With just 5 days to go for the roll out of GST, the GST common portal opened inviting fresh registrations of first time taxpayers including those to be registered as TDS/TCS and enrollment of GST Practitioners. It is also open for existing taxpayers to complete their enrollment process.
The Goods & Services Tax has been referred to as the most significant tax reform in India post independence. The new regime will usher in a common national market by doing away with a complex web of local and central taxes and incorporating them into a single levy.
The GST portal has already opened two windows for enrolments – first between November 8 to April 30 and then from June 1 to June 15. This is the third window to allow all taxpayers enough time to migrate to the new regime.
As the technology provider of the regime, GSTN has been working tirelessly to ensure there are no delays in the commencing of the ambitious indirect tax regime. The GSTN has set up a robust portal already equipped to handle as many as 2.6 billion transactions every month.
The GST Common Portal will enable taxpayers to meet the GST compliance requirement like filing returns and making tax payments.
About Goods and Services Tax Network [GSTN]
Goods and Services Tax Network [GSTN] is a Section 8 [under new companies Act, not for profit companies are governed under section 8], non-government, private limited company. Instituted in March 2013, the Company has been set up primarily to provide IT infrastructure and services to the Central and State Governments, tax payers and other stakeholders for implementation of the Goods and Services Tax (GST). The Government of India holds 24.5% equity in GSTN and all States of the Indian Union, including NCT of Delhi and Puducherry, and the Empowered Committee of State Finance Ministers (EC), together hold another 24.5%. Balance 51% equity is with non-government financial institutions. For more information, please visit GSTN
With the second round of GST enrollment set to close tomorrow, the GST Network, the company providing the IT backbone for GST, announced that it will re-open the process of enrollment on June 25 to allow all taxpayers to smoothly complete the process.
More than three fourths of the total 80 lakhs existing tax payers under VAT, Service Tax, Central Excise and other taxes that are being subsumed under GST have already successfully enrolled themselves on to the new digital platform in two rounds of enrollment.
The exercise started from November 8 and continued till April 30 by when around 60.5 lakh taxpayers had enrolled. More than 4 lakh of the remaining taxpayers have completed their enrollment during the second window that opened on June 1. However, for the remaining tax payers, there will still be another opportunity to accomplish the task.
We realize that when we are implementing a change of this magnitude, taxpayers must be given sufficient time and opportunity to smoothly join the new online platform that will usher in a unified tax structure. Already, a majority of taxpayers have enrolled themselves for GST. Yet, those who might still be left due to any circumstances or technical inability need not panic with the closing of this window as we will open another round of enrolments from June 25.
Notably, the process of enrolment is not a highly time consuming one, with the total time taken in the entire process being not more than 15~20 minutes.
The Goods & Services Tax has been referred to as the most significant tax reform in India post independence. The new regime will usher in a common national market by doing away with a complex web of local and central taxes and incorporating them into a single levy.
With rumors of a possible delay in roll out doing the rounds, the government yesterday clarified that the GST regime is very much on track to roll out from June 25, its designated date.
As the technology provider of the regime, GSTN has been working overtime to ensure there are no hiccups in the commencing of the ambitious indirect tax regime. The GSTN has set up a robust portal already equipped to handle as many as 3.2 billion transactions every month.
All taxpayers, who have valid a PAN and are currently registered under any State or Central taxes that will be subsumed in GST, are being migrated to GST under this process of enrolment, which essentially implies validating the data of existing taxpayers and filling up the remaining key fields at the GST Common Portal, which will serve as a one-stop shop for all tax payers.
The GST Common Portal will enable taxpayers to meet the GST compliance requirement like filing returns and making tax payments.
Confederation of All India Traders [CAIT], the country’s largest trade body, Acer, one of the largest PC companies in the world and Tally Solutions, India’s leading business software provider, have announced the launch of BIZGURU, a one-stop plug and play business solution for all accounting and GST compliance needs.
BizGuru comes with Acer’s world-renowned PC products and pre-installed Tally.ERP 9, the country’s preferred business software. The initiative is supported by CAIT, who have been helping Indian traders embrace new technology for the last decade.
