Finding a business niche is the primary and the most important step towards building and growing a successful enterprise. It gives you the opportunity to cater to the specific needs of the consumers. You can take a niche approach in terms of your area of operation, the customers you cater to, or even the platform you sell through.

Finding your business niche will allow you to give a head start to your entrepreneurial journey. Moreover, it can help you map a well defined business strategy, which, in turn, can prove to be beneficial while availing a small business loan for your startup.

Take a look at how you can find your business niche

• Explore your areas of interest and expertise. Try to come up with unique business ideas that match your passion and skillset
• Establish a business that you are passionate about. Working in the area of your interest will motivate you to achieve more.
• Work hard on your niche idea and you can instantly boost your chance of making profits.

Conduct market research

• Before you settle on a business idea and decide to go ahead with it, make sure to conduct detailed market research. It will give you a clear understanding of your target audience, your competitors within your chosen niche, the demand for supply, and the availability of business finance.
• Researching the market will also help you understand if your business idea has been explored by several other people and has lost its uniqueness. If this happens, you should consider identifying a new niche.

Study your competitors

• You should study your competitors in detail. This will help you understand how other businesses have performed in the same domain. Knowing your competitors’ proficiency and shortcomings will allow you to craft your business idea in a better way.
• You should also try to gather information regarding what percentage of the market are your competitors taping into. Then analyze your own products or services and think about whether you can offer your target audience something better than your competitors.

Calculate the profitability

• Analyze the costs attached to the products or services you are thinking to offer. This will help you understand if it a viable proposition.
• You can identify profit patterns and take the required measures to ensure success for your business.

Once you have identified your business niche, you should start working towards establishing your business. In order to establish your startup, you would require access to a substantial amount of capital. You can consider availing a small business loan for the same. With leading financial institutions, you can apply for a business loan online from the comfort of your home. Simple eligibility criteria, flexible repayment option, instant loan approval and quick disbursal of the loan amount are some of the advantages of availing a small business loan with a prominent financial institution.

While availing a small business loan, you should compare various loan offers provided to you by different financial institutions and settle for the one that best suits your needs. Moreover, it is also advisable to review the financial institution carefully opting for it. You should settle for a financial institution that offers a business loan with the most competitive interest rate. This can reduce the repayment burden and decrease the overall cost of borrowing in the long run.

Lastly, do not forget to read the terms and conditions of the loan agreement carefully before signing it. This can help you prevent any inconvenience in the later stage. So what are you waiting for? Find your business niche, avail a small business loan, and start your entrepreneurial journey today.

Life insurance is a contract between an individual and an insurance company. It protects the nominees of the insured in case of an unfortunate death. Insurance literacy in India is low due to which there is a reluctance to buy life insurance plans.

However, things are changing slowly in the country. If you are someone who has not invested in life insurance, explained ahead are the consequences of not having such an insurance plan.

1. Leaving the dependents in a financial crisis

One of the top benefits of life insurance is that it provides financial security to your loved ones when you are no longer around. If you do not have a plan, your loved ones will have no financial safety and end up in a terrible crisis.

2. Your family will be in debt

In case of an unfortunate demise of the breadwinner, the family members end in a debt trap. Certainly, this is something that you do not want for your loved ones. Any loan can be taken care of if you have invested in the right type of insurance plan. If you do not want to burden your family with your debt, a life insurance plan is essential.

3. Unprepared for huge expenses

If you want to start a business of your own or have planned to change your job, financial security is something that will stop you. Without the necessary financial back-up, it is not a good idea to leave a job. Besides a change in job, there are other milestones in life like wedding, the birth of a child, and a dream foreign trip. A suitable life insurance plan such as a money back insurance plan can help tackle these expenses with ease.

4. Your child’s future will be unsecured

As a parent, you want to send your child to a reputed school so that he/she has a bright future. The cost of education is constantly rising and if you do not plan beforehand, your child’s future will remain insecure. A life insurance plan will help your child transform his/her dreams into reality even when you are not around.

5. You will be dependent on others after retirement

Once the regular source of income stops, you will have to remain dependent on others for finances. If you buy life insurance now, you are already planning for your retirement. Choose a retirement plan to take care of all your post-retirement financial needs. In case of an unfortunate incident, your dependents will receive a death benefit.

6. Unable to save on taxes

The last reason why life insurance is important is to save taxes. Undoubtedly, you do not want to lose your money in income tax. Therefore, you need to try to save as much as possible. The amount invested in the life insurance premium is eligible for a deduction under Section 80C of the Income Tax Act, 1961. You can claim a deduction up to INR 1.5 lakh under this section.

Consider these consequences and remember to buy a life insurance plan well in time. It is not only for yourself but also for your loved ones.

