Aman Khanna

The new year arrives hand-in-hand with new resolutions. You decide to give up on that extra piece of pizza or an extra hour lazing in bed—one step towards a healthy life. Then why leave your finances behind? What could be better than ushering in 2019 with a financial plan that suits your needs? This is where personal loans can come in handy. They can secure your current lifestyle and also help you plan for the future. To top it, instant approval, easy application, minimal documentation and attractive interest rates are reasons why it is a favourite among borrowers. This is why you can opt for one (or more) of the following loans, which can help you sail through 2018 smoothly. Different loans for different needs. Holiday loan: If travelling is your passion, this one is for you. Want to keep your savings intact or the monthly budget unaffected? A holiday loan will do the trick. Get your travelling fund with ease and, yet, pay a lower rate of interest compared to your credit card. But, your creditworthiness and the travel destination will determine the loan amount. Wedding loan:This helps you pull off wedding expenses. Use it to book hotels, buy jewellery, and pay the caterers and decorators. The wedding loan amount will depend on your financial background, creditworthiness, and age, among other things. The present market rate will determine the interest rate. It is usually higher during the peak wedding season. Festival loan:Don’t let a shortage of funds dampen your festive mood. Don’t you wish to see that smile on the face of your fashionable daughter by gifting her a designer dress this winter festive season? These short-term loans come with a low borrowing limit, a lower interest rate and lower processing fees. Home renovation loan:Give your home a new look in the new year. Seems a distant reality? Not any more, provided you take a home renovation loan. Get the same hardwood floor you saw in Mr Mehta’s bungalow for your house. And what more can you ask for if you get tax exemption on your home renovation loan?. Top-up loan:You can get a top-up loan on your existing personal loan, if you need it. You can then convert your kitchenette into a beautiful modular kitchen. You can get a top-up loan at a lower interest rate and over a long tenor. Consumer durable loan:Have you been putting off buying the latest television set for long? It’s time you owned a 3D full-HD LED Smart TV. For, banks offer consumer durable loans to help customers buy home appliances. Gold loan:An advance against your gold: this is probably the most popular type of loan. It can bail you out of emergencies. Medical loan:With soaring healthcare costs, medical emergencies are now a matter of grave concern. This is where a personal loan for medical emergencies can be your life saviour. NBFCs offers loans up to Rs.25 lakh to help you meet medical expenses. Get your loan sanctioned online in no time. Flexi personal loan:This is an overdraft facility the trusted customers of certain financial institutions enjoy. It allows you to have liquid cash at your disposal. You can use the entire amount or a part of it whenever you need. You pay the interest only on the amount you withdraw. The lender usually charges interest on a daily basis. Loan against assets:Consider using your property if you need urgent cash. Taking loans against personal assets is a better option than selling them off. Professional loans:Lenders offer personal loans to professionals like doctors, engineers, architects, and journalists. They offer the loan to help them buy equipment, set up the premises or renovate it, and the like. These loans are intended to help expand the existing business. A recap: So, if you need funds urgently this year, a personal loan could be the answer. But remember, your creditworthiness will be crucial. So, do your homework well before you apply for a loan.

You must submit Form 15G and Form 15H to your FD issuer to prevent deduction of TDS on your interest income, as long as your total income is below the taxable limit. You can submit these forms only if your interest income is less than Rs.5,000 from company fixed deposits, is less than Rs.10,000 from any other deposit, or is less than Rs.50,000, in case you are a senior citizen, in a financial year. For instance, if you opt for a Fixed Deposit from Bajaj Finance, you earn up to 8.85% interest on your deposit. You can use an FD calculator to view your returns in a financial year in advance, and see whether or not you have to submit either form. Also, remember that you don’t need to go to your issuer’s office and submit these forms in person. You can submit them to the financial institution online just as easily, as per your convenience. In case you fail to furnish these forms in time, you will not be able to avoid TDS. So, to avoid this tax deduction from lowering your earnings, take a look at the 5 simple steps to submit Form 15G and Form 15H online. Using your user ID and password, log on to your bank’s netbanking portal. Then, go to the tax section and select Form 15G or Form 15H. Now, you will have to enter details such as your PAN, residential status, address, estimated income for which declaration is made, estimated total income of the previous year, details about the income for which declaration is made, etc. Once you fill all fields, click on the ‘Submit’ button. Download the acknowledgment receipt displayed on the screen. Be sure to save the service request number for future reference. Ensure that you enter all details accurately while submitting either Form 15G or Form 15H. Also, do so on time to avoid tax deducted at source, and remember to keep your PAN card handy to complete the procedure smoothly.

