4 things to consider before applying for a new business loan

Starting your own business is a matter of pride and accomplishment. Initiating something from the ground up and building it into something big takes a lot of effort, time and hard work. Adding to that, being your own boss also is one of the best parts! However, in order to start your own business, you will need a lot of capital and that is where a business loan comes in to play. A business loan will give you that much-needed financial kick-start and will help propel you in the exciting world of entrepreneurship. Nevertheless, you must keep a few pointers in mind before applying for a business loan and they are-

• Business plan- You will have to come up with a business plan because your lenders will want to know, whether you are running a reliable and trustworthy business or not. They will also study and judge you on your skills and knowledge, and whether you will be able to take your business in the right direction or not. That is why it is important to create a business plan, which includes everything such as competitors, goals, market analysis, past and projected expenses and revenues and how you intend to turn your company into a massively profitable one. Show your lender that you are the best person to whom they can give their money. Your business plan is the first thing they will go through, so make sure that you make it worth their time.

• Compile financial statements- A company can only be a successful one if it makes a substantial amount of profits. When you choose to apply for business loan, your lender will also focus on your potential profits because without that, you will not be able to pay them back. Create a financial plan and include your balance statements for the past 3-5 years, cash flow statements, estimates for the next 3-5 years and income statements. Additionally, also take into consideration how you will utilize your lender’s money and the seasonal changes in the business.


• Mention the amount and purpose of your loan- Once you have convinced your lender and shown him your financial statements and business plans, inform him about how you are planning to utilize his business loan and how much you will need to fulfil your goals. Be very transparent when it comes to your needs and intentions. Let them know what kind of marketing equipment you will need, your marketing strategy, what you will purchase with the loan and other relevant things. Do a lot of research when it comes to the things you will need and show it to your lender so that he takes you seriously.

• Take into consideration what the loan will cost you- Remember to compare a few lenders before saying yes to one. It is going to be you, who have to repay the loan, so apply for business loan, which will give you a very good offer such as proper interest rates, estimates, and a handsome loan offer. Remember to add up all your payments and double-check whether you will be able to fulfil the loan or not. Lastly, go through all the terms and conditions before signing on the dotted line.

A business loan is a necessary tool for starting your own business; without one, it can be quite difficult to start. Make sure that you have all the important information at hand before coming to a final decision; otherwise, you might end up repenting and suffering losses.

4 benefits of international travel insurance

Going on an international trip or vacation is something we all have on our bucket list. Additionally, a vacation can go a long way in making you feel relaxed and expose you to many new things in this world. However, emergencies do not announce themselves before showing up. Therefore, when you are travelling, you might come across some problems or obstacles, which may threaten to ruin your trip. In order to avoid a situation like that, you can purchase an international travel insurance that will safeguard you against potential problems you might face. Read on to know about the benefits of international travel insurance-

• Baggage insurance- International travel insurance will ensure that you do not have to face any trouble during the entire trip. Simple problems such as loss or misplacement of baggage and arrival delay will also be included in your insurance coverage. For instance, in case of theft or loss of baggage, you will have to buy a couple of things and pay for them from your own pocket. However, if you have an international travel insurance plan you can ask for a repayment or reimbursement from your insurance provider.

• Medical coverage- Your international travel insurance plan can also provide you with medical coverage, in case you run into any emergencies while travelling abroad. It will pay for your hospitalization expenses and as far as the doctor’s fees are concerned, you can ask for a reimbursement from your insurance provider. However, have a very clear idea about all the inclusions and exclusions before making a claim; otherwise, your claims might end up being rejected.


• Trip interruption or cancellation- Flight cancellations and flight delays are something that is entirely out of your control. If your chosen airline decides to cancel your flight unexpectedly, there is very little you can do about it. However, what you can do is use your international travel insurance plan to ask for a reimbursement of your flight tickets. Flight cancellations can cause a huge dent in your pocket, but if you have international travel insurance, you will have nothing to worry about.