The introduction of Goods and Services Tax [GST] is a remarkable step in the reform of indirect taxation. It offers a great opportunity to organizations of all sizes and sectors to transform and enhance their shift into the digital economy. One of the biggest challenges for the small businesses and traders is to understand the enormity of GST and adopt real time implementation of it. Therefore, there comes the need of a comprehensive IT solution that would enable smooth implementation of GST and will help businesses in digital transformation.
Acer and Tally have been pioneers in introducing innovative products and solutions while CAIT brings with it the country’s largest network of traders. With GST coming in, considering a dire need to upload digitized transactions for invoice matching; they have joined hands to introduce – BizGuru. This solution will cater to all small businesses and traders across India who are currently using manual methods of accounting.
From Left Harish Kohli, Managing Director at Acer India, Praveen Khandelwal, General Secreatary at CAIT, Tejas Goenka, Executive director at Tally Solutions
Acer’s GST customized range of computers perfectly complements Tally’s software, Tally.ERP 9 which will be pre-installed and give businesses peace of mind that by merely switching on the solution, they can get up and running with accounting and GST compliance. This will make BizGuru a compelling GST solution in the market.
Furthermore, CAIT will lead the way in reaching out to the traders and small businesses with the solution and helping the community get GST ready. Tally’s education arm will also provide a certification programme to train the traders on the solution.
Speaking on the occasion, Harish Kohli, President and Managing Director, Acer India said
We are excited to bring in an exclusive GST Solution, BizGuru, along with CAIT and Tally to offer a unique Plug and play solution to the customer. We are committed towards providing innovations that will help all businesses to expeditiously become accustomed to GST requirements, thus enabling them to focus on their core business and accelerate their growth journey in this digital era.
As the GST journey began in the country, we realized that many traders have not felt the need to automate but with GST this will be difficult to live without because of the need to upload transactions for invoice matching. We are happy to have come together with CAIT & Acer to deliver Biz Guru, a complete and affordable plug and play solution which will help the trader community automate their business and comply with GST. Pre-installed Tally which accountants are well versed with means that there are no hassles for the business owner and even if they want to learn an otherwise easy solution, we will extend support there too.
B.C Bhartia, President CAIT and Praveen Khandelwal, General Secretary, CAIT added
The GST taxation system is completely different from the earlier taxation system and hence a comprehensive, easy to use solution is the need of the hour. It is imperative that small businesses and traders adopt technology and understand procedures of compliance. At a time when the Government is moving towards e-governance, the businesses cannot remain aloof from technology. BizGuru is infused with a wide range of features that will meet the business requirements and customer expectations with the GST roll-out.
Few months back, we had written a review of Kushal Tradelink and analyzed the performance since I have myself invested in Kushal Tradelink based on suggestions given by a friend who is very active in the stock market. There were lot comments to the Kushal Tradelink stock review article where many readers also invested in it whereas some had confusion about whether to invest or not.
Earlier this month I had a chance encounter with a heavy-duty investor at the Mumbai Airport and over-heard him giving some insights about Kushal Tradelink over the phone. As you might have guessed, I decided to convert this chance encounter into a learning opportunity. I started discussing with him about Kushal Tradelink, it’s performance, etc. since it is always important to learn from seasoned investors! I am in touch with that investor [not disclosed due to confidentiality reasons] during the time when the lower circuit for Kushal Tradelink had not yet opened and decided to have a Q&A session with him once we shared very good rapport and when lower circuit had opened up Kushal Tradelink.
Below are the edited excerpts from the interview [Note : Due to confidentiality reasons, we are unable to reveal the name of the retail investor and the interview it for the benefit of retail investors who are interested to invest in stock market].
Are you an investor in Kushal Tradelink and can you comment on it’s performance ?
Yes, I am holding more than 100k shares of that company. What should I say about it’s stock performance! Entire Indian stock market has witnessed its strength and performance. I would say it is one of its kind of stock. Kushal Tradelink is an investment that has given 10x returns in 13 months and this is what makes it an excellent stock.