‘I dislike feeling at home when I’m abroad.’Mr. Rathore quotes the great George Bernard Shaw as he exclaims his love for traveling. During his last visit to Reykjavik, capital of Iceland, he already made up his mind to part ways with his mind-numbing desk job to try his luck elsewhere. Traveling mesmerizes him, and he is extremely willing to carry on his love for adventure through a business. In order to set up his own travel agency, Mr. Rathore needs to invest a fairly reasonable sum for licensing and hiring employees. Through intricate market research and by identifying his niche, Mr. Rathore concludes that his potential customers would surely love his perspective of adventure tourism. To cope up with the fragmented travel industry, Mr. Rathore needs to channelize his investments depending on his target customer range. However, investments call for funding, and this is where financial institutions like Bajaj Finserv emerge with their provision of a business loan for new business. Modus operandi “Distinguishing my business niche sounds like the most appropriate admission to a relevant business plan,” exclaims Mr. Rathore. Thanks to the social media boom, setting an online travel venture is easier. The extremely competitive travel industry calls for real product differentiation whereby Mr. Rathore should be able to portray extraordinary skills owing to his managerial experience. This calls for a strong business plan that clearly tabulates his expenditures and projected revenue generation. Business ventures require an adequate capital injection in the form of a business loan or other variant of financing to begin operations and pay for factor costs. Entrepreneurs incur fixed costs irrespective of production whereas variable costs vary with production figures. Thus Mr. Rathore needs to carefully fabricate his business plan in order to accommodate for his costs. In general, entrepreneurs need investments to accommodate for: -Creating potentially viable means of battling basic capital barriers. -Co-evolving with competition and self-contribute to maintaining a unique selling point. -Marketing and advertising to showcase his products and services amongst the competition. -Hiring employees capable enough to withhold his company’s primary objectives and contribute to higher production figures. -Hunting for hypothetically feasible objectives and understanding national economic conditions. -Handling licensing and other legal difficulties. Factors that Mr. Rathore should consider before applying for a business loan: Nobody uses quick business loans to pay for household expenses. Mr. Rathore’s business plan carefully considers a hypothetical situation whereby he assumes a considerable investment injection from a financial institution. Questions he asks himself before meeting loan executives; -Do I even need one?’ -How should I choose the ideal loan offering for my start-up business?’ -Does a lower business loan interest rate, guarantee necessarily guarantee lower repayment?’ -Are there any cheaper alternatives to financing my objectives?’ -Do I fulfill the prerequisites for acquiring a small business loan?’ -Do I still need a loan for business?’ Mr. Rathore formulates an intense description of his very basic needs first. Adventures travel has gained enormous popularity in recent times, but potential customers look for something unique before they agree to invest. Evidently, Mr. Rathore needs to advertise his range of tourism services, details of the itinerary and approximate costs to be incurred by the customer. Basic prerequisites and eligibility criteria required for obtaining business loans: Firstly, banks and financial institutions offering these loans need to know the business type. Thus applying for loans in structuring a manufacturing business differs from that for opening a new studio. Stratum firms generally lack credibility because they can barely produce collateral. Real estate business firms are more trustable since they have more potential than a studio that is already liable to pay for infrastructure space. Additionally one needs to provide information on business types, like a sole proprietorship or public/private limited companies. Leading financial institutions like Bajaj Finserv allows applicants above 21 and below 65 years to apply for business loans. Applicants need to advance identity proof, address proofs, income tax returns, turnover and bank statement to the lender before they can apply for the loan. Curate your business plan like a pro and get your business loans approved faster than ever!