort to start a business with their idea. With a lot of ease to secure funding, one of them is a dsa loan agent registration. With proper research and initiatives, it becomes easy to raise funds for the business.

 

Can You Claim Tax benefits on under-construction property loans?

Posted on February 22, 2021 at 5:45 AM Comments comments (0)

Going for an under-construction property might take some time but comes with added financial advantages that can be crucial. For instance, the under-construction home loan can be beneficial, both at the time of purchase and when availing tax benefits from the government.


What does the Indian Income Tax Act have to say?


According to Section 80C of the Income Tax Act, a person who has taken a home loan for an under-construction property can opt for possible deductions on tax. The deduction is offered for a maximum of 2 lakh rupees on the year's interest payments and a maximum of 1.5 lakh rupees for the principal amount.


When is the tax benefit on loan not applicable?


There are some situations when the benefits surrounding home loans are not applicable. Here, the benefits cannot be availed if the home loan payments are made during the pre-construction phase. There are even cases where the customer has to pay nothing for the loan repayment EMI. In such situations again, the deductions of tax are not applicable.


Tax benefits that can be availed for an under-construction property


You can avail of the following tax exemptions on a home loan for an under-construction property:


Since it is known that under-construction properties cost lesser, you will need relatively low funds. As a result, the payable EMI for the loan undertaken would be comparatively lesser.


Since the EMI on loan is reasonable, the loan's monthly installments can be increased to reduce the loan tenor. It will, in turn, help in more significant reductions on the total payable interest.


Since you are availing of the home loan, you can postpone the deduction of the payable interest amount for the pre-construction phase.


When the interest amount that is to be paid before the year of completion is accumulated, one-fifths of this is allowed as the deduction every year for five years from the completion year. It can be calculated as the interest that is paid during the pre-construction phase in a total of five installments. If the property is taken before the five years are completed, the deduction can amount to a maximum of five lakhs. It proves to be one of the significant benefits when one goes for an under-construction property.


Another way for this is the coincidence where the project's time of completion coincides with the disbursement of each loan installment from the lender.


One can even opt for tax benefits on the registration fees and stamp duty regarding the property.


Conclusion


This is the complete guide that will help you understand tax benefits on the properties that are currently under construction. Anything like low credit score loans can be obtained for such properties, with monetary benefits, both in the present and in the future. Hope this was informative for you in understanding the tax benefits that can be availed for an under-construction property.

 

5 Requirements to avail of any immediate cash loan

Posted on January 15, 2021 at 6:20 AM Comments comments (0)

Immediate cash loans are loans taken for the short term. A financial product that is disbursed as a personal loan. Here the borrower is entailed to avail the same usually within a couple of hours.

The fund can be accessed from anywhere and instantly, making it amongst the most favored of loans. Immediate cash loans are flexible. The tenure of repayment can be structured between 30 to 90 days, where some extend up to 6-12 months.

The immediate loan is also termed as cash advances or payday loans that are ideal for the dire need of money. Any small-time deficit of funds can be met, be it medical emergencies to filling in expenses for unforeseen events.

Purchasing of assets to the equipment's and chalking out last-minute hassles in a wedding; immediate loans are the best bet.

These loans have been the face of changes that have engulfed banking due to the quick application procedure and faster processing that favors this multipurpose loan.

An unsecured loan that acts as a savior since worst-case scenarios see pawnbrokers making the most out of extracting high interests from the debtors. It is over and above the collaterals deposited.

Successful closure of an immediate cash loan entails one to be eligible for re-application. Instant cash loans can also be availed through multiple mobile applications.

There are five basic eligibility requirements for availing of an immediate cash loan. The same is discussed below:

Age Limit

Instant cash loans can be availed only if one is 21 years and above. It is the minimum age limit. In comparison, the maximum age limit is 58 years. It is one of the main criteria for being able to apply for a loan online.

Identity Proof

The instant cash loans also require one to furnish identity proofs. A mandatory step that is the primary deciding factor for a loan process to be guaranteed. It includes submitting either a voter ID card, driving license, or passport as a form of proof.

Address Proof

Electricity bills, phone & water bills work as utility documents validating as address proof.

Photo Proof

Instant loan reimbursement also depends on validating oneself with valid photo proof.

Being a salaried individual

A salaried individual is only allowed to apply for instant loans. Hence one should be drawing a regular salary to be able to avail the same. However, there are limitations to the basic salary withdrawn for loan approvals.