Any particular reason why you did not sell the shares of Kushal Tradelink when it was at its peak at Rs. 600 ?
Well, there are many reasons behind that, first I have invested in Kushal Tradelink from a long term perspective and believe that it will be around Rs. 1200 valuation after couple of years from now, another reason is since there are very few investment options available if I would have sold the shares. One option could be buying a property or investing in some other company. If I invest in another company’s shares there is no guarantee that it would give huge returns like Kushal Tradelink does and same debate holds good for buying a property. I strongly believe that Kushal Tradelink is a long term investment and investors should hold on to it.
There are some speculations in the media that Asia’s best performing stocks have started to nose-dive and investors are not able to sell the stock, your comments on the same and future market trends ?
Look, there is no doubt about that it was Asia’s best performing stock, all the investors that invested in it even for a couple of days were able to sell it with profit. Fall in price depends on supply and demand of the stock and just because authorities don’t want investors to make money they shifted it in Trade-to-Trade (T2T) segment and hence the demand decreased. I am considering Kushal as gold jewellery purchased for my wife neither I would go for selling it if price rises nor I would panic if the price goes down.
It is observed that any stock that has started to fall with lower circuit has never opened it’s lower circuit before it reaches to penny stock, do you think it will be a penny stock or you are still optimistic ?
It is not always not necessary that history repeats, We have observed its strength on the occasion of Brexit and when Demonetization was announced. On 2nd Jan 2017, the media criticized the stock heavily and many investors sold the shares. Hence in normal circumstances more positive buyers are there than the negative ones.
If we talk about lower circuits than I would like to emphasise on government body’s intervention that has created this chaos. SEBI and BSE has jointly taken the decision to shift it to the T2T segment for the welfare of the retail investors. This step has turned out to be a nightmare for the retail investors that have already invested in the company. Just because of T2T, big seasoned investors lost their interest and that’s why retail investors panicked and lower circuit started.
If you look at Atlas cycles same thing happened with that company as well, so it is nothing like it was the fault of Kushal Tradelink or there is anything wrong with their financials, or company suddenly started making losses, this phenomenon is due to varying supply and demand of the stock.
I have met many people and they were claiming that Kushal Tradelink’s stock price rose substantially because of manipulation but in reality it rose higher than their expectations and expert’s knowledge and therefore it was easy for them to say so. However, if you look from my point of view it is clearly visible that price rise was just due to demand and supply. According to my study based on shareholding pattern of December, I concluded that the price rose during the time frame October~December 2016 and it can be attributed to the formula of Supply v/s Demand.
How you can say that numbers were not manipulated and it was pure role of supply and demand ?
If you ask any person that is not involved in the stock market, he would claim that whole stock market is like satta bazar or it is manipulative. In last September there were more than 19000 shareholders and in December there were 31000 shareholders. More than 11200 retail investors have shown their faith in the December quarter. A single quarter has 60 trading sessions which means that every day on an average every two minutes, one ‘new’ shareholder has purchased shares of Kushal Tradelink. We have not included intra-day and short-term traders for this calculation and total 30938 shareholders have shown their faith and made money in the December quarter alone. This huge number itself spells for the trust that retail investors have in Kushal Tradelink.
If we talk about FIIs than 4 new FIIs and 16 new foreign portfolio investors are currently holding stocks of Kushal Tradelink. In addition to that more than 300 new clearing members are holding it and 130 corporates have also purchased it. Because of the heavy demand, stock price of Kushal Tradelink sky rocketed in December and critics think it is manipulative.
Market capitalization is decided based on number of shares multiplied by price and the price rose because of demand and supply, and not because of PE, EPS and book value or peers comparison. People who criticize Kushal Tradelink must understand the demand and supply mechanism first since that is driving the growth for Kushal Tradelink. I am a shareholder in Kushal Tradelink and it has given me millions of moments to rejoice and same holds good for all the other investors of Kushal Tradelink. On the contrary I have not heard any expert opinions on Kingfisher, Unitech, and Satyam scams but their expert opinion are voiced out for the company that has consistently created fortune for thousands of people.
What is your next step, are you placing sell orders like others or you will buy shares of Kushal Tradelink in the lower circuit ?
