Category Archives: Banking

Tips for Receiving an Approval for Small Business Loans

Securing funds for small business loans have become simpler; you need to follow the right steps and prepare in advance to increase your chances of securing a business loan approval.  Certain companies that are looking out to grow require these loans to increase their working capital, upgrade or hire more employees.

Take a look at the following details in order to avail a business loan:

Provide all your information

This is mandatory and you are required to produce all the specifics and details about how you intend to make use of the funds. You also need to provide them with information regarding how you will accomplish your goals; therefore, you should prepare in advance to answer certain questions that the lender will pose to you.

Share your financial information

You will have to provide your lender with all the financial information and background of your company and your future growth plans that include your personal information. This information will help the bank and the lender to gain an insight into your current financial scenario in order to sanction your business loan. This is mandatory because a lender would be required to know all your past history so that it is easier for him/her to approve your loan.

Try looking out for multiple lenders

This requires a bit of research where you can create a list of potential lenders and discuss with them the possibilities of the loan you wish for. This will help you create more options if any one of them declines your application. Also, their feedback will help you prepare better for future business loan applications.

Look for SBA lenders

Before you take any step regarding a business loan application, you should definitely visit counselors who can assist you with any loan process. They shall also help you with various products available that you may not be aware of. Therefore, with a little assistance, you may be able to secure a loan and build your business further.


Which Mutual fund to go with: Equity fund or Debt fund

There are many investment avenues available for one to park their money. However, many investors refrain from venturing into these territories. The major reason being a lot of investors really do not understand the entire working of many investment options available.

Funds Type

Today, we shall try and understand the difference between Debt Funds and Liquid Funds. Also, try to decipher the tax treatment both the entities are liable to. However, before we proceed with the different kinds of funds. Let us try to understand the term “Dividend Distribution Tax”.

Dividend Distribution Tax (DDT)

Dividend received from a mutual fund is tax free, but only at receiver’s hand. However, mutual funds have to pay a tax on that dividend to government before giving it to us. So actually the tax is paid by mutual fund on behalf of us. This tax is called DDT.

Let us try to understand Equity, Debt and Liquid Funds.

Equity Funds

Equity Funds are the type of funds where about 65% of the corpus is invested in equity shares of different companies. The dividend acquired from these funds is exempted of DDT. Therefore, the unit holders receive 100% of the dividend declared to them. However, it isn’t any form of extra income. It is very much your invested money that you receive after the dividend.

Debt Funds

These funds invest in medium-to-long term debt securities like government bonds and corporate bonds/debentures. These funds are subject to DDT at the rate of 12.5%. A surcharge and cess of 10% and 3% respectively is applicable as well. These funds come with an effective tax rate of 14.16%.

Liquid Funds

Liquid funds are usually short-term debt securities. They invest in commercial papers, certificates of deposit and call money, where the duration is less than a year. The income incurred from such funds is subject to DDT of 25%. Like the debt funds, these funds too are liable to pay a surcharge and cess of 10% and 3% respectively on the tax.

Well, there are different types of funds available in the market. Each comes with its own benefit and purpose. One needs to invest in a fund that best suits their needs.

The Modern Modes of Banking

The usage of internet over the last few decades has soared. It has completely changed the way chores are taken care of now. Be it communication, shopping, money transaction or boosting the work sector. The changes are amazing and significant.

Internet has given people the feasibility to carry out their tasks while on the go. With every sector catching on this need of their consumer the banking sector is no different. Every bank these days is getting equally competitive with a huge trail of services they have on offer.

The consumers are getting modern and so are the banks moving ahead from the traditional way of banking. Internet and mobile banking have paved the paths to new chapters in the banking sector. Let us put light on the many advantages of these features.


Payment of Utility Bills: Standing in lengthy queues and paying your utility bills can be a real tedious task. It gets even tough if you happen to miss on the due date of the payments to be made. There are many private sector banks who understand this need of yours. Now you can pay your utility bills or mobile recharge online. Some even have gone ahead and given you the service of setting your account on recurring mode to make your bill payments time to time. So now you can peacefully carry on with your busy schedules as your bill payments are completely taken care of.

Fund Transfer: A cheque takes at least three working days to get encashed in your account. However certain circumstances can ask for a huge amount within a short span of time. When under such circumstance, internet banking can prove to be very effective. It comes with feasibility to conduct large transactions online. For instance you can pay your child’s fee online or as small as conducting a prepaid mobile recharge.  Where you can transfer money to another bank account of the same bank or other bank, however transactions to other banks are charged some nominal fee depending upon bank to bank.

Account Details: You needn’t every time step into the bank to update your passbook and to get hold of your account details. You can now keep a tab on your account online as well. With your unique log-in identity number, you can avail all your account details. The money debited and credited, if you have undertaken a loan from the bank then the whereabouts of the EMI etc.

Ask for Service: Banks are completely at your service these days. You needn’t write a big formal letter to the branch manager requesting for a certain service to be provided to you. Their websites are designed in such a manner that all your needs are just a click away. You can request for a new cheque book, passbook or stop of a cheque payment and many such tasks are now just a click away.