• Comprehensiveness- An international travel insurance plan is very comprehensive in nature and covers numerous things under the domain of international travel. Baggage loss, stolen passport or other travel documents, flight delays, flight cancellations, emergency evacuation based on medical grounds etc. are just some of the things an international travel insurance plan would normally cover. That is why a majority of travellers considers an insurance plan of this nature.

Travelling is supposed to be peaceful and rejuvenating and running into trouble should be the last thing on your mind. People travel because they want to deviate themselves from all the daily chaos and problems of their lives. Since emergencies are something you cannot always control, having an international travel insurance plan is the best thing you can do for yourself and your family when travelling.

5 reasons why your health insurance claim is being rejected

In case you have a health insurance plan, you can rest easy as your policy will be paying all your medical bills and expenses. Having a health insurance policy is considered an incredibly important part of health care. However, if your insurance claim is rejected, it might come as a shock to you and your finances may take a direct hit because of that. In order to avoid such a situation, it is imperative that you know and understand why your health insurance claim might be rejected-

• Delay in filing claims- Every health insurance provider has a specific time period within which you will have to make your insurance claim. In case of emergency hospitalization, you will have to inform your insurer about it within 24 hours, if you wish to avail your policy benefits. However, in case of planned hospitalization, you will have to notify your insurer days or weeks in advance. If you fail to do so, your health insurance claim will be rejected.

• Your policy has expired- If you forget to renew your policy when the time comes, you will not be able to avail its benefits. It is only when you renew it on a routine basis and pay your premiums on time that you will be able to file an insurance claim and get your money.


• Your ailment is not included in your policy- Every health insurance plan has its own set of inclusions and exclusions so make sure that you go through the lists thoroughly before you sign on the dotted line. If the disease or ailment, for which you have been hospitalized, is not included in your health insurance plan, then your claim will be rejected. Some of the conditions, which a health insurance plan does not cover in general, are a suicidal attempt, drug use, alcohol abuse, self-harm wounds or injuries, injuries caused due to radioactive substances etc.

• Incorrect information- When you purchase a health insurance plan, it is mandatory to fill out a proposal form and submit it along with your premium. It is important to fill out your form with accurate information, as your insurer will provide you with the policy based on what you have written in your form. If you choose to provide incorrect and vague information, your insurance provider has every right to reject it, if they deem fit.


• Failure to submit all necessary medical documents- When you file for a health insurance claim, your insurance provider might ask you to provide medical records, in case your claim needs extra documentation to determine its authenticity. Some of the medical documents or records that your insurance provider might ask for are patient’s physical reports, patient’s discharge summaries, operative reports, radiology reports, physician consultation reports, and patient’s medical history. If you fail to submit what your insurer asks of you, your claim might be rejected.

Claim rejection can cause you a lot of stress and unnecessary hassles, which is something you would naturally not want to experience. Therefore, before you finalize your health insurance plan, read it thoroughly to avoid any problems in the future.

Steps to open a current bank account

Having a bank account has become nothing short of a necessity these days. With India gradually marching towards the ‘digital’ and cashless era, bank accounts have become a staple in every household. Moreover, in many homes, there is not just one bank account but also multiple. The presence of bank accounts help you save money and makes sure that your money is in a safe place; having a ton of cash in your drawer is not really a safe thing to do. However, before you open a bank account you will need to understand how to do so. Read on to understand the process of opening a current account.

1. Determine what kind of an account you will need- Before you open current account, you will have to decide what kind of an account you want to open. If you are looking to keep money in your account to pay your bills in the short-term or pay for your daily requirements daily, then go for a cheque account. However, if you are planning to save money but want it to be accessible to you at all times, then go for a savings account.