According to me selling shares of Kushal Tradelink in the near future is a very bad option, let me tell you why – Company is going to do amalgamation of four companies, in addition to that, I have also heard from reliable sources that they are in process of buying few stressed business assets and they are diversifying and entering into the I.T, entertainment and Textile industries as well. Above all, Kushal Tradelink is debt free company and it’s financials are growing YoY and that will again reflect on it’s stock price. Therefore performance of Kushal Tradelink would remain intact and it would grow much faster because substantial number of people who have doubts on it’s performance are becoming positive buyers now and that will help in increasing it’s new and strong base of shareholders. My suggestion as a seasoned investor is to hold on to shares of Kushal Tradelink and buy it in case you haven’t.
Financial experts say that it will be penny stock because all shareholders will sell it when they will get opportunity, there is no chance of opening lower circuit. On what base you are giving the call to buy stocks of Kushal Tradelink ?
Popularity always makes a difference and I can predict that huge buying is about to start in the next coming days. Kushal is very popular all over India because of its price, performance and thousands of retail investor’s profitability. If you have not seen America that doesn’t mean America does not exist, same thing happened with the experts and I don’t think expert’s opinion matter. Apart from that let me give you an example how lower circuit will open, why people will not sell their holdings and my prediction of the future.
Assume that one share holder of Kushal Tradelink tells 5 people about the company or it’s amazing run at the stock market. Out of those 5 people may buy it because they trust the person who is giving that suggestion. Out of those five people, two of them invest in Kushal Tradelink as per the financial plan chartered by them.
Now let’s look at the bigger picture. At the end of September quarter, Kushal Tradelink was having more than 19000 shareholders. Out of that let’s say 9000 people recommended it to 5 people out 45000 people, out of that let’s say 18000 people actually purchased. However remaining 27000 are tentative to invest and when they get its reference from other reliable source they may jump in to buy stock at any time. Because of ~18000 new investors (short and long term) in Kushal Tradelink in December quarter, stock price of Kushal Tradelink sky rocketed.
In a nutshell, all people in the market that have either earned short term profit from Kushal Tradelink or have heard about it’s earlier rally or are referred by someone will come to buy it at 50% corrected price from it’s high price and people that plan to sell will anyways do it. This is how popularity of Kushal Tradelink is going to increase day by day and more number of retail investors will invest in the company’s stock.
Now let’s talk about predicted future:
According to our market research, we have found out that all those people that have booked full or partial profit are interested to buy Kushal Tradelink, apart from those people that have missed earlier rally or those who criticized Kushal Tradelink earlier are also interested in buying its shares. It is visible that many investors are buying it daily. Based on a research, the conclusion is that more than 1 crore shares are expected to be bought by old and new individual shareholders and the number does not include FIIs. We are also expecting more than 2 crore shares would be bought by HNIs and on the other side only 75 lakh shares are expected to be sold. Therefore we believe that demand remains higher than supply hence high rise in price is expected until demand and supply becomes equal.
Another thing is that demand in Kushal Tradelink was very high and it will remain higher in future because it has tripled investors’ money in a short span of time and based on it’s capacity, similar performance is expected in the future.
I am not talking anything about fundamentals as they are available for you on the BSE websiteand you do your own research. However company is on it’s way to buy more businesses and starting new ventures that you will get notification from BSE website, I am not suggesting popular mobile app for stock market because it does not have all the updated figures available. Hence I prefer BSE website for authentic data, besides this I am going to buy at lower price because of my research, simple logic and common sense. I am sure that price will get necessary support from the big boys forever just like earlier events 🙂
There are lot of negative talks about Kushal Tradelink, so what is the reason you are so optimistic about the company & its performance ?
You know our Indian culture, we rarely appreciate others for their success because we think we are the smarter than others and that’s the problem. People that don’t hold stock are in race to prove their self as experts by recalling their previous advice. I would like to thank all those people that have given space to Kushal Tradelink in their mind for free.