Most people confuse themselves into thinking that Health Insurance and Critical Illness Insurance are similar to each other when they are not. Some people do not understand whether to buy a health insurance plan or a critical illness insurance or a combo of both.

What you don’t realize is that there’s a vast difference between the two as each one of them serves a unique requirement, here’s how.

Coverage

Coverage is offered for a range of illnesses. Health insurance also provides restoration of the sum insured, ambulance charges, domiciliary hospitalization, etc. After the waiting period is completed, even pre-existing diseases and maternity diseases would be covered. However, the number of critical illnesses covered under a policy depends on your insurance provider.

Policy Period

Usually, you avail a health insurance plan for a year and then renew it every year. But, the case isn’t similar for critical illness insurance, it is bought for a longer duration of time.

Waiting Period

The waiting period of a health insurance plan is usually 30 to 90 days. Hence, you cannot apply this if there is an accident. Under a critical illness insurance, the waiting period varies from one health insurer to another. You can claim the sum insured amount upon diagnosis of the illnesses only after this period is completed.

Reimbursement

Under a health insurance policy, if the hospitalization exceeds 24 hours, the expenses will be covered. You can also get the medical bills and treatment costs reimbursed, after the treatment is completed. However, under critical illness insurance, the sum that is assured will be paid to you in full, if you survive 30 days after the surgery or diagnosis.

Benefits

Health insurance policies are indemnity plans, and they cover the actual hospitalization. For filing a claim, you must submit all the medical bills, treatment expenses and other relevant bills. After this, you will be compensated upon verification of your bills and medical expenses.

However, critical illness insurance are fixed benefit plans. If you have any critical illness and it is included in your insurance policy, you will receive an amount which can be utilized by you according to your wish. You can do whatever you want, such as paying off the liabilities, taking the best treatment, paying off any other debts with the received amount after you’ve claimed a critical illness plan. Whatever sum insured is received by you after claiming health insurance can only be used to cover the medical expenses.

Cost of premium

Because of its comprehensive coverage, the premiums that are paid in case of a health insurance plan are higher. On the other hand, under the Critical Illness Cover, the premiums are less. Go for the plan that best suits your needs and the premium does not burden you.

Coverage for members

A regular plan provides health insurance for senior citizens and even an entire family. However, under a critical illness cover, only an individual is covered based on the sum insured. In simple words, both health insurance plans and critical illness plans cannot be replaced with each other. You get unique and different benefits or coverage from both these insurance plans.

Before the festive season of Diwali, people try to renovate and paint their houses in order to make them look attractive. Families make a list of new things to buy, ranging from new clothes, electronic appliances and gifts for relatives and family members, but all this requires a lot of funds.

Such a high and urgent requirement of funds during Diwali season can only be fulfilled through a gold loan by mortgaging gold articles to a lending institution like banks or Non-Banking Financial Institutions [NBFCs].

Currently, there are various banks and NBFCs that offer gold loan to individuals at attractive interest rates. And with Diwali around the corner, the lending institutions may provide special offers in order to make their gold loans more attractive to borrowers.

Procedure to apply for a gold loan differs from one financial institution to another. But basically, you have to pledge your gold article to the lending institution, which will check its purity and evaluate its market value.

After the verification of the required documents submitted by the loan applicant, the Gold loan is sanctioned, which can be up to 80% of the gold value.

Below is a list of advantages of getting gold loans

No need for Income proof

If you apply for a personal loan, the bank will ask for your income proof to make sure that the person can repay the loan or not. But not in the case of gold loans, where the borrower has to deposit gold to the lending institution who will then give the borrower the loan amount. All this will happen without the need for salary or income proof of the individual.

No adverse effect of bad credit score

Bad credit score will not have any effect on your prospects of getting a gold loan. The lending institution sanctions gold loans once they acquire and verify the gold articles provided by the loan applicant.

Low-interest rates

Compared to the interest rates of unsecured loans like personal loans and home loans, the gold loan interest rate is comparatively much lower. Secured loans like gold loans are secured with gold articles which are mortgaged as collateral.

Speedy sanction

The gold loan does not require days or months to get sanctioned. The documentation requirements are minimum which leads to speedy sanction. Once the gold is handed over to the lending institution, the loan applicant will receive the loan amount in cheque or cash. The time taken on sanction depends on the verifications of documents and gold.

Easy to procure

It is easy to get a gold loan by just mortgaging your gold articles to the lending institution and getting loan amount upto 80% of the gold market value. As mentioned above, there are no additional paper works required which reduces the time taken in getting gold loan approvals.

Next time if you need some urgent funds, especially during festive seasons, do make good use of use gold jewellery by taking a gold loan.

When it comes to repaying the home loan, every borrower’s capacity is different than others. Your personal responsibilities towards your family and yourself have a more significant impact on your repayment capacity. Therefore, you must consider different methods in order to avoid financial stress.