2. Seek a current account with services that you will need- Keep into consideration how you will deposit money and withdraw it. There are several options for doing this and they are-


• Debit card, which you can use for buying whatever you need from any store
• Direct debit, through which all your bills will be paid automatically every month i.e. the money will be automatically deducted from your bank account
• Bank branch, where you can deposit and withdraw your money from using an ATM
• Checks through which you can pay your bills and give money to someone when needed
• Telephone or internet banking can be done for different and various kinds of  financial transactions
• Direct deposit, is when your employer deposits your salary or pay directly into your account

3. Explore all your options in the current market- Prior to zeroing on a specific bank, make sure that you check out all the options and then go for the one with the lowest service charge and interest rates.

4. Choose a convenient bank- Make sure that you always select a bank, which has multiple branches and ATMs near you. If you go for a bank that has only one or two ATMs near you, then it will spell a lot of inconvenience for you in case of emergencies.


5. Open your bank account- When you finally go to your preferred bank to open current account, you will have to provide personal information such as name, address, identity proof (Voter card, PAN card, AADHAR card, Passport etc.), date of birth, job designation, social security number, and your personal contact number. Only after you provide all these important documents, you will be able to open a current bank account.

Earlier, having a current account was considered a luxury but with problems growing in our country and society in general, it has become very important to safeguard your money as much as possible. After all, being extra cautious is not going to harm you.

5 advantages of having a demat account

A Demat account allows investors to hold their shares in the market in an electronic form. If you are looking forward to investing in shares, then you will have to understand the concept of demat and demat accounts. Investment in securities is considered one of the best ways to grow and increase your wealth, with just a little bit of smart effort. However, if you are still feeling unsure about opening demat trading account, read here to know the benefits of one-

• Decrease in expenses- In case of securities, your demat account will not need a stamp duty, which results in a substantial amount of cost reduction. Previously, the stamp duty was 0.5% for every stock you purchase and you would have to visit the stock exchange in order to share your transfer stamps. This made the whole process a very complicated one.  Now you can avoid this charge by having demat trading account of your own.

• Risks associated with delivery- One of the best benefits of a demat account is zero delivery risks. Since there is no paperwork involved, the risk of fake shares, theft, and wrong deliveries in the electronic trading process are eliminated. This type of a system generally credits your demat account automatically, irrespective of the type and number of shares. The same process applies to other stock transactions as well, such as stock bonuses and stock splits.


• Updates are automatic- When it comes to demat accounts updates are automatic in nature. You will not have to provide your details every time you deal with a company, despite having a common account for all your securities transactions. Your demat account will have all the relevant and necessary information related to the transaction.

• The convenience of selling shares- Earlier, you could not sell an odd number of shares. This means, you could not to sell 37 shares, as it would be a difficult and inconvenient process. You could only sell shares in even numbers such as 50, 100, 150 etc. However, this practice has been modified and you can sell as many shares as you want, even a single one.


• Provision for the nomination- Contrary to earlier practices, you can now nominate other people while opening a demat account. Earlier, when there were share certificates it was compulsory to have a joint account holder. In case you are interested, talk to your financial advisor and the depository participant regarding the procedure of adding a nominee.
The biggest reason for opening demat trading account is not to just invest money but also to make money. If you have a clear idea about the whole thing and its benefits, you will know that it is the best decision you can take when it comes to investing in shares.

4 mistakes to avoid while purchasing a gold loan

India is one of the largest importers of gold in the world. As we know, gold is used for making precious jewellery, is often kept as assets. Many people consider gold a good investment option, which they can sell off anytime they want. Gold loans, on the other hand, are one of the most popular types of loans in the market today. Purchasing a gold loan is quite convenient, as it is easily accessible. However, you must remember to avoid these five mistakes while purchasing a gold loan-

• Being unaware of the right kind of gold- People in India consider gold an important asset. Moreover, it has a lot of sentiment attached to it. That is why people are more inclined towards repaying the gold loan. This will ensure that the jewellery will stay with them always, as banks tend to use gold jewellery as collateral. You cannot give gold bars or gold bullions as collateral. The only time you can use gold coins as collateral is when the gold is 99.99% pure with weight not exceeding 50 grams.