However let me tell you one thing that I am not going to make money by listening to their expert opinion, I am going to make money by taking my own call because it’s my own money so I cannot let others take decision for my money. If I will hold the stock, it is better to ignore those freebies since they are nothing but enemy of your profit. Can you tell me which is next Wipro, Infosys or TCS after 15 to 20 years?, no right. I am looking at Kushal Tradelink after a decade like one of these companies. So my suggestion is to buy it around Rs. 150 in quantity and when it price rises, get your invested amount back by selling few stocks and remain invested with your profitable shares, I am sure you will thank me after few years. In fact, you are invest in a lesser risky option like Fixed Deposits (FD) and let the profit from Kushal Tradelink be invested in buying it’s shares!
To sum off this lengthy discussion,
According to me Kushal Tradelink is people’s company and since more & more hands are joining forces together, its strength is growing. You can be a part of people’s company and create fortune or become a lone spectator, choice is in your hands…
Create history or Witness History
Disclaimer : Information provided in the article is based on my research, retail investor’s knowledge. I have personally invested in Kushal Tradelink stock. Investment in stocks involves huge risk, so consult your financial adviser or do your own analysis before making any investment.
The bold step to ban the Rs. 500 & Rs. 1000 notes hogged the entire limelight and the 2016 USA Presidential Elections took a back seat on many news channels! Though there were some short-term problems that every commoner had to face because of this ban but definitely there seemed to be huge long-term benefits associated with this bold decision! Though the historic date of November 8th [when demonetization was announced] is long gone, it still remains a major point of discussion online as well as offline since this decision touched the lives of each & every Indianirrespective of the financial status of the person.
Some of the discussions divert towards Financial Planning, Tax Saving Techniques, Term Insurance, etc. Demonetization coupled with other factors like Donald Trump’s appointment as the President of USA did have a tangible impact on our overall economy but it also taught a very important lesson – Life is uncertain & Financial Planning should be followed with proper execution. Every investor is different and their asset allocation strategy primarily depends on factors like age, net worth, financial goals, existing portfolio and most important of them all is Risk Appetite.
There is a very famous saying Don’t put all your eggs in the same basketandhence along with wealth accumulation & wealth enhancement, it becomes imperative to look at a very important factor – Comprehensive protection plan. As it is said that ‘Sometimes you need to solely think about your near & dear ones and forget about profit creation while making an investment‘. Given the rapidly changing lifestyle, eating habits, uncertainty around life, etc. it becomes critical to invest in a Term Insurance plan.
Unlike normal insurance plans, Term Insurance is a type of life insurance that provides pure life cover. It provides insurance for a certain period of years and if the insured dies over the policy tenure, the death benefit is paid out. But in case the insured survives the tenure, no payout is made. There is no profit/savings component with a term plan but it is still one of the most affordable insurance plans compared to the normal insurance endowment plans. It is an ideal investment option for someone who has taken loan [whether it is a home loan, car loan, etc.], someone who has invested in new ventures, someone who is a sole bread-winner or someone who wants to ensure that his/her family stays in comfort even after his/her demise !! We earn for our family 🙂
Since Term insurance plans are directly linked with person’s feelings for the dear one’s, major insurance companies in India offer that product, though there are very few that offer excellent benefits coupled with customization like Edelweiss Tokio Life TotalSecure+
Edelweiss Tokio Life-TotalSecure+ is a comprehensive protection plan that provides the benefits of Life Cover as well as cover against critical illnesses. It provides an overall protection for your family. It is one of the best term plans that is highly customizable where you can customize the premium paying term, mode of payout [for death benefit]. The mode of payout can be lumpsum or a regular income. You can also choose a rider you want to strap on. There are no investment benefits and unlike traditional insurance plans, its T&C are very easy to understand 🙂
It provides life cover with an option to cover up to 35 critical illnesses. The basic plan covers 7 illnesses. Some of the important features of the Total Secure Plus are mentioned below
There is a flexible premium paying term where the insurer can do a Single Pay, Limited Pay [5, 10, 15, 20, 25] or Regular Pay for a Basic Life Cover and Regular Pay for Basic & Comprehensive Health Cover. For the Regular death benefit mode, the insurer can choose the period for which the death benefit can be paid [it could be either 36, 60, 120 or 180 months]. Monthly payouts can be customized in equal monthly sum or increasing monthly sums (increase annually @ 5.00% pa compounding). There is also a Combo option which takes care of immediate requirements as well as monthly expense.