Presenting salary slips & bank statements are mandatory as a proof of salary receipts. Cash allowances do not work in this case.

Instant cash loans online are the best way of availing of fast cash when in dire need. A process that guarantees one money right at their fingertips by only following a few steps.

Zero hassles, assurance of a guaranteed loan in a few hours, and no hidden charges have let lengthy approvals become a thing of the past. Once eligibility is confirmed, the money is all yours.

4 things you should consider before getting a home loan in Delhi

Posted on June 27, 2020 at 6:20 AM Comments comments (0)

Having one’s own home is a dream that every adult has, and people work hard for hours and hours all their life to fulfil it! But getting a home in the metro cities isn’t easy. The rates are through the roof and just keep increasing. Therefore, to think that you’d someday be able to save money to buy your own home is a daydream. The only feasible way of fulfilling your dream is to apply for a home loan in Delhi. You can either go for an unsecured loan or you can take a loan against property in Delhi as well. But there are a few things that you should be wary of while applying for a loan. Let us take a quick look at those.

Always ensure you have a good credit store

Your credit score plays a major role in determining whether or not your loan application will get accepted or not. Your credit score is formulated depending upon your payment records regarding your EMIs and other dues. If you have a good credit score, it means that you are a trustworthy borrower, and your likelihood of getting the loans increases. Not only this, if you have a higher credit score, you also may also get the loans on lower interest rates.

Choose appropriate EMIs and tenure

Once you have decided on a property, you need to calculate your budget and plan for the loan. The reason for doing this is that you shouldn’t take a penny more than you need otherwise you’re going to have to return that unused money with interest. Then choose an EMI and tenure accordingly: at first, going for a shorter tenure might make sense, but you need to be very careful because if a financial crisis arises in the future, you’d be in big trouble as the EMIs are quite high for short tenure loans.

Be ready with the documents

Before you approach the lending institution to get the home loan in Delhi or any other city, you’ll need to ensure that you have a certain list of documents at your disposal. They include:

• Your income tax returns for the past 2 to 3 years to ensure that your taxes have been filed.

• A PAN card.

• An Aadhaar card.

• Bank statements for a past six to twelve months.

• If you are a salaried individual, you’ll be required to submit your salary slips for past three months as well.

• A self-attested photograph pasted on the filled application form for the loan.

Compare

Once you’ve made up your mind to take the home loan in Delhi, you need to compare the different lending institutions. There are thousands and thousands of lenders and you need to find the one that understands you the best. Consider your circumstances and then arrive at a decision. For instance, it might be possible that an NBFC might be giving you a faster disbursement and easier application as compared to a bank. Study your options and then only arrive at your decision. This would save you a lot of headache and hassle in the future and you wouldn’t have to regret your decision. Buying your own home is no small step, and as such, it shouldn’t be taken without prior deliberation.

 

3 Common Myths that you should know about before applying for a home loan in Delhi

Posted on June 27, 2020 at 6:10 AM Comments comments (0)

Getting a home loan in delhi or anywhere else is not a simple task. There are so many things that you have to keep in mind when applying for a home loan in Delhi or any other metro city of the country - after all, it's a decision that can affect your entire life. But people often make the mistake of falling into the well laid trap of myths regarding loans - whether it's about home loan, business loan, personal loan or loan against property in Delhi. This is why you need to be extra careful when applying for a home loan from a bank or an NBFC (Non-Banking Financial Company). Let us take a quick look at some of the prevailing myths regarding home loans specifically.

1) A shorter tenure is better than a longer tenure

A lot of people believe this myth and end up regretting their decision later. Even though the shorter tenure could possibly help you repay your loan faster, but keep in mind that it also has the potential to ruin your finances. A shorter tenure means higher EMIs, which means lower liquidity in your accounts. Thus, your purchasing power is significantly reduced and you also stand tye chance of becoming a defaulter if an unforeseen financial crises appears in the future. A longer term is therefore a better option as it gives you some breathing room and also keeps the option of prepayment open for you.

2) Low interest means better loan

This is one of the most common myths you can fall victim to.

There is so much hype regarding the low interest home loans that people often tend to neglect other factors. Although a low interest loan might mean smaller EMIs, it's going to be of no use to you if the amount that is being disbursed does not meet your requirements.

