Finance

Financial obligations can arise anytime, and you might not have the required cash to meet those obligations.

You might want to consider selling your assets or investments to meet those needs during those times. However, selling assets is not the solution. The perfect solution to your problem is an instant loan.

Instant loans by EarlySalary are an excellent way to get the desired cash, quickly and easily.

These loans are designed to provide you with the funding instantly without spending your precious time on paperwork or waiting for approval. They’re perfect for when you need an Rs. 1 lakh personal loan quickly and don’t want to go through the hassle of applying for a traditional loan.

Instant loans have become quite a popular choice among young adults too.

These adults are tech-savvy and want everything on their tips; thus, an instant loan suits their requirements.

Features of an Instant Loan

Features of an instant loan may vary from lender to lender. Some of the standard features are:

• 1 lakh personal loan is typically processed quickly, and you can often get the money you need in as little as 10 minutes.
• These are excellent for emergency use for medical issues or paying off expensive loans
• Further, you can get an instant loan with minimal documentation. Additionally, the interest rate charged on instant loans is very low, making them a more affordable option in the long run. It also has no pre-payment charges.

You can get an instant loan at an interest rate of 1.5%-2.5% per month.

• The loan amount can be used for any purpose, such as higher education, wedding, business expansion, house renovation, travel etc.
• The repayment facility is very flexible, and the loan can be paid at the borrower’s convenience. The loan amount can also be availed for just a few months.
• EarlySalary also provides a personal loan EMI calculator to calculate the monthly cost on your loan, which will depend on the interest rate. It will help in analysing your expenditure for the month.

Steps to Avail an Instant Loan

Getting an Rs. 1 lakh personal loan is very easy, and individuals will not be required to go through a lot of paperwork or wait for the approval.

The steps to avail of an instant loan are:

1. Use the app or verify your number on the website.
2. Once you have registered, click on apply for a loan.
3. Fill out important information about yourself
4. After filing the details, you will get instant approval.
5. Further, upload your KYC and a few more documents.
6. Post KYC you can transfer the required amount. The amount will be transferred within 10 minutes.

Eligibility for an Instant Loan

To get an instant loan, the following eligibility requirements have to be met:

• An individual must be a resident Indian.
• They should be of the age of 21 years to 55 years.
• They should have a minimum salary of Rs. 15,000 per month in non-metro cities and Rs. 18,000 per month in metro cities.

Further, the documents required are:

• A selfie
• Proof of identity: Aadhar card/Pan card/Passport/driver’s license
• Proof of address: A rental agreement/Utility bills/passport
• Proof of income: Approximately three to six months of Bank statements and salary stubs

Conclusion

Instant loans can be a great solution in a hurry. However, it is vital to understand all the implications of this decision before taking the plunge.

It is essential to know the interest rates and fees. Be sure you’re comfortable with the repayment schedule before you commit. Check whether there are any penalties for early repayment, make sure you borrow from a reputable lender, etc.

Also, read the terms and conditions of the instant loan carefully to make sure you understand what you are signing up for and to make an intelligent decision for your financial future.

Further, it is also crucial that you assess your repaying capabilities and the need for a personal loan.

Taking the time to consider all these points can help you avoid any unpleasant surprises down the road.

To get more information on instant personal loans, Visit EarlySalary

If you are about to take the plunge and purchase your first home, it is important that you arm yourself with as much information as possible. One of the most common questions asked by those looking for their dream homes is: “How much can I afford?”

While lenders may be able to offer a rough estimate, there are many other factors that determine what you can afford. Among them is the type of mortgage that you choose and whether your monthly income, debts and credit rating will allow for an approval.

There are some basic types of mortgages, including fixed-rate mortgages and variable interest-only mortgages, but the type of mortgage you choose will depend on your monthly income, what you want to purchase, your credit score and how much money you are prepared to spend each month.

Here we will take a look at some of the most popular mortgages for first-time buyers.

First-time buyer mortgages

First time buyer mortgages are designed for those who have never shared ownership of a property. It is possible to purchase your first home with another person, in which case you will need to take out a joint mortgage; but this article is concerned with funding 100 percent of the purchase price.

The most common type of first-time buyer mortgage is a traditional mortgage. This will require that you pay back the money over an agreed period of time (this period can vary, but 30 years is the most common) and at the end of which you should own your home outright. Monthly payments with a traditional mortgage are often higher than those for other types, but they make it easier to budget and there are no hidden surprises.

You will usually be required to put down a deposit when taking out your first-time buyer mortgage (typically between 10 and 20 percent) which the lender will keep in an account until you pay off part of the loan or until you have lived in your home for several years. The percentage you are required to pay initially will depend on the type of mortgage you take out. For example, if you opt for a traditional mortgage your deposit will be between 10 and 20 percent, but if you select an interest-only deal, it will typically be between 25 and 50 percent.