Edelweiss Tokio Life-TotalSecure+ provides Tax Benefits where Life Cover is covered under 80C & Life Cover with Basic or Comprehensive Health cover is covered under 80D. As mentioned earlier, the premium is very less compared to traditional policies, so it’s a cost effective option. The lingering question now is whether Edelweiss Tokio Life-TotalSecure+ is cost-effective, so let’s look at the cost effectiveness of the term insurance.
At Rs. 9,180 per annum, the premium amount for a 1 crore cover/ 30-year policy term for a male, 33-year-old non-smoker [no frills] is low. Throw in the health cover options and the premium rises to Rs. 11,685 and Rs. 13,164 for the basic and comprehensive options, respectively. In comparison, the annual premium for other larger player’s e-Term is roughly Rs. 27,500 per annum under the same set of parameters – and this is minus the health cover benefit. The policy is indeed extremely affordable and cost effective.
Given the uncertainty surrounding our lives, the ever changing economic environment, fast forward lifestyle, increasing liabilities like home-loan, car-loan,etc.; it is very important to invest in a well-designed term insurance plan in India like TotalSecure+ by Edelweiss Tokio Life.
If you are an investor in the TotalSecure+ policy, please leave your review in the comments section…
Disclaimer: Information provided in the article is based on my research and I do not have any holding in it.
A laptop has become a necessity today because unlike a desktop, laptops provide greater flexibility of working wherever you want. The increased demand for laptops has resulted in a wider choice for buyers at affordable prices.
Here are four trending laptops under INR 60,000 you could choose from.
Hewlett Packard (HP) Pavilion 15-AB219TX
Priced at INR 53,300, this laptop is available with a 15.6-inch display. It comes with Windows 10 and works on an Intel Core i5 2.2 GHz processor. The storage is 1TB hard disk drive (HDD) with 8 GB Random Access Memory (RAM).
Dell Inspiron 5558
This laptop is provided with 1TB HDD storage and 8 GB RAM. It runs on Windows 8.1 operating system. It also features the Intel Core i5 with 2.2 GHz processor and a 15.6-inch screen. The laptop is priced at INR 54,300.
Lenovo Z51-70
This laptop has a 15.6-inch screen and operates on the Windows 8.1. It is also equipped with a 2.2 GHz Intel Core i5 processor, 1TB HDD storage and 8 GB RAM. The laptop is priced at INR 57,500.
Apple MacBook Air
It is available with 11.6-inch and a 13-inch display screen. Both the variants come with an Intel Core i5 processor, 4 GB RAM and 128 GB Solid State Drive (SDD) storage. The 11.6-inch laptop is priced at INR 56,800 while the cost of the 13-inch model is INR 60,000. Moreover, both variants run on the OS X 10.10 Yosemite operating system.
There are several affordable and reliable laptops available in the market. However, if you do not have the entire amount to pay for the laptop, you may opt for consumer durable loans offered by banks and non-banking financial companies (NBFCs).
These loans are easily available and come with attractive features. Here are five features of such credit facilities:
You may avail of a loan for an amount between INR 8,000 and INR 5 lakh
The entire process is quick and hassle-free as you need to submit only some basic documents when you apply for a consumer durable loan
The loan is generally available at 0% interest and low down payment, which makes it affordable
Lenders provide flexible Equated Monthly Installment (EMI) schedule, which ensures you do not face financial difficulties during repayment
If you want to pay the loan before the end of the tenure, you do not incur any foreclosure charges
Buying a laptop on EMI is simple and affordable. Lenders do not levy any hidden costs or additional charges to avail of such loans. You may easily compare loans offered by different lenders to find the most appropriate option for your needs. Some financial institutions also enable you to check your loan eligibility online and know your loan approval status instantly. Therefore, with such loans, you may easily purchase the laptop you always wanted.
