Day: July 26, 2019

Everyone wants to be the smartest person around – at least when it is concerning their wealth and financial matters. The definition of smartness can be different for everyone. Some people want to be smart enough to be able to invest in highest-paying options, while others want to be smart enough to know which is the safest option with high returns. In investments, a smart person knows his risk appetite and looks for options accordingly. He does not go beyond the riskiness levels he knows he can bear. If he cannot afford to lose a penny, he should be smart enough to not fall for promises of high and quick returns or stock tips.

How do smart people invest?

The markets will eventually tell you where you stand in your financial acumen. However, a smart person can always be the one who knows how to balance returns with safety and security. Blindly investing in mutual; funds and equity and few insurance plans without assessing if you really require is not the smart way to go. Follow these steps to understand if you are a smart investor-

• You are aware of your risk appetite – This is determined by your age, number of working years left, income levels, number of dependents, money expenses and liabilities. These factors will give you an idea if you can invest in an option which can earn you high returns- as mostly high returns mean high risks.

• Do your own research – Most people are too busy or too overwhelmed to do their own research when picking an investment option. Be a smart investor and do not just go by popular gimmicks. Chances are you have missed out an investment option which is safe as well as high paying in returns.

• Explore fixed-income investments – While people chase equity, they forget to utilize various features in fixed income options. Returns in fixed income instruments are determined by interest rate levels. Some require more time than others to show returns. However, a high return investment easily available for you is Company Fixed Deposits. These are FDs by credible companies which are rated by famous rating agencies to assess their payback quality. You can easily earn 1-2% higher interest rates than bank FDs and gain high returns along with safety.

Company Fixed Deposits and Interest Rates

Company fixed deposits earn the highest interest rates in the market. Credible and well-known companies like Bajaj Finance pay from 8.60% for a 5-year tenor whereas you would earn at the most 7.75% with a bank. If you are a smart investor, you will explore these quickly. There are various other features with a Bajaj Finance FD –

• The credibility of payment – Bajaj Finance is a subsidiary of the Bajaj Group known for its credibility and trust. It has maintained this trust with a remarkable rating of MAAA (stable) rating from ICRA and FAAA/Stable from CRISIL. These should tell any smart investor that this is a good investment.

• High ROI – Return on Investment is measured by dividing interest earned by initial capital. Bajaj Finance easily provides an ROI of 51% in a short duration of 5 years. A smart investor will understand that is far more stable and credible than volatility based investments in equity and mutual funds. You as a senior citizen can earn 8.95% in these Fds.

• Other features matter as well – A smart investor has usually gone through many investment options before understanding the real pros and cons of each. He understands that ease of investing is essential.

1. Bajaj Finance provides an online investment facility along with an online FD calculator to know your exact maturity amount on your chosen tenor.
2. You can easily avail a loan up to 75% of the maturity amount when in dire need of immediate cash.

High FD interest rates with Bajaj Finance will aid your financial goals and using this you can be a smart investor without falling in the traps of financial agents.

Also Read: How To Make More Money With Just Rs. 5 Lakhs?

The 21^st-century India is all about women empowerment. It is a good time for women to redefine gender stereotypes and make their dreams come true. The Indian Government has further promoted this move towards empowerment by launching special subsidy schemes, such as the Stand Up India, a Scheme for prospective SC/ST/women entrepreneurs. It came into effect on April 16, 2016.

Here are some features of this scheme, which makes it an ideal launching pad for women entrepreneurs.

1. Ready availability of capital

Before the launch of the scheme, most women could not secure the necessary funds to start their business. According to a survey published by the Global Entrepreneurship and Development Institute, 73% of prospective women could not initiate their companies in India as potential investors rejected their claims.

With limited sources of business finance, women entrepreneurs failed to create an impact in India. However, this new scheme is one of the great sources of financing for women for any Greenfield project. Loan amounts range between Rs. 10 Lakh to Rs. 1 Crore.

2. Finance for start-ups

Apart from financing new businesses, the Stand Up India Scheme offers financial assistance for companies that are still considered as start-ups. With this scheme, women can opt for refinancing through the Small Industries Development Bank of India. The refinancing option aids struggling businesses to remain solvent.

3. Quantum of loan

The money lent will cover 75% of the composite cost for your project. Therefore, if you need Rs. 20 Lakh to start a business, the loan received under the scheme will cover Rs. 15 Lakh of the total cost. However, to ensure 75% cover of the entire project, you must ensure that the funding from your side or other schemes does not exceed 25% of the total cost.

4. Rate of interest

Stand Up India scheme ensures a business loans for women most at attractive interest rates. The rate of interest for the loan will be the lowest rate offered by that particular NBFC on its business loan products. Additionally, the interest charged should not exceed the total of the tenor premium plus 3% and Marginal Cost to Fund based Lending Rate or MCLR.

5. Flexible tenor

Women entrepreneurs availing loans under this scheme can rest easy knowing they can choose an appropriate loan tenor as per their repayment ability. You can repay such loans within 7 years. You can pick a moratorium period up to 18 months for a loan under this scheme.

The Indian Government has set this scheme up in such a manner that each branch of the NBFCs and other Scheduled Commercial Banks in the country must sanction at least two such Stand Up India loans.

Stand Up India eligibility

Now that you know the various benefits of opting for a business loan under Stand Up India, here are some of the requirements you must match to benefit from this scheme.

• You must be over 18 years of age
• Your business must be a Greenfield project. Greenfield projects are entirely new businesses that do not involve remodelling or restructuring of an older organisation.
• 51% of the stakeholder in a non-individual company must be held by women for the business to be eligible for availing loans under this scheme.
• You should not have a history of default at the time of loan application.

If you are looking for sources of business finance to scale your dream venture and meet all of the requirements mentioned above, apply for the loan today. This scheme is one of the best ways to arrange business loans for women.