3) Fixed rates are better than floating rates

Before we bust this myth, let us understand what fixed and floating rates mean. Well, simply stated, fixed rates mean that you will be paying a fixed EMI throughout the tenure of the loan that you have taken, whereas floating rates mean that your EMI would vary according to the market situation. If the market is doing well, you'll have to pay lesser than the EMI originally agreed upon, but if the market worsens, then you will have to bear that loss and pay more than the agreed upon amount. It does make sense to go for fixed rates in light of this knowledge, but if you have a high risk appetite then you can go for floating rates as well. The thing is, there is no clear winner between the two. What you should go for should depend upon your personal attitude and risk appetite.

 

Online and Offline Personal Loan: which is better?

Posted on June 17, 2020 at 1:05 AM Comments comments (0)

Personal loans can see us through the times of financial crunch and help us take care of our financial problems, but when it comes to applying for personal loans, there’s always a debate between whether it is better to apply the loan application offline or online. While in the recent years, the popularity of online loan applications have grown, given the ease and accuracy they bring to the table, some people still prefer the traditional offline method because they prefer human interaction of computer forms. But whether you are taking personal loan against property or without any collateral, you must know the pros and cons of both the online and offline methods before you apply for the loan.

Application of loan

While online application can be applied at anytime from anywhere, to apply for the offline application, you’d have to visit the bank branch and wait your turn in line. Then you’ll have to manually fill the form before handing it over to the concerned person. The downside to all this is that you end up wasting a lot of hours in the process.

Getting documentation done

Applying for an online loan doesn’t require you to submit too many documents. When you apply online via a bank or a Non-Banking Financial Company (NBFC), you only have to submit the scanned copies of a few essential documents like Aadhaar Card, PAN Card, Address proof, and income proof.

But it your personal loan application for home loan in Delhi or for any other purpose is being filled by offline means, you’d have to go through a rigorous documentation process. What is cumbersome is having to carry all those documents and going to look for more in case they are asked for – not to mention you might end up losing a valuable document in the process.

Processing time

With online means, you can fill your loan application form within a few minutes and if your documents are found valid and your loan request is sensible, the loan amount is disbursed within 2 to 3 working days. In some cases, the loan can even be disbursed within 24 hours of applying – which makes online application very useful for people who are looking for a business loan in Delhi.

However, an offline application takes longer to be scrutinized as the evaluation process has to be handled manually.

The option to compare

While applying for an online personal loan, you can compare different lending institutions in terms of the tenure and interest loans they’re offering. It helps you choose the best loan from among a number of loans available online. The best thing is that it gives you a choice.

 

How to safely take loan against property?

Posted on June 17, 2020 at 12:45 AM Comments comments (0)

Having one’s own property is a great advantage in these times. The reason is that since property is a liquid asset, one can use it to meet their financial expenses. There are two ways in which the liquidity of the property can be utilized. The first one is to sell the property. But this means that property no more belongs to you and you end up losing your liquid asset. The other, much better way is to take loan against property. By taking loan against property, not only do you get to satisfy your financial needs but you also retain your property for future use. Also, you can take home loan in Delhi or business loan in Delhi against property. Since these are secured loans, you get lower interest rates and easy approval.

When you go to a lending authority, following factors are considered while disbursing loan against property.

1. The reliability of income so as to ensure that you’d be able to pay back EMIs consistently.

2. Monetary value of the property in the market.

3. It is also important to know whether a property is registered or not.

If the following conditions are satisfied, the loan amount is disbursed to the concerned person.

But merely getting the loan approved is not enough. There are some things that you need to take into consideration when you are taking loan against property. Let us take a look at some of them.

Know how much you can repay

The first thing you ought to do is get your property evaluated. Depending on that, you can get a loan worth 50% to 90% of your property’s market value. Now, you can use different EMI calculators online to calculate the best suitable EMI for you. Don’t go for too high EMIs as they might cause financial troubles later.

Go short term for tenure

Even though long-term tenure is easier on the pocket in the short run, over time you’ll end up paying a lot of extra money as interest. Therefore, if it is financially feasible for you, prefer short term over long term tenure. If your loan is flexible, you can later change the tenure according to your financial situation in the future.

Make timely instalments

Don’t become a defaulter. Not only does it make you look bad but it also means that you have to pay excess money as fine for late instalments. Put your other expenses aside, curtail your luxuries a bit, but ensure that you pay your loan on time. If you keep becoming a defaulter, you’ll end up hurting your credit score and it’ll cause you future problems if you want to avail other loans.

As a rule of thumb, read the fine print of all the documents carefully before you agree upon any contract.

 

How to make repayment of your small business loan easier?