Every business requires capital for meeting operational expenses and growth. Arranging funds through personal resources may not always be possible for you. In such cases, you must consider availing of a loan from banks or non-banking financial companies [NBFCs].
Most entrepreneurs may apply for a loan, which is often customized as per the specific needs of their venture. However, there are certain eligibility criteria that need to be met. Here are four types of businesses that are eligible to apply for these loans:
Self-employed professionals, such as doctors and chartered accountants
Sole proprietorship firms
Partnership firms
Private limited companies
Manufacturing ventures
Retailers
Trading companies
Here are five features of business loans:
Loan amount
You may avail of a loan from as low as INR 3 lakh up to a maximum amount of INR 75 lakh. In addition, you may avail of a top-up facility on an existing loan.
Loan tenure
To ensure you do not face any financial difficulties, the loan tenure offered by lenders is between six months to three years.
Security
Several lenders do not require any collateral for availing of a business loan in India. This especially makes it easier for small and medium enterprise [SME] owners to apply for such loans because most of the times they are unable to provide any security.
Repayment schedule
Most financial institutions offer flexible repayment schedules while determining the Equated Monthly Installment [EMI]. This ensures you do not undergo any difficulties while servicing the loan.
Rate of interest
In addition to the interest, you may need to incur additional expenses like processing fees, late payment charges and prepayment penalties. Clarifying these expenses before signing the loan agreement is important to determine the effective cost of the loan.
Following are the common documents required to avail of these loans:
Ownership proof
Audited financial statements
Know your customers [KYC] documents, such as photo identity and residential address proof
Form 16 A, which shows the amount of tax deducted at source [TDS]
Income tax returns
Bank statements
Applying for a business loan in India is no longer difficult. You may easily find all the necessary information online on the lenders’ websites. Alternatively, you may check an online portal that enables you to compare the features, eligibility criteria, business loan interest rates and other terms and conditions offered by different lenders. Conducting extensive research on different aspects related to these loans will help you make the right decision.
Business and personal loans work on the same basic principles. However, there are some differences between these two types of credit facilities. Understanding the workings of the two loans will be beneficial in comprehending their differences.
Features of personal loans
Generally, personal loans are borrowed by individuals and not businesses. Lenders perceive individual and business applicants distinctly, which is why personal loans have some exclusive features. Here are four features of such loans.
Personal finance is often available for smaller amounts
The process of loan application and approval is quick and simple
Personal loans are unsecured, which means they require no collateral
Such loans are beneficial for startup ventures that may not be eligible to avail of business finance
Features of business loans
In the last few years, business finance has seen several modifications and lenders now offer attractive options to businesses. Here are four features of business finance.
The loan amount is higher than personal loans
Banks, as well as non-banking financial companies (NBFCs), offer wide range of business loans in India to meet the different needs of applicants
Lenders offer customized loans to meet the specific needs of businesses across different sectors and industries
Financial institutions offer excellent support to applicants requiring loans for their business with the objective of helping them grow their ventures
Having seen the features of both types of loans, here are three differences between the two credit facilities:
1. Security
Most loans offered for business purposes are secured against some assets, such as equipment, premises or receivables. On the other hand, personal loans are unsecured, you do not face the risk of losing your assets in case you are unable to repay the loan amount on time.
2. Purpose
Personal loans may be used for any legal purpose. Furthermore, you generally do not need to provide the lenders with the purpose of the funds at the time of application. In comparison, the business loan amount must be used for meeting the operating expenses and other needs of your venture.
3. Loan amount
Business loans are available for higher amounts ranging between INR 3 lakh and INR 75 lakh. However, the personal loan amount is restricted between INR 50,000 and INR 10 lakh.
Self-employed professionals, medical practitioners, sole proprietors, private companies or partnership firms may apply for business loans in India. Additionally, traders, manufacturing companies and retailers may avail of such loans. A large number of financial institutions offer such loans at an attractive rate of interest. One of the leading lenders includes Capital First that provides such loans. The financial institution also offers affordable business loans interest rates, which ensure you do not face financial difficulties while repaying the loan amount.