Here are six repayment methods that can help you plan home loan repayment.

Choosing the Right Home Loan

Repayment plans are not like ‘one-size fits all’. As you are the person who will be paying the loan, you should select the plan based on your preferences. You need to be a lot careful while selecting the tenure of home loan. Remember, as you reduce the tenure, the EMIs increase, but the total payable interest goes down. This does not mean, selecting the shortest tenure is the smart choice. A home loan EMIs shouldn’t be more than 43% of your income. Therefore, choose on the basis of your financial capacities.

Determining Your Loan Repayment Capacity

It is the difference between your total income and expenses. Once, you start evaluating your financial condition, you can roughly dedicate your income towards paying the EMIs. Moreover, you also need to consider your future expenses like a child’s education, vehicle purchase, etc. while deciding your repayment strategy.

Accelerated Repayment Plan

Here, you can increase the EMI amount when you get a bonus which increases your disposable income. In addition, you can pay a lump-sum amount to repay your loan. Both of these ways increase the pace of loan repayment and saves your taxes.

Balloon Payment

This method is mostly suggested for business people who have higher financial needs. By using this method, you would be able to repay around one-third of your home loan amount in the last few instalments. Basically, a balloon payment is nothing but a lump sum payment made to repay the home loan in some prearranged intervals say 5 yearly or at the last stages of a long-term loan.

Step-Up Repayment Loan

This is another fantastic method that can suit your repayment capacity when you have taken a home loan during the initial stages of your career. Step-up repayment method perfectly links your repaying capacities with the growth in income. Your income increases with your progress in your career. So by using the step-up method, you will be paying lower EMIs at the beginning, which will gradually increase with time. This method will enable you to the same tax benefit even if the EMIs increases. Besides, by using this home loan repayment method, you would be able to avail a higher loan compared to a conventional housing loan.

Step-Down Repayment Loan

This method is precisely the contrast of the method described above. Here, the home loan EMIs are higher in the initial years of tenure and decrease over time. Therefore, this method is suitable for people who have taken a home loan in older ages.

You can choose the combination of any of the above methods to repay your home loan.

Commercial vehicle insurance provides cover to commercial vehicles in case of physical damage and liability coverages for amounts, situations, and usage not covered by a personal auto policy. There is a difference between a personal vehicle insurance policy and a commercial vehicle insurance policy.

It covers a variety of vehicles from automobiles used for business, including company cars, to a wide variety of commercial trucks. Like the personal motor insurance policy, commercial vehicle insurance provides similar coverages such as liability, collision, comprehensive, medical payments and uninsured motorist coverage.

Operating business with commercial vehicles in India is quite risky on Indian roads. In order to safeguard your business, an insurance policy for your commercial vehicle is essential as it will give you financial support in tough times. In addition, Indian roads and traffic conditions are quite famous for their notorious nature. Hence, taking your chances without a proper policy for claim benefits is going to give you even more burden.

Below is the list of benefits of commercial vehicle insurance

Coverage Benefits

The primary benefit and the main reason for purchasing commercial motor insurance is the coverage it provides. Motor insurance offers coverage privileges that help you and your employees driving the commercial vehicle.

Many types of benefits are included in such policies that may cover damage expenses for not just the driver and the vehicle, but also for any third party victims involved in the mishap. Commercial vehicle accidents are more hazardous to not only you but your company as well. Victims can file cases against your company for which you may have to pay heavy sums if you do not own a liable insurance policy to back you up.

Provides protection to Business Material

Commercial vehicles are mostly used for carrying company equipment from one place to another. All those pieces of equipment could be damaged due to an unfortunate accident.

However, a commercial vehicle insurance policy covers all these expenses and helps you in replacing all those valuable business components and materials without any financial burden. On the other hand, personal motor insurance may not be able to cover such benefits, so better choose wisely. Choose the policy that satisfies your requirements. Use the motor insurance calculator online to get estimated premium payments.

Larger Limits

Another big reason for purchasing commercial vehicle insurance is the benefit of getting higher limits on them. Any accident due to the commercial vehicle can cost a lot of money and insurance agencies try to give you larger limits on the covered expenses for helping you out as much as possible.

Protection of Employees

It also protects the drivers who are employed by you for driving your commercial vehicles because they are also subjected to risks on the road. Commercial vehicle insurance will tend to any mishaps that may occur to your employee drivers. Covering any expenses related to their medical fees, etc. is easier if you get one of such policies.

Using commercial vehicle insurance for protecting your valuable assets gives you a sense of relief while running your hectic businesses. Choosing the right one is also very important so that it will help you get the best benefits and ensure a healthy and prosperous business in the long run.

NCB or No Claim Bonus is a benefit that accrues for the insured in the event where no claims are made during the period of the previous policy. According to the current rules in India, the NCB increases up to 50%, which is the maximum amount of bonus possible. The NCB is lost in the subsequent period of a car insurance policy if the insured lodges a claim during the current policy period.