It is possible to go back to your lender at any time during the loan period to take out an additional mortgage on your home, if needed. This may be necessary if you need to borrow money for home improvements or pay for your children’s education. You are likely to have to pay back these advances along with the original mortgage when the term expires. However, many lenders allow you to repay this extra borrowing over a longer period of time at a lower rate of interest.

With traditional mortgages your monthly payments are fixed, but if you select an interest-only or an adjustable-rate mortgage, they will typically rise over the course of the agreement. This can be beneficial if you leave your loan open, as you won’t have to worry about the monthly repayments increasing, but you will also need to save money for your deposit and think about what you want to do at the end of the term.

Interest-only mortgages and adjustable-rate mortgages offer you more flexibility than fixed-rate mortgages, as they often have lower monthly payments initially. Many first-time buyer borrowers choose this option, particularly if they are unsure whether they will have enough money to afford fixed-rate mortgage payments. At the end of the term, you may be required to repay some or all of your borrowing, but some lenders allow you to extend the mortgage without going back through the application process.

Before ultimately making your decision, you’ll want to be sure you consider the pros and cons of each type of mortgage, and compare rates from different lenders.

Stock Trading demands dedicated time and capital, especially if you are a professional trader. The timely availability of capital is also crucial for trading success. Therefore, traders utilize the margin trade funding (MTF) provided by their stockbrokers. The margin facility is a leverage provided to traders to magnify their positions in the quest for higher profits.

In Margin Funding, investors can buy shares by giving a marginal amount of the actual value of the shares. The investor can pay the margin money to the broker either in cash or by collateralising his/her demat securities.

While availing of the margin trading facility, investors need to understand the additional terms and conditions, ensuring that they are aware of the risk and rewards.

To opt for the MTF you need to open a demat account first.

SEBI and the Exchange pre define the securities that are allowed under MTF.

Six Key features of MTF for Investors

Some of the key features of margin funding in delivery trades are:

• If traders do not have enough money, they could lose a good investment opportunity to earn profits. With MTF, they can buy the desired stocks and make profits even if they don’t have the full transaction amount.
• MTF also allows you to amplify your investment capacity, which will help you to take more positions with the same available cash as against simple delivery orders.
• If you take a margin trade, brokers allow you to repay the remaining amount of the transaction within a specific number of days, as in case of Bajaj Financial Securities Trading Account, client can carry position for up to 365 days. If your stocks appreciate in value and you want to exit the position, you can square off the position to take the profit and pay the interest to the broker for the duration over which the MTF order was open.
• SEBI allows traders to pledge their existing demat shares as collateral to pay margins to the broker. Thus, you can utilize your demat shares to make further profits.
• Since a trader needs to pay a part of total transaction value, margin trading funding helps an investor increase their return rates, provided the trade goes as expected.
• The Securities and Exchange Board of India (SEBI), and stock exchanges monitor the margin trading funding services provided by the stockbroker.

Recently, the capital market regulator SEBI has revised the margin requirements to protect the interest of traders. The equity margin rules have been revised to limit risk by restricting brokerages from providing excessive leverage. The idea is to protect retail investors from unsolicited risks.

Under the recently adopted peak margin policy, SEBI has increased the upfront margin requirements to 100%. It has been done to prevent large-scale speculative trading practices that may result in huge losses.

Special Brokerage Packages for Traders

It is important to choose a broker who gives adequate facilities for margin trading to their clients.

Subscription packages with leading stockbrokers like Bajaj Financial Securities Ltd (BFSL) enable you to avail margin facility at a lower interest rate.

One of its special trading packages is the Bajaj Privilege Club (BPC). It is a premium membership for Demat & Trading Account holders of BFSL, which extends a wide range of offerings for those who aspire to stay on top of the market.

MTF at a low-interest rate improves the margin of profits if your trade is aligned with the market trends.

• BFSL MTF interest rate for BPC subscribers is as low as 8.5% per annum (one of the lowest in the industry) with an economical brokerage rate of Rs.5 per order across equity cash and derivative segment. .
• BFSL clients who are BPC subscribers also enjoy a long-term carry forward term. They can carry forward a margin trade for 365 days.

MTF Risk Considerations

Even though Margin Trading Funding has many benefits, an investor should understand its risks also.

An investor could lose more than he bargained for. It is the case when the market trends do not support your trade.

Not only this, the investor will have to maintain a minimum balance in their MFT account. If you do not meet the minimum balance requirements, the stockbroker can force you to square-off the trade position or sell your securities without your consent.

Therefore, before using the MFT facility, traders must analyse both positive and negative aspect of this facility. To get the benefits of low margin interest rate and low brokerage, open demat account online with Bajaj Financial Securities Limited today.