Posted on June 17, 2020 at 12:35 AM Comments comments (0)

In this day and age, it is almost impossible to get your business to expand without taking small business loans. Not many entrepreneurs have pockets deep enough to incur the costs – especially given the fact that a lot of people from middle income groups (MIGs) are entering into the start-up sphere. These people have fantastic innovative ideas but they don’t have boatload of wealth in their lockers. Since they believe in themselves, they go for loans and end up becoming successful in their domain.

However, as important as business loan in Delhi is, you’ve got to be very careful and make sure that you pay back whatever you borrow, in time, otherwise, you’ll have a lifelong problem on your hands. Besides, if you timely repay the loan that you’ve borrowed, you’ll be swiftly eligible for bigger loans which can take your business to newer heights. Let’s take a look at some of the tips that can make your repayment process uncomplicated and hassle-free:

Be a smart borrower

Always plan before you borrow. Take every single penny into account and don’t borrow anymore than you have to. People often make this mistake and borrow more amount than they need. What happens, as a result, is that they end up paying interest on every extra penny that they’d borrowed – even though they never used that money. So the first and foremost thing is to decide what amount you need and then borrow precisely that much.

Gradually increase your EMIs every month

If you’ve taken a business loan in Delhi or anywhere else for that matter, the most responsible way of repaying it is to gradually increase your EMIs every month by a certain percentage. This allows you to completely pay off your debt within the agreed tenure. While taking the loan, you should prefer a lender that is malleable in regards to the total tenure of the loan.

Sign up for autopay

If you’re a busy person and are always juggling a million things, it’ll be better for you to sign up for autopay. By signing up for autopay, your EMIs would automatically get deducted from your debit savings account and you wouldn’t need to worry about forgetting the repayment date and becoming a defaulter. You can pick a date on which the EMI would be deducted every month.

Refinance the loan

This solution also depends upon your lender, but it is often the last case resort. Sometimes, it so happens that financial issues arise out of nowhere and it becomes cumbersome for you to pay your monthly instalments for your business loan in Delhi. In such cases, you can reach out to the lender and ask them to refinance the loan. You can try negotiating the tenure and interest rate that might help you meet the expenses and also pay back the loan. This does reduce your repayment burden but like we already said, it’ll depend upon the lender, and hence, this should be your last case resort.

 

How business loans are working towards women empowerment?

Posted on June 17, 2020 at 12:20 AM Comments comments (0)

Women empowerment has been a common theme over the last decade. With the rise of feminism all over the world, more and more women have started stepping into the business domain and are getting success. This sudden rise of women entrepreneurs has brought great diversity into the business fields and has opened new avenues for innovation. Seeing this positive change and wanting to encourage more women to actively participate in building the country’s economy many government and private banks have eased lending policies for women. There are even certain government schemes that encourage women to become entrepreneurs.

Regardless of gender, if you want to take your business forward, you’re going to have to take a business loan in Delhi or any other city where you reside in. This is where NBFCs come into play. They disburse the loan quickly and efficiently and often at lower interest rates compared to conventional banks. You can either take a loan against property or you can go for unsecured loans as well. Let’s take a look at some of the advantages women get when it comes to borrowing business loans.

Disbursement of larger loan amount: The great news for aspiring women entrepreneurs is that the maximum loan amount they can withdraw goes up to 30 lacs. With such a substantial sum of money, they can not only start their own business, but they can start their business with the latest, state-of-the-art machinery and equipment that is necessary for a modern day business to bloom.

Flexible repayment structure: Another benefit that women get in repayment that might encourage them to take the business loan in Delhi is that the lending institutions allow a longer tenure for repayment, ranging between 12 to 96 months. Also, no collateral is required for the disbursement of loans in case of women entrepreneurs.

Easy approval and quick disbursement: It has been found that for women entrepreneurs, the loans can be approved as swiftly as 24 hours from the time of application. Quick disbursement of loans is especially necessary if someone is already running a business and needs money for an immediate financial need.

Alterable loan facilities: Women these days are getting great flexibility when it comes to the repayment of loans. To encourage these aspiring entrepreneurs, all restrictions have been lifted from the amount to be withdrawn and interest is charged only on the amount withdrawn and not on the entire loan.

Easy Documentation: One of the most dreaded steps in a loan approval process is documentation. But unlike other loans, when the loan is being given to a businesswoman, the process is relatively lenient and only a couple of documents are required – as is the case with loan against property in Delhi or other metro cities in the country.

With all these advantages, women should try to enter the business milieu more and take advantage of this favourable situation. The more diversity we have in the industrial sphere, the better it is for business.