How to Transfer NCB?

As per the IRDAI, the NCB belongs to the person insured and not the vehicle. It means that when a vehicle is transferred to another person, it is possible to transfer only the insurance policy but not the No Claim Bonus.

The person buying/ receiving the vehicle would need to pay the differential amount for the NCB for the remaining period of the policy. If the original owner buys a new vehicle, she or he can retain the NCB for the new vehicle.

In order to make a transfer of two wheeler or car insurance plan, the original vehicle owner must submit the necessary forms and documents, with a letter stating the request to transfer the NCB from the existing insuring company.

The insurer would need to issue an NCB certificate, which is valid for a period of 3 years. This certificate must be submitted to the new company insuring your vehicle. When buying car insurance online, the certificate would not be required, just a declaration from the insured would suffice. Under no circumstance, the insured hide any facts such as claims made on the insurance policy – the new insurer is sure to verify the details from the previous insurer.

How to get the Most Out of the NCB?

When buying a vehicle, people negotiate extensively with the dealer on freebies and financing options. However, the motor insurance portion seems to take a backseat and is often overlooked. It is possible to save some amount on the premium you pay for your vehicle insurance using the NCB.

• When transferring your old vehicle, ensure that ownership is what you transfer and keep a copy of the new entry.
• Upon receiving the delivery note, send a copy to the insurer, based on which they would send the NCB certificate or a holding letter. The letter would be valid for 3 years.
• This NCB must then be sent to the dealer from whom you have bought your new car. This transfers the NCB to the new policy.
• Remember to check the various options for vehicle insurance You can save a lot of money and get the best deals by making online comparisons.
• Try not to switch insurers before the duration of the policy since you would have to give up the NCB for the year.

At the end of the term of the motor insurance, the current insurer should provide proof of no claims, which the insured must then provide to the new insurer.

The best motor insurance policy is not only the one that is offered by a reputed company or with the lowest premium but one that offers the best coverage for the widest variety of eventualities and saves you from out-of-pocket expenditure when things go wrong.

To ensure that a claim you make will be honored by the insurance company, it is important to know exactly what you as a policyholder are paying for. Understanding motor insurance terms and what they actually mean can be very helpful.

Below is the list of common motor insurance terms you must be aware of

Comprehensive car insurance

Comprehensive car insurance offers third-party insurance and also offers coverage for theft or damage of the policyholder’s vehicle. A policyholder can also choose add-ons to make the policy even more comprehensive.

Personal accident cover

This is one of the most important motor insurance terms to understand. While comprehensive policies protect the vehicle, personal accident covers the policyholder for physical injuries or disability due to a car accident. You can avail personal accident cover for the driver and all passengers depending upon a car’s seating capacity.

Third party insurance

This type of insurance is compulsory, and it provides compensation only to the third party (not the policyholder or insurance company) who may be involved in an accident with the vehicle of the policyholder.

Grace period

Car insurance should be renewed before the expiry of an existing policy to prevent the policy from lapsing and to receive benefits like a no-claims bonus. Sometimes, a policy does not get renewed on time due to unavailability of finances. Hence, insurance companies offer a 90-days grace period for a policyholder to renew the policy and maintain the accumulated NCB beyond the date of expiry.

No claims bonus

When it comes to car insurance renewal, this is one of the motor insurance terms you will come across. A no claims bonus is offered on policies where a policyholder has made no claim during the previous year. It is a type of reward over your premium.

Riders

In order to provide more services to policyholders, companies give the choice to the policyholders to buy the amount and type of coverage they require. These optional add-on features can be added to a basic or a comprehensive policy. The premium cost goes up, but the protection also increases.

Zero depreciation cover/ depreciation

Depreciation is the term used to indicate the decrease in the perceived value of a vehicle each year after purchase. Typically, commercial vehicle insurance premiums will go down over the years because of daily wear and tear and age will render a vehicle less valuable than at the point of sale. Zero depreciation cover is an optional rider that offers full compensation for replaced parts of a vehicle after an accident.

Cubic capacity

This is the volumetric capacity or what we commonly refer to as CC of a vehicle. This is relevant because it determines the amount of premium payable. Higher the CC, more the premium payable.

Lag or time gap

This is the period that may have elapsed between the time of the accident and the time a claim is made. Hence, it is important to make a claim as soon as possible. It can also refer to the time lag between making a claim and receiving payment or reimbursement for it.

Network Garages

This refers to garages and workshops that have a tie-up with the insurance company. The company encourages policyholders to use services of these garages that may also offer cashless facilities.

There might be many other terms in a motor insurance policy but the above ones are the most common and important ones to know so that you can lower your chances of an unsuccessful claim.