Investing in mutual funds is catching on more and more these days due to several reasons. To make the best of your mutual fund investment, it’s necessary to know one of the most crucial aspects of investing in any asset or security – taxation.

One of the reasons for the immense popularity of mutual funds includes the various tax-saving provisions, depending on which type you invest in. Here, we will discuss how these different types of mutual funds are taxed so that you can devise your investment strategy accordingly. After all, the way each instrument in your portfolio is taxed can significantly impact your overall cash flow.

How mutual funds’ returns are classified

The taxation scheme on your mutual funds will depend on the form of returns you are earning. There are two common forms of returns: dividends and capital gains.

The company distributes dividends to their fund holders out of the profits they earn or when there is surplus cash. Your dividends will be paid out such that they are proportional to the number of fund units you hold.

Capital gains are as simple as the selling price of your securities surpassing the purchase price. This happens as a result of market fluctuations.

How mutual funds’ dividends are taxed

According to the Union Budget 2020, dividends are considered a part of your income and taxed as per the applicable income tax slab. Fund houses are obligated to pay a dividend distribution tax (DDT) on the dividends they declare at the end of a financial year.

As of 2021, equity schemes that allocate 65% or a greater part of the investment capital in equities and equity-related securities have to pay 10% DDT in addition to a 12% surcharge and 4% cess. This brings the total effective DDT to 11.64% for every investor.

How mutual funds’ capital gains are taxed

The profits you earn by selling off your mutual fund units are known as capital gains. Taxation on these gains depends on whether you have invested in equity or non-equity schemes, as well as how long your investment tenure before selling is. Equity investments held for less than one year are called ‘short-term capital gains’ (STCG) and taxed at 15%, whereas those held for more than a year are called ‘long-term capital gains’ (LTCG) and taxed at 20% if the total returns in a year exceed Rs. 1 lakh.

However, if you invest in non-equity instruments like debt mutual funds or others, taxation differs. In this case, holdings with a tenure of 3 years or less are deemed STCG and taxed at 20%. Those held for over 3 years are deemed LTCG and taxed at the highest tax slab that applies to your annual income.

Bear in mind that some equity-oriented mutual funds provide you with tax exemptions up to Rs. 1.5 lakhs, thanks to Section 80C of the Income Tax Act of 1961. For example, ELSS mutual funds.

Conclusion

If you plan to start investing in mutual funds, you can download the Tata Capital Moneyfy App, compare the performance and ratings of different funds, and take another step towards fulfilling your financial goals.

Savings are highly essential for your financial health and overall growth. If you have adequate funds in your online savings account to meet any kind of financial emergencies, you are on the right track. The current situation has highlighted the need to save for a rainy day. So, let’s look at some easy things you can do to maximise your savings. 

Set Saving Goals

The most important step in your journey to build a kitty of funds is to identify goals for which you will need the money in the future. The goals could be buying a car to setting aside funds for medical emergencies or go on a holiday or have a fund base for the bad times. You should have more than six months of income in your savings account for the tough times. Once you identify a goal, you have the motivation to save. 

Open a Savings Account and Automate Your Savings

If you find it difficult to remember that you have to save, you have the option of automating your savings. Open a savings account and go in for NEFT and other options that allow the automatic transfer of a specified amount from your salary account to your saving account. You can even increase the amount of savings with the increase in your earnings. 

Review Your Expenses Regularly

One of the best options to boost your savings is to review your expenses regularly. You can even do a cost-benefit analysis of the expenses. This will help you weed out the unnecessary ones or reduce their percentage and allow you to put more funds in your high-interest savings account. One way of reducing expenses is to go for yearly subscriptions instead of monthly options for your cable tv or phone recharges. Similarly, shop at stores that offer discounts on the MRP thereby allowing you to save on your monthly grocery and other shopping. 

Save Extra Earnings

Another way to maximise your savings is to keep aside any extra income or cash windfalls in the form of tax refunds, any bonuses, or rewards that you may receive. This will boost your savings and secure your future better. 

Use Credit Cards

The judicious use of credit cards can help you manage your finances well without emptying your savings. Plan your expenses in such a way that you can use the interest-free funds offered by credit cards. This will also help you get some good discounts and cashback that will aid in boosting your overall savings from ondemandly.com. 

Begin Investing

Once you have reached a specific level, you can invest the spare funds in mutual funds or other investments that offer reasonable growth. This will help you be better prepared for achieving long-term goals like your child’s education, marriage or buying a house.

The process of building up your savings cannot happen overnight. You need to start at the earliest by opening a savings account and slowly enhance your contributions to this account. The next step is to start investing and earn some good returns for long-term financial security.