• Avoiding LTV calculation- LTV stands for Loan to Value ratio and signifies the ratio of the loan to the net worth of an asset. Generally, creditors use this to calculate the risk factors. The more is the LTV, the more will be the risk. The creditors calculate the value of your gold and based on that, they fund a loan amount of up to 75% of the total cumulative value. For example, if the cost of your gold is Rs.5 lakhs, then you can get a loan of Rs.4 lakhs.

• Not exploring more- Before you select a gold loan make sure that you go through all the options available in the market and compare them so that you go for the one that is the right fit for you. Carry out as much research as you can regarding gold loan finance, all the financial institutions and banks, and then shortlist a few potential options. In case you have a few doubts, you can also consult your financial advisor. Most importantly, remember to choose a gold loan option that will offer you a higher Loan to Value ratio or a lower interest rate.

• Failing to verify your creditor’s credibility- Since a gold loan is a secured form of a loan, you will have to protect it with collateral (for which gold is used generally). Your collateral stays with your lender or creditor until you pay off the loan. In case you default, your creditor will use your collateral to regain a part or the entire amount, owed by you. This might be a great way to secure the creditor’s money but ensure that your creditor is a genuine person so that you collateral remain in safe hands. Do some thorough researches before you trust someone, as it is your hard-earned money is on the line.

These days, there is a loan for almost everything, which makes it convenient for us to fulfil our needs and requirements. In addition, gold, being a precious metal is something that is revered and sought after by the whole country.

Steps for opening a PPF account

The Public Provident Fund scheme is immensely popular among financial advisors and investors due to its flexibility. Additionally, having a PPF account can also help you save a lot of tax, thus making it a very profitable option for many. However, in order to apply for a PPF account, you must have a very good idea about the whole process and its benefits. This will help you take the right steps while you work towards opening your own PPF account.

Steps to take for opening a Public Provident Fund account

Before you choose to open a PPF account, keep the following steps in mind:

• Step 1- A Public Provident Fund account cannot be opened at any random bank branch. You can open your account only at designated bank branches. You can access a list of all the designated bank branches on the bank’s official website.

• Step 2- In order to open a PPF account, you will have to submit the following documents:


1. Identity proof such as PAN card, Voter ID card, Drivers’ license or passport
2. Two recent passport size photographs
3. Account opening form, which will be available in your preferred bank branch
4. Address proof such as Ration card, Electricity bill or Telephone bill
5. Pay-in-slip, which can be accessed from your preferred bank branch. The pay-in-slip is necessary for transferring the money to your PPF account.

While submitting documents for opening a PPF account, remember to submit original documents to your bank for verification. Make sure that all the documents are self-attested. Once you get the green light for opening your account, you will be provided with a passbook, where all your financial transactions will be updated. Your passbook is an important document, as it will be required for claiming tax exemptions under Section 80C of The Income Tax Act.

Benefits of having a Public Provident Fund

There are numerous benefits of having a PPF account. It can help make your decision a little bit easier, in case you are wondering whether you should go for one or not. The benefits of the PPF scheme are as follows:

• Tax exemptions
• Provision of extending your account after maturity
• Compound interest
• Partial withdrawals
• You can invest as low as INR 600
• Several ways for depositing money
• Trustworthy and secure, since it is a government scheme
• Lucrative for marriages, education, retirement amongst other reasons
• Helpful for long-term investments
• Easily accessible, as the facility for opening a PPF account can be found at multiple places across the country
• The policy amount you choose can never be available for the creditors and cannot be added to any court order
• Almost all the banks in the country offer this scheme, making it very easy to open an account

Going for the PPF scheme is one of the best financial decisions you can take for yourself. Moreover, the whole procedure is a very easy and uncomplicated one. So, go ahead and open an account now.